oil and gas

Oil and gas stocks have moved up lately as the U.S. and other economies recover. 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 its risk in today’s uncertain economy. Meanwhile, the company’s investors tap a high, sustainable yield. While that adds to the appeal of Pembina, it also supports the current, solid share price.


PEMBINA PIPELINE, $38.49, is a buy. The company (Toronto symbol PPL; Shares outstanding: 550.3 million; Market cap: $21.3 billion; TSINetwork Rating: Average; Dividend yield: 6.6%; www.pembina.com) operates pipelines that carry half of Alberta’s conventional oil and almost all of B.C.’s oil....

The massive financial cost of the Covid-19 pandemic may spur governments, in the absence of immediate military threats, to consider prioritizing other spending categories. However, increased military budgets and saber rattling from countries such as China and Russia will very likely keep Western military spending at high levels.


Military spending the highest on record


Global military spending in 2020 reached almost $2 trillion U.S., the highest level recorded at least since 1988 and the 6th consecutive annual increase (see graph below).


Over the past five years, the largest increases in spending came from developing countries such as China, Russia and India....

SHAWCOR LTD. $4.93 is still a buy, but only for highly aggressive investors. The company (Toronto symbol SCL; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 70.5 million; Market cap: $347.6 million; Price-to-sales ratio: 0.3; Dividend suspended in March 2020; TSINetwork Rating: Average; www.shawcor.com) makes sealants and coatings that keep oil and gas pipelines from rusting....

The current $1.4 trillion U.S. value of Norway’s sovereign wealth fund corresponds to around a whopping $254,000 per citizen. This sovereign fund is now the world’s largest wealth fund, followed by the China, Kuwait, and Abu Dhabi funds.


Although revenue from oil and gas production is transferred to the fund, these deposits account for less than half the value of the fund....

An abundance of oil and natural gas resources has made Norway one of the wealthiest countries in the world. However, efforts are underway to diversify its economy beyond natural resources, and there are early signs of success.


Time will tell how complete or successful that transition is....

Download our free report and discover 7 stocks due for big gains after investors use tax-loss selling to cut their Canadian capital gains tax.

Oil and gas stocks have moved up as the U.S. and other economies recover. We continue to recommend that most investors maintain 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 at low energy prices....

A: Enterprise Products Partners L.P., $22.01, symbol EPD on New York (Shares outstanding: 2.2 billion; Market cap: $48.0 billion; www.enterprisepartners.com), is a master limited partnership that provides energy infrastructure, including pipelines, storage, natural gas processing, fractionation, and import/export terminals....

Oil and gas stocks have moved up lately as the U.S. and other economies recover. Birchcliff Energy shares have almost tripled over the last year. Still, the shares remain cheap for investors looking to profit from a continuing energy rebound.


BIRCHCLIFF ENERGY, $7.63, is a buy. The company (Toronto symbol BIR; TSINetwork Rating: Speculative) (www.birchcliffenergy.com; Shares outstanding: 267.3 million; Market cap: $2.1 billion; Dividend yield: 0.3%) develops and produces oil and natural gas, mainly in the Peace River Arch area of both Alberta and B.C....