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
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.
Suncor shares, like those of other oil producers, have rallied since the outbreak of the Iran war in February 2026. The conflict has disrupted crude oil flows through the Persian Gulf, driving oil prices higher.
Despite uncertainty over the future direction of oil prices, Suncor is in a strong position to keep moving higher.
Despite uncertainty over the future direction of oil prices, Suncor is in a strong position to keep moving higher.
IMPERIAL OIL LTD., $171.74, is a buy. The company (Toronto symbol IMO; Shares outstanding: 483.6 million; Market cap: $83.1 billion; TSINetwork Rating: Average; Dividend yield: 2.0%; www.imperialoil.ca) continues to reward investors, thanks to war-inflated crude oil prices and cash flow.
With the April 2026 payment, it raised your quarterly dividend by 20.8%. Investors now receive $0.87 a share instead of $0.72. The new annual rate of $3.48 yields 2.0%.
With the April 2026 payment, it raised your quarterly dividend by 20.8%. Investors now receive $0.87 a share instead of $0.72. The new annual rate of $3.48 yields 2.0%.
Demand for Major Drilling’s specialized services now looks to be moving up. Meanwhile, Computer Modelling is benefiting from expanded oil and gas drilling in response to overall higher energy prices. We think there are gains ahead for both stocks.
COMPUTER MODELLING GROUP, $3.82, is a buy. The company (Toronto symbol CMG; TSINetwork Rating: Extra Risk) (www.cmgl.ca; Shares outstanding: 78.0 million; Market cap: $297.9 million; Dividend yield: 1.0%) offers software and consulting services to help conventional oil and gas producers create 3D models of reservoirs. That lets them squeeze more out of those holes using advanced recovery techniques such as injecting steam and chemicals.
COMPUTER MODELLING GROUP, $3.82, is a buy. The company (Toronto symbol CMG; TSINetwork Rating: Extra Risk) (www.cmgl.ca; Shares outstanding: 78.0 million; Market cap: $297.9 million; Dividend yield: 1.0%) offers software and consulting services to help conventional oil and gas producers create 3D models of reservoirs. That lets them squeeze more out of those holes using advanced recovery techniques such as injecting steam and chemicals.
Ovintiv Inc. $81 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.
CENOVUS ENERGY, $41.00, is primed for a 16% jump in production for 2026 thanks to its $4.99-billion purchase of rival oil sands producer MEG Energy Corp. (formerly Toronto symbol MEG) in November 2025.
The additional assets should also lift Cenovus’s cash flow by a whopping 55% to $7.63 a share.
The additional assets should also lift Cenovus’s cash flow by a whopping 55% to $7.63 a share.
The shares of oil and gas stocks remain high as energy demand stays strong and prices remain high in the wake of the Mideast conflict. We continue to recommend that most investors maintain some exposure to the oil and gas industry as part of a balanced portfolio. Here are two buys.
IMPERIAL OIL LTD., $175.68, is a buy. The company (Toronto symbol IMO; Shares o/s: 483.6 million; Market cap: $85.0 billion; TSINetwork Rating: Average; Yield: 2.0%; imperialoil.ca) produced an average of 419,000 barrels of oil equivalent (99% oil, 1% natural gas) per day for the three months ended March 31, 2026. That’s up 0.2% from 418,000 a year earlier. Still, due to outages, its refineries processed 384,000 barrels a day—down 3.3%.
IMPERIAL OIL LTD., $175.68, is a buy. The company (Toronto symbol IMO; Shares o/s: 483.6 million; Market cap: $85.0 billion; TSINetwork Rating: Average; Yield: 2.0%; imperialoil.ca) produced an average of 419,000 barrels of oil equivalent (99% oil, 1% natural gas) per day for the three months ended March 31, 2026. That’s up 0.2% from 418,000 a year earlier. Still, due to outages, its refineries processed 384,000 barrels a day—down 3.3%.
Our Power Growth Investor pick DEVON ENERGY, $46.90 has now completed its acquisition of COTERRA ENERGY (another Power Growth Investor buy).
The roughly $21.5 billion all-stock deal has created one of the largest U.S. oil-and-gas producers and another dominant player in the Permian Basin of West Texas and New Mexico. Both companies currently operate in the oil rich region.
The roughly $21.5 billion all-stock deal has created one of the largest U.S. oil-and-gas producers and another dominant player in the Permian Basin of West Texas and New Mexico. Both companies currently operate in the oil rich region.
CENOVUS ENERGY INC. $39 is set for a 16% jump in production for 2026 thanks to its $4.99-billion purchase of rival oil sands producer MEG Energy Corp. (formerly Toronto symbol MEG) in November 2025.
The additional assets should also lift Cenovus’s cash flow by a whopping 55% to $7.63 a share. The oil giant’s shares currently trade at just 5.1 times that forecast, and the higher cash flow has prompted the company to raise your dividend by 10.0% to $0.88; it now yields 2.3%.
The additional assets should also lift Cenovus’s cash flow by a whopping 55% to $7.63 a share. The oil giant’s shares currently trade at just 5.1 times that forecast, and the higher cash flow has prompted the company to raise your dividend by 10.0% to $0.88; it now yields 2.3%.