oil and gas

Oil and gas prices have moved down lately after a big spike earlier this year, but remain high. The future direction of energy prices depends on a lot of things, particularly economic growth rates around the world. Meanwhile, well-established producers took advantage of the weaker prices earlier in the pandemic to pick up properties and employees who are harder to find in more-prosperous times.


Those top companies also have the strength to survive, even if energy prices again drop and to continue paying dividends....

IMPERIAL OIL LTD., $57.49, Toronto symbol IMO, is a buy.

This company gets about 60% of its production from oil sands operations in Alberta. Imperial also has conventional oil and natural gas operations in the West and holds stakes in projects off the coast of Atlantic Canada.

Imperial’s other operations include three refineries (one in Alberta, two in Ontario) and a petrochemical plant in Sarnia, Ontario....

SHAWCOR LTD. $5.21 (www.shawcor.com) remains a buy. The company makes sealants and coatings that keep oil and gas pipelines from rusting. It also manufactures industrial products, such as electrical wire and protective sheaths, as well as fiberglass-reinforced plastic underground tanks to store fuel and wastewater....

The benchmark crude oil price has jumped roughly 31% in the past year, from $75 U.S. a barrel to $98 U.S. That’s due to several factors, including COVID-19 lockdowns in China and sanctions on oil exports from Russia because of its war on Ukraine.


At the same time, these four leading oil and gas producers are pointing to increasingly stringent environmental regulations as a challenge to expanding their production....

CGI INC., $102.54, Toronto symbol GIB.A, is your #1 Aggressive Buy for 2022.

The stock lets investors tap Canada’s largest provider of computer outsourcing services. It helps its clients automate certain routine functions like accounting and buying supplies....

The shares of oil and gas stocks remain high as the U.S. and other economies recover—and with the Ukraine conflict. We continue to recommend that most investors maintain some exposure to the oil and gas industry as part of a balanced portfolio. But to cut risk, you should stick with producers that have positive cash flow even in times of low energy prices....

Most of Pembina’s pipelines operate under long-term contracts. That helps lower the company’s risk in today’s uncertain economy. Meanwhile, Pembina’s investors tap a high, sustainable yield. That adds to the stock’s appeal and also supports its share price.


PEMBINA PIPELINE, $46.20, is a buy. The company (Toronto symbol PPL; Shares outstanding: 554.3 million; Market cap: $25.1 billion; TSINetwork Rating: Average; Dividend yield: 5.5%; www.pembina.com) operates pipelines that carry half of Alberta’s conventional oil and almost all of B.C.’s oil....

BHP GROUP LTD. (ADR) $56 is a buy. This company (New York symbol BHP; Conservative Growth Portfolio, Resources sector; ADRs outstanding: 2.5 billion; Market cap: $140.0 billion; Price-to-sales ratio: 2.3; Dividend yield: 12.5%; TSINetwork Rating: Average; www.bhp.com) is a leading producer of iron ore (supplying about 75% of earnings),as well as copper, nickel and coal.


On June 1, 2022, BHP merged its oil and gas operations with Australian oil producer Woodside Energy Group Ltd....

Demand for Major Drilling’s specialized services, especially from senior gold producers, including Australia’s largest mining companies, is recovering. Meanwhile, Computer Modelling is benefiting from expanding oil and gas drilling in response to higher energy prices....

OVINTIV INC., $73.62, is a buy. The energy producer (Toronto symbol OVV; Shares outstanding: 258.1 million; Market cap: $18.3 billion; TSINetwork Rating: Average; Dividend yield: 1.4%) operates three core properties: Montney (B.C.), Anadarko (Oklahoma) and Permian (Texas)....