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.
- Invest mainly in well-established companies;
- Spread your money out across most if not all of the five main economic sectors (Manufacturing & Industry; Resources & Commodities; Consumer; Finance; Utilities);
- Downplay or avoid stocks in the broker/media limelight.
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Energy Stocks Library Archives
SUNCOR ENERGY INC. $95 continues to benefit from the jump in crude oil prices due to the Iran war. As a result, revenue in the second quarter of 2026 jumped 49.1%, to $19.01 billion from $12.75 billion. The higher revenue also lifted overall cash flow by 98.2%, to $5.33 billion from $2.69 billion. The company spent $1.05 billion on share buybacks in the quarter, which is why Suncor’s cash flow per share rose at a faster rate of 105.5%, to $4.52 from $2.20.
The company is using that higher cash flow to reward investors. Suncor has increased its monthly share buyback target to $500 million from $350 million. The company also intends to raise the dividend rate by 3% to 5% annually; the current annual rate of $2.40 yields 2.5%.
The company is using that higher cash flow to reward investors. Suncor has increased its monthly share buyback target to $500 million from $350 million. The company also intends to raise the dividend rate by 3% to 5% annually; the current annual rate of $2.40 yields 2.5%.
IMPERIAL OIL LTD., $184.17, is a buy. The company (Toronto symbol IMO; Shares outstanding: 483.6 million; Market cap: $89.1 billion; TSINetwork Rating: Average; Dividend yield: 1.9%; www.imperialoil.ca) now plans to spend about $2.0 billion on capital upgrades and exploration for all of 2026. These investments will probably increase this year’s production by about 3%. However, the company expects maintenance projects will cut volumes at its refineries by 6%.
We think Imperial can easily afford these outlays. It ended the quarter with cash of $2.84 billion, while its long-term debt was $4.00 billion, or a low 4.5% of its market cap.
We think Imperial can easily afford these outlays. It ended the quarter with cash of $2.84 billion, while its long-term debt was $4.00 billion, or a low 4.5% of its market cap.
The shares of oil and gas stocks remain high as energy demand and prices stay up in the wake of the Mideast conflict. U.S. efforts to significantly draw upon Venezuela’s oil reserves will take decades—if it’s even feasible—to lift exports to the world’s biggest economy. These two Canadian stocks are buys.
CENOVUS ENERGY, $45.38, is a buy for long-term gains. The company (Toronto symbol CVE; Shares outstanding: 1.8 billion; Market cap: $83.7 billion; TSINetwork Rating: Average; Dividend yield: 1.9%; cenovus.com) is Canada’s third-largest producer of oil and natural gas after Canadian Natural Resources and Suncor.
CENOVUS ENERGY, $45.38, is a buy for long-term gains. The company (Toronto symbol CVE; Shares outstanding: 1.8 billion; Market cap: $83.7 billion; TSINetwork Rating: Average; Dividend yield: 1.9%; cenovus.com) is Canada’s third-largest producer of oil and natural gas after Canadian Natural Resources and Suncor.
OVINTIV INC., $92.58, is a buy. The company (Toronto symbol OVV; Shares o/s: 276.6 million; Market cap: $25.6 billion; TSINetwork Rating: Average; Dividend yield: 1.8%) recently purchased the 90.4% of NuVista Energy it did not already own for $2.49 billion (all amounts except share price and market cap in U.S. dollars). NuVista operates oil and gas properties in the Alberta portion of the Montney Basin.
While it’s impossible to accurately predict the future of commodity prices, stocks in the Resources sector can account for as much as 10% of your portfolio. You can, however, cut your risk by focusing on high-quality producers such as these three. Still, we see only two as buys right now.
CHEVRON CORP. $200 is a buy. The company (New York symbol CVX; Conservative Growth Portfolio, Resources sector; Shares outstanding: 2.0 billion; Market cap: $400.0 billion; Price-to-sales ratio: 1.9; Dividend yield: 3.6%; TSINetwork Rating: Average; www.chevron.com) is the second-largest integrated oil producer in the U.S. by revenue after ExxonMobil (New York symbol XOM).
CHEVRON CORP. $200 is a buy. The company (New York symbol CVX; Conservative Growth Portfolio, Resources sector; Shares outstanding: 2.0 billion; Market cap: $400.0 billion; Price-to-sales ratio: 1.9; Dividend yield: 3.6%; TSINetwork Rating: Average; www.chevron.com) is the second-largest integrated oil producer in the U.S. by revenue after ExxonMobil (New York symbol XOM).
Oil prices remain volatile due to the conflict in the Middle East. We feel the best way for conservative investors to gain exposure to this vital industry is with integrated producers like Imperial Oil as their refineries help offset the impact of changing crude prices. Imperial, in particular, is also returning more of its excess cash flow to shareholders.
Ovintiv Inc. $88 recently purchased the 90.4% of NuVista Energy Ltd. that it did not already own for $2.49 billion in cash and stock (all amounts except share price and market cap in U.S. dollars). NuVista operates oil and gas properties in the Alberta portion of the Montney Basin.
The company also sold its Anadarko properties in Oklahoma for $2.82 billion. As a result, its production in the second quarter of 2026 fell 0.1%, to 614,600 barrels a day (53% natural gas, 47% oil and liquids) from 615,000 barrels a year earlier.
The company also sold its Anadarko properties in Oklahoma for $2.82 billion. As a result, its production in the second quarter of 2026 fell 0.1%, to 614,600 barrels a day (53% natural gas, 47% oil and liquids) from 615,000 barrels a year earlier.
OVINTIV INC., $81.20, is a buy. The company (Toronto symbol OVV; Shares outstanding: 276.6 million; Market cap: $22.5 billion; TSINetwork Rating: Average; Dividend yield: 2.0%) recently completed its acquisition of the 90.4% of NuVista Energy Ltd. (Toronto symbol NVA) that it did not already own, spending $2.49 billion in cash and stock (all amounts except share price and market cap in U.S. dollars). NuVista operates oil and gas properties in the Alberta portion of the Montney Basin.
Long-time readers know that we aim to keep you informed of important news about the stocks we cover. That means highlighting developments and plans that promise to bolster investor gains. Here are two buys that stand out this month:
BIRCHCLIFF ENERGY, $6.55, is a buy. The company (Toronto symbol BIR; TSINetwork Rating: Speculative) (Shares outstanding: 274.3 million; Market cap: $1.8 billion; Dividend yield: 1.8%) develops and produces oil and gas, mainly in the Peace River Arch area of both Alberta and B.C.
BIRCHCLIFF ENERGY, $6.55, is a buy. The company (Toronto symbol BIR; TSINetwork Rating: Speculative) (Shares outstanding: 274.3 million; Market cap: $1.8 billion; Dividend yield: 1.8%) develops and produces oil and gas, mainly in the Peace River Arch area of both Alberta and B.C.
CENOVUS ENERGY INC. $38 is a buy. The shares of this leading oil producer (Toronto symbol CVE; Conservative Growth Portfolio, Resources sector; Shares outstanding: 1.8 billion; Market cap: $68.4 billion; Price-to-sales ratio: 1.4; Dividend yield 2.3%; TSINetwork Rating: Average; www.cenovus.com) have declined 12% from their recent peak of $43 in May 2026. That’s due to the June drop in crude oil prices as the flow of oil through the Persian Gulf improved with a tentative end to Iran war. Fighting has since resumed.
However, Cenovus also operates four oil refineries in Canada (1) and the U.S. (3). These facilities benefit from lower crude prices, which helps offset the negative impact on drilling operations.
However, Cenovus also operates four oil refineries in Canada (1) and the U.S. (3). These facilities benefit from lower crude prices, which helps offset the negative impact on drilling operations.