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

Cenovus adds more refining

CENOVUS ENERGY, $25.29, is a buy for long-term gains. The company (Toronto symbol CVE; Shares o/s: 1.9 billion; Market cap: $48.0 billion; TSINetwork Rating: Extra Risk; Divd. yield: 2.1%; www.cenovus.com) recently agreed to buy the 50% of an oil refinery in Toledo, Ohio, that it doesn’t already own....

1 min read

Pat McKeough

Energy Stocks

Two energy producers with gains ahead

Oil and gas stocks have moved up as the U.S. and other economies recover. The war in Ukraine has also spurred prices. We recommend that most investors maintain exposure to the oil and gas industry as part of a balanced portfolio. But to cut risk, you should focus on producers with positive cash flow even at low energy prices....

2 min read

Pat McKeough

Energy Stocks

Imperial Oil invests to diversify revenue

Improving crude prices are letting Imperial Oil invest in new green energy projects that will help it comply with more-stringent environmental regulations. The company is also using its strong cash flow to reward investors.

IMPERIAL OIL LTD. $70 is a buy. This company (Toronto symbol IMO; Conservative and Income Growth Portfolios, Resources sector; Shares outstanding: 584.2 million; Market cap: $40.9 billion; Price-to-sales ratio: 0.8; Dividend yield: 2.5%; TSINetwork Rating: Average; www.imperialoil.ca) gets about 90% of its production from oil sands operations in Alberta....

1 min read

Pat McKeough

Energy Stocks

Refinery purchase still on track

CENOVUS ENERGY INC. $26 is a buy. The company (Toronto symbol CVE; Conservative Growth Portfolio, Resources sector; Shares outstanding: 1.9 billion; Market cap: $49.4 billion; Price-to-sales ratio: 0.7; Dividend yield 1.8%; TSINetwork Rating: Extra Risk; www.cenovus.com) recently agreed to buy the 50% of a oil refinery in Toledo, Ohio, that it doesn’t already own....

1 min read

Pat McKeough

Energy Stocks

Key updates on your safety-conscious stocks

IMPERIAL OIL LTD., $70.33, is a buy. The company (Toronto symbol IMO; Shares o/s: 584.2 million; Market cap: $42.5 billion; TSINetwork Rating: Average; Dividend yield: 2.5%; www.imperialoil.ca) is Canada’s third-largest publicly traded oil company after Canadian Natural Resources (No....

2 min read

Pat McKeough

Energy Stocks

APA rewards shareholders

APA CORP. $44 is a hold. The company (New York symbol APA; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 321.5 million; Market cap: $14.1 billion; Price-to-sales ratio: 1.4; Dividend yield: 2.3%; TSINetwork Rating: Average; www.apacorp.com) produces oil and natural gas in the U.S., Egypt and the U.K.

APA now plans to return 60% of its free cash flow (regular cash flow less capital expenditures) to shareholders through dividends and share buybacks....

1 min read

Pat McKeough

Energy Stocks

Cenovus ups its spending

CENOVUS ENERGY, $24.43, is a buy for long-term gains. The company (Toronto symbol CVE; Shares outstanding: 1.9 billion; Market cap: $46.9 billion; TSINetwork Rating: Extra Risk; Dividend yield: 1.9%; www.cenovus.com) is now Canada’s third-largest producer of oil and natural gas, and the country’s second-largest refiner.

Cenovus plans to spend between $4.0 billion and $4.5 billion on exploration and upgrades in 2023....

1 min read

Pat McKeough

Energy Stocks

High yields add to their attractiveness

The shares of oil and gas stocks remain high as the U.S. and other economies recover—and with the Ukraine conflict. 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....

2 min read

Pat McKeough

Energy Stocks

IMO accelerates into 2023

IMPERIAL OIL LTD., $62.11, is a buy. The company (Toronto symbol IMO; Shares o/s: 604.8 million; Market cap: $38.3 billion; TSINetwork Rating: Average; Dividend yield: 2.8%; www.imperialoil.ca) now plans to spend $1.7 billion on capital upgrades and exploration in 2023....

1 min read

Pat McKeough

Energy Stocks

Higher prices also benefit these three picks

Like Imperial Oil (see page 1), these three oil and gas producers are also benefitting from higher energy prices and moderating capital spending plans. That’s freeing up more cash for dividends and debt repayments.

We continue to see all three as high-quality buys for the Resources portion of your portfolio....

5 min read

Pat McKeough

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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.