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

Birchcliff Energy offers investors a high 7.1% yield

Like all natural-gas-weighted producers, Birchcliff will need gas prices to move higher in order to report stronger cash flow. However, we still like the long-term prospects for investors.
BIRCHCLIFF ENERGY, $5.54, is a buy. The company (Toronto symbol BIR; TSINetwork Rating: Speculative) (Shares outstanding: 269.3 million; Market cap: $1.5… Read More

Use our updates to enhance your portfolio

SUNCOR ENERGY INC. $49 is a buy. The company (Toronto symbol SU; Conservative Growth Portfolio, Resources sector; Shares outstanding: 1.3 billion; Market cap: $63.7 billion; Price-to-sales ratio: 1.2: Dividend yield: 4.4%; TSINetwork Rating: Average; www.suncor.com) is using self-driving trucks at its oil sands projects in Alberta to cut… Read More

Ovintiv mulls asset sale

OVINTIV INC., $55.19, is a buy. The energy producer (Toronto symbol OVV; Shares outstanding: 267.0 million; Market cap: $14.5 billion; TSINetwork Rating: Average; Dividend yield: 2.9%) operates four core properties: Montney (B.C.), Permian (Texas), Anadarko (Oklahoma) and Uinta (Utah).
In June 2023, the company paid private equity firm EnCap… Read More

Rising cash flow cuts Ovintiv’s risk

OVINTIV INC. $58 is a buy. The company (Toronto symbol OVV; Conservative Growth Portfolio, Resources sector; Shares outstanding: 264.1 million; Market cap: $15.3 billion; Price-to-sales ratio: 1.1; Dividend yield: 2.8%; TSINetwork Rating: Average; www.ovintiv.com) operates four core properties: Montney (B.C.), Permian (Texas), Anadarko (Oklahoma) and Uinta (Utah).
Ovintiv continues… Read More

Cenovus remains on track

CENOVUS ENERGY, $27.82, is a buy for long-term gains. The company (Toronto symbol CVE; Shares outstanding: 1.9 billion; Market cap: $50.4 billion; TSINetwork Rating: Average; Dividend yield: 2.6%; www.cenovus.com) has evacuated some of the workers at its Sunrise oil sands project due to wildfires in Northern Alberta.
Even so, the… Read More

Key buy for Devon

DEVON ENERGY, $48.65, is a buy. The company (New York symbol DVN; TSINetwork Rating: Extra Risk) (www.dvn.com; Shares outstanding: 627.6 million; Market cap: $30.3 billion; Dividend yield: 4.2%) is one of the largest explorers and producers of oil and gas in the U.S.
Devon continues to use acquisitions to… Read More

Lower costs will spur your oil returns

We continue to advise that all investors maintain some exposure to the oil and gas industry. To further cut your risk, stick with integrated producers like Suncor and Imperial oil, particularly as their cost-cutting plans should give them more room for dividend increases.
SUNCOR ENERGY INC… Read More

New policy will benefit investors

CENOVUS ENERGY INC. $27 is a buy. Canada’s third-largest oil producer (Toronto symbol CVE; Conservative Growth Portfolio, Resources sector; Shares outstanding: 1.9 billion; Market cap: $51.3 billion; Price-to-sales ratio: 0.9; Dividend yield 2.7%; TSINetwork Rating: Average; www.cenovus.com) has modified its shareholder return policy.
Right now, Cenovus returns 50% of… Read More

Crescent Point is now Veren

VEREN INC., $10.74, is a buy for aggressive investors. The company (Toronto symbol VRN; Shares outstanding: 619.5 million; Market cap: $6.7 billion; TSINetwork Rating: Extra Risk; Dividend yield: 4.3%; www.vrn.com) is the new name of Crescent Point Energy Corp.
The company has rebranded to highlight its new focus on two key… Read More

New pipeline adds to its prospects

IMPERIAL OIL LTD. $96 is a buy. The company (Toronto symbol IMO; Conservative and Income Growth Portfolios, Resources sector; Shares outstanding: 604.8 million; Market cap: $58.1 billion; Price-to-sales ratio: 1.1; Dividend yield: 2.5%; TSINetwork Rating: Average; www.imperialoil.ca) produced an average 421,000 barrels of oil equivalent per day in… Read More

Cenovus upgrades facilities

CENOVUS ENERGY, $27.99, is a buy for long-term gains. The company (Toronto symbol CVE; Shares outstanding: 1.9 billion; Market cap: $52.4 billion; TSINetwork Rating: Average; Dividend yield: 2.0%; www.cenovus.com) sends most of its crude oil production to its 50%-owned oil refineries in Illinois and Texas. Phillips 66 (New York… Read More

Two safety-concious blue chips to buy now

Here are two of our top safety-conscious recommendations. Both have growth ahead. Look for that to spur their share prices and your returns.
BCE INC., $45.76, is a buy. The company (Toronto symbol BCE; Shares outstanding: 912.3 million; Market cap: $41.8 billion; TSINetwork Rating: Above Average; Dividend yield:… Read More

Two resource services stocks set to prosper

Demand for Major Drilling’s specialized services has now mostly 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, $9.68, is a buy. This large contract… Read More

Imperial stays on target

IMPERIAL OIL LTD., $97.84, is a buy. The company (Toronto symbol IMO; Shares o/s: 535.8 million; Market cap: $51.7 billion; TSINetwork Rating: Average; Dividend yield: 2.5%; www.imperialoil.ca) gets over 90% of its production from oil sands operations in Alberta. Imperial also has conventional oil and natural gas operations… Read More