Feb 24 (Reuters) - Shares of Suncor Energy Inc andCanadian Natural Resources Ltd could gain more than 25percent in the next year, helped by valuable asset bases thatmay attract activist investors, Barron's said in its Feb. 25edition.
Suncor is producing significant free cash flow in part fromlucrative refining operations and a big presence in the Albertaoil sands, where its production exceeding 350,000 barrels a dayaccounts for 60 percent of its energy output, the newspapersaid.
It said Canada's largest energy company by market valuecould double its 1.4 percent dividend yield - well below yieldsat Chevron Corp, Exxon Mobil Corp and RoyalDutch Shell Plc - and still have more than C$1 billion($977 million) of excess free cash flow to buy back stock or cutdebt.
Meanwhile, though Canadian Natural Resources is a less safebet for equity investors, it stands to benefit if U.S. PresidentBarack Obama approves the Keystone XL pipeline, offering a meansto transport landlocked Canadian crude, the newspaper said.
If Canadian oil prices rise, Canadian Natural Resourcescould add to its expected $500 million of free cash flow thisyear, allowing it a chance to address concerns of a "restiveinvestor base" that has been demanding larger share buybacks,the newspaper said.
In Friday trading in Toronto, Suncor shares closed atC$31.95, and Canadian Natural Resources shares at C$30.37.Barron's said both stocks could rise to the C$40s in the nextyear, citing price targets from a Macquarie energy analyst.($1 = 1.0238 Canadian dollars) (Writing by Jonathan Stempel in New York; Editing by DaleHudson)