Buy these producers for oil-and-gas gains

Article Excerpt

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. Here are two that meet that requirement: PEYTO EXPLORATION & DEVELOPMENT, $9.69, is a buy for aggressive investors. This producer (Toronto symbol PEY; Shares outstanding: 165.1 million; Market cap: $1.6 billion; TSINetwork Rating: Speculative Risk; Dividend yield: 0.4%; www.peyto.com) focuses on both gas and oil in Alberta. Its production is 86% gas and 14% oil. In the quarter ended June 30, 2021, output rose 13.6%, to 88,738 barrels of oil equivalent per day from 78,097 a year earlier. Cash flow jumped 150.0%, to $0.50 a share from $0.20. The higher production and increased oil and gas prices contributed to the rise. Peyto’s long-term debt stands…