Those assets include the nation’s largest electricity transmission system as well as the company’s John W. Turk Jr. Power Plant in Arkansas. That plant is the first coal-fueled power plant in the United States to use advanced ultra-supercritical technology. It just came online in 2012, and it’s already exceeding expectations. American Electric Power Company, Inc. (NYSE:AEP) has plans to add to these assets by increasing its capital expenditures from $3.1 billion in 2012, to $3.6 billion this year. As these new projects come online, combined with management’s disciplined cost controls, it provides the necessary fuel to keep driving that dividend higher in the future.
Foolish bottom line
While the energy industry is very capital intensive, many companies have plenty of cash left over be returned to shareholders. If you believe the research, that means each name on this list has a chance to outperform over the long term. However, the one name that’s most interesting is Halliburton.
The article 3 Energy Companies Open Their Wallets Wider to Shareholders originally appeared on Fool.com and is written by Matt DiLallo.
Fool contributor Matt DiLallo has no position in any stocks mentioned. The Motley Fool recommends El Paso Pipeline Partners LP, Halliburton, and Kinder Morgan. The Motley Fool owns shares of Kinder Morgan.
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