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
SUNCOR ENERGY INC. $46 is a buy. The company (Toronto symbol SU; Conservative Growth Portfolio, Resources sector; Shares outstanding: 1.44 billion; Market cap: $66.2 billion; Price-to-sales ratio: 1.7; Dividend yield: 4.1%; TSINetwork Rating: Average; www.suncor.com) is Canada’s largest integrated oil firm, with major projects in the Alberta oil sands....
CENOVUS ENERGY, $25.70, remains a buy for long-term gains. The company (Toronto symbol CVE; Shares outstanding: 2.0 billion; Market cap: $49.0 billion; TSINetwork Rating: Extra Risk; Dividend yield: 1.6%; www.cenovus.com) completed its acquisition of rival oil producer Husky Energy in January 2021.
The combined firm is now Canada’s third-largest producer of oil and natural gas, and the country’s second-largest refiner.
Cenovus’s production in the three months ended March 31, 2022 rose 3.8%, to 798,600 barrels a day (82% oil, 18% natural gas) from 769,300....
The combined firm is now Canada’s third-largest producer of oil and natural gas, and the country’s second-largest refiner.
Cenovus’s production in the three months ended March 31, 2022 rose 3.8%, to 798,600 barrels a day (82% oil, 18% natural gas) from 769,300....
Chevron and APA have surged to record highs in 2022 thanks to rising crude oil prices. Both are using their extra cash flow to raise their dividends and buy back shares. However, Chevron is the better choice as its refineries will benefit when oil prices eventually weaken.
CHEVRON CORP....
CHEVRON CORP....
BIRCHCLIFF ENERGY, $10.13, is a buy. The company (Toronto symbol BIR; TSINetwork Rating: Speculative) (Shares o/s: 266.0 million; Market cap: $2.6 billion; Dividend yield: 0.4%) reports that its cash flow in the quarter ended December 31, 2021, jumped sharply, to $0.73 a share from $0.25 a year earlier....
CENOVUS ENERGY INC. $21 is a buy. The company (Toronto symbol CVE; Conservative Growth Portfolio, Resources sector; Shares outstanding: 2.0 billion; Market cap: $42.0 billion; Price-to-sales ratio: 0.9; Dividend yield: 0.7%; TSINetwork Rating: Extra Risk; www.cenovus.com) plans to cut its annual greenhouse gas emissions 35% by the end of 2035 compared to 2019 levels....
Canada’s federal government recently announced new greenhouse gas (GHG) reduction targets. Those include cutting emissions from oil and gas producers by 42% before 2031. That new target is more aggressive than Suncor’s or Imperial Oil’s own plan. Even so, meeting it is unlikely to severely impact their earnings considering the government will help offset their costs for new carbon-reduction technologies....
Oil and gas stocks have moved up lately 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....
Oil and gas stocks have moved up as the U.S. and other economies recover. The war in Ukraine has also driven up 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 stick with producers with positive cash flow even at low energy prices....
Oil prices continue to strengthen as COVID-19 travel and other restrictions ease. Despite new government regulations to limit carbon emissions, crude prices will remain elevated as producers like Chevron focus on improving their efficiency instead of increasing production....
Oil and gas prices have moved up lately. But the future direction of energy prices depends on a lot of things, particularly economic growth rates around the world in the wake of COVID-19. Meanwhile, though, well-established companies in the industry took advantage of the earlier setback to pick up properties and employees who might be harder to find in more-prosperous times.
Those top companies also have the strength to survive, even if energy prices drop and to continue paying dividends....
Those top companies also have the strength to survive, even if energy prices drop and to continue paying dividends....