Energy Stocks

What are energy stocks?

Businesses that work in the extraction, refining and delivery of energy sources such as natural gas, oil, uranium and coal, are considered energy stocks.

Resource and commodity stocks in general should make up only a limited portion of your portfolio—say less than 20% for a conservative investor or as much as 30% for an aggressive investor. And as part of that segment, energy stocks could make up, say half of that total. The rest could be fertilizer stocks, mining stocks and so on.

Oil and gas stocks have been below-average performers lately, and many investors are tempted to get out of the industry altogether. However, the energy sector can play a crucial role in your portfolio as a hedge against inflation. The low inflation rates of the past couple of decades deserve some of the blame for the poor performance of the sector. However, energy stocks will likely rebound in years to come as the global economy recovers.

  1. Invest mainly in well-established companies;
  2. Spread your money out across most if not all of the five main economic sectors (Manufacturing & Industry; Resources & Commodities; Consumer; Finance; Utilities);
  3. Downplay or avoid stocks in the broker/media limelight.

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Energy Stocks Library Archives

Higher dividends on the way

CENOVUS ENERGY INC. $24 is a buy. The country’s third-largest oil producer (Toronto symbol CVE; Conservative Growth Portfolio, Resources sector; Shares outstanding: 1.9 billion; Market cap: $45.6 billion; Price-to-sales ratio: 0.8; Dividend yield 2.3%; TSINetwork Rating: Average; www.cenovus.com) plans to spend between $4.5 billion and $5.0 billion on… Read More

Cenovus boost spending

CENOVUS ENERGY, $23.42, is a buy for long-term gains. The company (Toronto symbol CVE; Shares o/s: 1.9 billion; Market cap: $44.4 billion; TSINetwork Rating: Average; Yield: 2.4%; www.cenovus.com) expects to spend between $4.5 billion and $5.0 billion on exploration and upgrades in 2024. That’s up from its likely 2023… Read More

Enerplus accepts a bid

ENERPLUS CORP., $23.98, (Toronto symbol ERF; Shares outstanding: 203.3 million; Market cap: $4.9 billion; TSINetwork Rating: Extra Risk; Dividend yield: 1.4%) produces oil and gas mostly from properties in the Bakken area of North Dakota, the DJ Basin in Colorado, and the Marcellus Shale in Pennsylvania.
The company’s shares… Read More

Birchcliff cuts its dividend

BIRCHCLIFF ENERGY, $4.82, is a buy. The company (Toronto symbol BIR; TSINetwork Rating: Speculative) (Shares outstanding: 266.6 million; Market cap: $1.3 billion; Dividend yield: 8.3%) has cut your quarterly dividend by 50.0% due to lower natural gas prices. With the March 2024 payment, investors will receive $0.10 a share… Read More

New pipeline improves their prospects

These two oil producers continue to increase their production. That will let them take advantage of the expansion of the TransMountain pipeline, which pumps crude from Alberta to the B.C. coast. The new line will let them sell crude at higher prices than oil shipped… Read More

Cenovus adds a partner

CENOVUS ENERGY, $21.78, is a buy for long-term gains. The company (Toronto symbol CVE; Shares o/s: 1.9 billion; Market cap: $41.8 billion; TSINetwork Rating: Average; Yield: 2.6%; www.cenovus.com) has formed a new joint venture with Athabasca Oil (Toronto symbol ATH) to manage their properties in the Kaybob Duvernay region… Read More

Ovintiv looks like a deal

OVINTIV INC., $57.03, is a buy. The energy producer (Toronto symbol OVV; Shares outstanding: 272.9 million; Market cap: $16.0 billion; TSINetwork Rating: Average; Dividend yield: 2.8%) operates four core properties: Montney (B.C.), Permian (Texas), Anadarko (Oklahoma) and Uinta (Utah).
In 2024, Ovintiv expects to spend between $2.1 billion and… Read More

These Resources partners are solid buys

Demand for Major Drilling’s specialized services has now recovered. Meanwhile, Computer Modelling is benefiting from expanding oil and gas drilling in response to overall higher energy prices. We think there are still gains ahead for both stocks.
MAJOR DRILLING, $8.98, is a buy. This large contract driller… Read More

Ovintiv aims to cut its debt

OVINTIV INC. $55 is a buy. The oil and gas producer (Toronto symbol OVV; Conservative Growth Portfolio, Resources sector; Shares outstanding: 273.7 million; Market cap: $15.1 billion; Price-to-sales ratio: 1.0; Dividend yield: 2.9%; TSINetwork Rating: Average; www.ovintiv.com) operates four core properties: Montney (B.C.), Permian (Texas), Anadarko (Oklahoma) and… Read More

These two keep rewarding their investors

Here are two of our leading safety-conscious oil and gas recommendations. Both are in strong positions to profit from higher energy prices and to keep rewarding investors with higher dividends and share buybacks. Each is a buy.
IMPERIAL OIL LTD., $79.80, is a buy. The company (Toronto symbol… Read More

Imperial Oil buys back more stock

IMPERIAL OIL LTD. $75 is a buy. The oil producer (Toronto symbol IMO; Conservative and Income Growth Portfolios, Resources sector; Shares outstanding: 604.8 million; Market cap: $45.4 billion; Price-to-sales ratio: 0.9; Dividend yield: 2.7%; TSINetwork Rating: Average; www.imperialoil.ca) is using its strong cash flow to reward investors with… Read More

Big purchase for Crescent

CRESCENT POINT ENERGY, $9.58, is a buy for aggressive investors. The company (Toronto symbol CPG; Shares o/s: 536.1 million; Market cap: $5.1 billion; TSINetwork Rating: Extra Risk; Dividend yield: 4.2%) is now buying Hammerhead Energy (Toronto symbol HHRS) for $2.55 billion.
The deal will see Crescent Point acquire 105,000 acres… Read More

Use these updates to enhance your returns

PHILIPS ELECTRONICS N.V. ADRs $21 is a hold. The company (New York symbol PHG; Conservative Growth Portfolio, Manufacturing sector; ADRs o/s: 920.8 million; Market cap: $19.3 billion; Price-to-sales ratio: 1.0; Divd. yield: 4.5%; TSINetwork Rating: Average; www.philips.com) makes industrial health-care products, including X-ray scanners and ultrasound systems, along… Read More

Here are key updates on your holdings

SUNCOR ENERGY INC. $43 is a buy. The company (Toronto symbol SU; Conservative Growth Portfolio, Resources sector; Shares o/s: 1.3 billion; Market cap: $55.9 billion; Price-to-sales ratio: 1.1: Dividend yield: 4.8%; TSINetwork Rating: Average; www.suncor.com) recently announced a new strategy under which it will focus on its core… Read More

Imperial Oil can go even higher

OPEC and Russia (together accounting for about 40% of the world’s oil production) recently agreed to extend their current production cuts until the end of 2023, and likely into 2024. That has helped lift oil prices from about $67 U.S. a barrel in June to… Read More

They have strong prospects and no debt

Demand for Major Drilling’s specialized services is now recovering. Meanwhile, Computer Modelling is benefiting from expanding oil and gas drilling in response to overall higher energy prices. We think there are still gains ahead for both stocks.
MAJOR DRILLING, $8.04, is a buy. This large contract driller… Read More

Cenovus continues to cut debt

CENOVUS ENERGY INC. $28 is a buy. The company (Toronto symbol CVE; Conservative Growth Portfolio, Resources sector; Shares outstanding: 1.9 billion; Market cap: $53.2 billion; Price-to-sales ratio: 0.9; Dividend yield 2.0%; TSINetwork Rating: Average; www.cenovus.com) is now Canada’s third-largest producer of oil and natural gas after Canadian Natural… Read More