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.

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

Energy Stocks

Here are updates on two of your buys: Eli Lilly, Devon Energy

ELI LILLY & CO., $1,078.52, is still a buy. The company (New York symbol LLY; TSINetwork Rating: Above Average) (www.lilly.com; Shares outstanding: 895.0 million; Market cap: $965.3 billion; Dividend yield: 0.6%) discovers, develops, manufactures and markets human pharmaceutical products. The stock continues to hit new all-time highs for our subscribers.

1 min read

Pat McKeough

Energy Stocks

We still like these oil sands producers

The capture of Venezuelan president Nicolas Maduro by the U.S. and the Trump administration’s plan to increase oil production in that country initially hurt the stock prices of Canadian producers including Suncor and Cenovus. That’s mainly because higher production would weigh on crude prices and could displace Canadian oil at refineries on the U.S. Gulf Coast. However, it will take years to ramp up Venezuelan production. The situation could also spur the building of new pipelines to deliver Canadian crude to non-U.S. markets.

2 min read

Pat McKeough

Energy Stocks

Profit from energy demand with these buys

Oil and gas stocks continue to benefit from still-strong energy demand. Still, to cut risk, stick with producers that have positive cash flow even in times of low energy prices. Here are two that should meet that requirement. Moreover, they pay solid dividends.

CENOVUS ENERGY, $21.95, is a buy for long-term gains. The company (Toronto symbol CVE; Shares outstanding: 1.9 billion; Market cap: $41.4 billion; TSINetwork Rating: Average; Dividend yield: 3.6%; cenovus.com) is Canada’s third-largest producer of oil and natural gas after Canadian Natural Resources and Suncor. It also operates refineries in Canada and the U.S.

2 min read

Pat McKeough

Energy Stocks

Ovintiv shifts its focus to Canada

OVINTIV INC. $57 is a buy. The company (Toronto symbol OVV; Conservative Growth Portfolio, Resources sector; Shares outstanding: 257.0 million; Market cap: $14.6 billion; Price-to-sales ratio: 1.2; Dividend yield: 2.9%; TSINetwork Rating: Average; www.ovintiv.com) has agreed to acquire NuVista Energy Ltd. (Toronto symbol NVA), which produces oil and natural gas in the Alberta portion of the Montney Basin.

1 min read

Pat McKeough

Energy Stocks

Buy these producers for oil-and-gas gains

The shares of oil and gas stocks remain high as energy demand stays strong. We continue to recommend that most investors maintain some exposure to the oil and gas industry as part of a balanced portfolio. To cut risk, you should stick with producers that have positive cash flow even in times of low energy demand and prices. Here are two that should meet that requirement. Moreover, they pay solid dividends:

PEYTO EXPLORATION & DEVELOPMENT, $22.65, is a buy for aggressive investors. This producer (Toronto symbol PEY; Shares outstanding: 201.9 million; Market cap: $4.6 billion; TSINetwork Rating: Extra Risk; Dividend yield: 5.8%; www.peyto.com) focuses on both gas and oil in Alberta. Its production is 88% gas and 12% oil.

2 min read

Pat McKeough

Energy Stocks

Big purchase for Ovintiv

OVINTIV INC., $59.06, is a #1 Buy for 2025. The company (Toronto symbol OVV; Shares outstanding: 253.3 million; Market cap: $15.0 billion; TSINetwork Rating: Average; Dividend yield: 2.9%) has agreed to acquire NuVista Energy Ltd. (Toronto symbol NVA). That firm produces roughly 100,00 barrels a day (75% natural gas, 25% oil and liquids), mainly from its properties in the Alberta portion of the Montney Basin.

1 min read

Pat McKeough

Energy Stocks

Cut your oil risk with Suncor

Despite uncertainty over tariffs and slowing economic growth, we continue to recommend all investors maintain some exposure to the cyclical oil and gas industry. The best way to cut your risk is with well-established producers with large reserves like Suncor. The company’s refineries also help it stay profitable when crude prices fall. That will help Suncor with its plan to raise your dividend between 3% and 5% annually.

2 min read

Pat McKeough

Energy Stocks

Cenovus set to acquire MEG

CENOVUS ENERGY INC. $25 is a buy. The company (Toronto symbol CVE; Conservative Growth Portfolio, Resources sector; Shares outstanding: 1.8 billion; Market cap: $45.0 billion; Price-to-sales ratio: 0.8; Dividend yield 3.1%; TSINetwork Rating: Average;

1 min read

Pat McKeough

Energy Stocks

These safety-conscious stocks remain buys

ENBRIDGE, $65.78, is a buy. The firm (Toronto symbol ENB; Shares outstanding: 2.2 billion; Market cap: $152.4 billion; TSINetwork Rating: Above Average; Dividend yield: 5.7%; www.enbridge.com) recently announced that it would proceed with two new natural gas pipeline projects to spur its growth.

They include increasing capacity on its Algonquin Gas Transmission pipeline, which delivers natural gas in New Jersey, New York, Connecticut, Rhode Island and Massachusetts. It expects to complete these improvements in 2029.

2 min read

Pat McKeough

Energy Stocks

Chevron’s refineries give it an edge

Oil and gas prices remain volatile due to sanctions on Russian producers and concerns over global economic growth. To cut your risk, we prefer integrated oil firms like Chevron, whose refineries benefit from lower crude prices, over smaller producers like APA.

CHEVRON CORP. $155 is a buy. The company (New York symbol CVX; Conservative Growth Portfolio, Resources sector; Shares outstanding: 1.8 billion; Market cap: $279.0 billion; Price-to-sales ratio: 1.4; Dividend yield: 4.4%; 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).

2 min read

Pat McKeough

Testimonials

The cornerstones of Pat’s strategy–value, diversification and timelines–make his newsletter, The Successful Investor, highly profitable while minimizing risk. His advice is no-nonsense, down-to-earth and based on solid research. You’ll know what to invest in and what to avoid.

Chuck Chakrapani, PhD
Investors Association of Canada
The older I get the better dividends look. For retirees and would-be retirees who want to sleep at night, I can’t think of a better source of information on reliable growing dividend income than Pat McKeough’s newsletter, Dividend Advisor.

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Financial Post Columnist
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I appreciate the 25 years of above market returns I received by following your advice. at least 95% of my investment decisions were based on TSI recommendations.

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Subscriber since 1996. Inner Circle Member Since 2006
The newsletters I receive in Inner Circle Pro are fantastic! I have been following Pat’s advice for years and everything he has said has been amazing. His commentaries are brilliant, insightful, educational, rational and balanced. My returns are almost double the TSE and I have referred many of my friends who have switched over to your services.

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Inner Circle Pro subscriber

Browse Premium Topics

Cannabis

Spinoffs

One of the ways a company can try to unlock its own hidden value is by creating a separate company out of a corporate subsidiary. The parent company can either sell stock in the new company to the public, or spin it off—hand the stock out to its own investors.

Dividend Stocks

Dividend stocks make cash payouts that serve as a way for companies to share the wealth they’ve accumulated. These payouts are drawn from earnings and cash flow and paid to the shareholders of the company. Typically, these dividends are paid quarterly, although they may be paid annually or even monthly as well.

ETFs

What are ETFs?

ETF is an acronym for exchange traded fund. These exchange traded funds are used to track indexes as closely as possible, since investors cannot actually buy an index outright.

Value Stocks

What are value stocks?

One of the sweetest and most profitable pleasures of successful investing is to buy high-quality “value stocks” (or stocks that are reasonably priced, if not cheap, in relation to its sales, earnings or assets), then hold on to them as mainstream investors recognize the value and push up the share price.

Blue Chip Stocks

Blue chip stocks are big, well-established, dividend-paying corporations with strong business prospects. These are companies that also have sound management that should be able to make the right moves to keep competing successfully in a changing marketplace.

Penny Stocks

A penny stock in general trades for under five dollars a share, and as the name implies, sometimes for pennies. Most of the time they’re young companies, or start-ups in speculative markets like mining or technology.

Growth Stocks

Growth stocks are companies that are likely to have sales and earnings growth well above market average. Frequently they pay few, if any, dividends. Instead they typically reinvest any extra cash flow to promote further growth. Chosen wisely—according to Pat McKeough’s advice—high-quality growth-oriented stocks can be worthwhile additions to most well-diversified portfolios.

Wealth Management

Wealth management is the practice of putting your savings to work so that it continues to grow over your lifetime and will also benefit your heirs. Wealth management encompasses many different areas of investing like long term investment planning and retirement planning.

Mining Stocks

Mining stocks are investments in companies that produce or explore for minerals. Some of these minerals include uranium, coal, molybdenum (which is used in steelmaking), copper, silver and gold. They are affected by fluctuating commodity prices in addition to their own business and operating risks.

How To Invest

Pat McKeough has been making investing for beginners simple—and profitable—by helping investors make big gains for more than 25 years. His advice to beginning investors is the same as it is for all investors: buy high-quality, mostly dividend paying stocks (or ETFs that hold these stocks) and evenly spread your investments over the five main economic sectors (Resources, Manufacturing, Finance, Utilities and Consumer). Pat also believes investors should avoid stocks in the broker/media limelight and focus on those with hidden or little-noticed assets.

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.