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

Devon gains focus

DEVON ENERGY $26.91 (New York symbol DVN; TSINetwork Rating: Extra Risk) (405-235-3611; www.dvn.com; Shares o/s: 415.2 million; Market cap: $10.7 billion; Dividend yield: 1.3%) is a leading explorer and producer of oil and natural gas in the U.S.
The company now plans to focus on four core areas in… Read More

Here’s two Resource buys for an oil rebound

The recent drop in oil and gas prices has hurt the shares of both Encana and Finning. However, their recent acquisitions position them to profit when oil recovers.
ENCANA CORP. $6.37 (Toronto symbol ECA; Conservative Growth Portfolio, Resources sector; Shares outstanding: 1.5 billion; Market cap: $9.6 billion;… Read More

Updates on CP Rail, Pengrowth Energy & BCE INC.

CANADIAN PACIFIC RAILWAY $306.96 (Toronto symbol CP; Shares o/s: 147.7 million; Market cap: $42.3 billion; TSINetwork Rating: Above Average; Dividend yield: 1.1%; www.cpr.ca) ships freight over its 22,000-kilometre rail network between Montreal and Vancouver, with links to hubs in the U.S. Midwest and Northeast.
The company continues to… Read More

IMO hikes its dividend

IMPERIAL OIL LTD. $36.20 (Toronto symbol IMO; Shares outstanding: 772.6 million; Market cap: $27.7 billion; TSINetwork Rating: Average; Dividend yield: 2.4%; www.imperialoil.ca) is Canada’s third-largest publicly traded oil company, after Suncor (No. 1) and Canadian Natural Resources. U.S.-based ExxonMobil (New York symbol XOM) owns 69.6% of Imperial.
Imperial’s… Read More

Apache ready to offset lower prices

APACHE CORP. $27 (New York symbol APA; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 375.9 million; Market cap: $10.1 billion; Price-to-sales ratio: 1.4; Dividend yield: 3.7%; TSINetwork Rating: Average; www.apachecorp.com) produces oil and natural gas from properties in the U.S., Egypt and the U.K.
Due to weaker crude… Read More

Sasol commits to Asia

SASOL LTD. (ADR) $25.64 (New York symbol SSL; Extra Risk) (082-883-9697; www.sasol.com; ADRs o/s: 624.7 million; Market cap: $16.0 billion; Dividend yield: 2.7%) has now completed its new alkoxylation plant in Nanjing, Jiangsu Province, China, on time and on budget.
Alkoxylation is a process that converts alcohols from oil… Read More

Imperial restarts oil by rail

IMPERIAL OIL LTD. $38.73 (Toronto symbol IMO; Shares outstanding: 777.6 million; Market cap: $29.9 billion; TSINetwork Rating: Average; Dividend yield: 2.0%; www.imperialoil.ca) is Canada’s third-largest publicly traded oil company, after Suncor (No. 1) and Canadian Natural Resources.
Late last year, the Alberta government ordered oil producers in the… Read More

Lower gas prices offset their drilling success

ARC RESOURCES $8.30 (Toronto symbol ARX; Shares outstanding: 352.1 million; Market cap: $2.9 billion; TSINetwork Rating: Speculative; Dividend yield: 7.2%; www.arcresources.com) produces oil and natural gas in Western Canada. Its average output of 136,502 barrels of oil equivalent per day is 74% natural gas and 26%… Read More

Demand for their products stays high

PASON SYSTEMS $20.40 (Toronto symbol PSI; TSINetwork Rating: Speculative) (403-301-3400; www.pason.com; Shares outstanding: 85.8 million; Market cap: $1.8 billion; Dividend yield: 3.5%) serves drilling contractors for oil and gas firms in Canada, the U.S., Mexico and Argentina. The company provides them with rental equipment for monitoring and managing… Read More

These two energy stocks are bargains

BIRCHCLIFF ENERGY $3.77 (Toronto symbol BIR; TSINetwork Rating: Speculative) (403-261-6401; www.birchcliffenergy.com; Shares outstanding: 263.0 million; Market cap: $999.8 million; Dividend yield: 2.8%) explores for, develops and produces oil and gas, mainly in the Peace River Arch area of both Alberta and B.C. About 79% of its output is… Read More

Bellatrix is a sell

BELLATRIX EXPLORATION $0.30 (Toronto symbol BXE; TSINetwork Rating: Speculative) (403-266-8670; Shares outstanding: 49.3 million; Market cap: $23.5 million; No dividends paid) is now undertaking a major recapitalization to deal with its big debt. The strategy will see its debt cut by approximately 23%, and also lowers its cash… Read More

Imperial slows down Aspen

IMPERIAL OIL LTD. $36.20 (Toronto symbol IMO; Shares outstanding: 777.6 million; Market cap: $28.2 billion; TSINetwork Rating: Average; Dividend yield: 2.1%; www.imperialoil.ca) plans to spend $2.6 billion to develop its Aspen oil sands property in Alberta.

The company began work on Aspen in late 2018. However, the… Read More

Crescent needs higher oil

CRESCENT POINT ENERGY $4.34 (Toronto symbol CPG; Shares ooutstanding: 550.6 million; Market cap: $2.3 billion; TSINetwork Rating: Extra Risk; Dividend yield: 1.0%; www.crescentpointenergy.com) produces oil and gas at its Bakken light oil development in southeastern Saskatchewan.

In the quarter ended December 31, 2018, Crescent’s average daily output fell… Read More

Debt reduction shores up these oil producers

ENCANA CORP. $9.15 (Toronto symbol ECA; Shares outstanding: 1.5 billion; Market cap: $14.3 billion; TSINetwork Rating: Average; Dividend yield: 1.1%; www.encana.com) operates four key properties: Montney (B.C.), Duvernay (Alberta), and Eagle Ford and Permian (both in Texas). In addition to natural gas, these fields produce large… Read More

Imperial delays key project

IMPERIAL OIL LTD. $36 (Toronto symbol IMO; Cyclical-Growth Payer Portfolio, Resources sector; Shares outstanding: 792.7 million; Market cap: $28.5 billion; Dividend yield: 2.1%; Dividend Sustainability Rating: Above Average; www.imperialoil.ca) last raised its dividend by 18.8% with the July 2018 payment. The new annual rate of… Read More

Market still oversupplied

CAMECO CORP. $15.93 (Toronto symbol CCO; TSINetwork Rating: Extra Risk) (306-956-6200; www.cameco.com; Shares outstanding: 395.8 million; Market cap: $6.3 billion; Dividend yield 0.5%) is the world’s biggest uranium producer.
The company’s revenue in the quarter ended December 31, 2018, rose 2.7%, to $831 million from… Read More

They aim to streamline their operations

DEVON ENERGY CORP. $29.33 (New York symbol DVN; TSINetwork Rating: Extra Risk) (405-235-3611; www.dvn.com; Shares outstanding: 436.3 million; Market cap: $12.6 billion; Dividend yield: 1.2%) is one of the largest explorers and producers of oil and natural gas in the U.S. The production mix for… Read More