Use these two to tap rising energy prices

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 at low energy prices. Here are two that meet that requirement: PEYTO EXPLORATION & DEVELOPMENT, $5.81, is a buy for aggressive investors. This gas-weighted producer (Toronto symbol PEY; Shares o/s: 165.1 million; Market cap: $952.5 million; TSINetwork Rating: Speculative Risk; Dividend yield: 0.7%; www.peyto.com) produces gas and oil in Alberta. Its production is 86% gas and 14% oil. In the quarter ended March 31, 2021, output rose 12.2%, to 88,070 barrels of oil equivalent per day from 78,514 a year earlier. Cash flow jumped 115.2%, to $0.71 a share from $0.33. The higher production and increased oil and gas prices contributed to the rise. The company’s long-term debt stands at $1.15 billion,…

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