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

Tap expanding mining and drilling activity levels

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, $6.38, is a buy. The company (Toronto symbol CMG; TSINetwork Rating: Extra Risk) (www.cmgl.ca; Shares outstanding: 82.6 million; Market cap: $526.9 million; Dividend yield: 0.6%) 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.

2 min read

Pat McKeough

Energy Stocks

Cenovus’s latest acquisition looks promising

Cenovus recently announced a deal to buy rival oil sands producer MEG Energy. While big acquisitions add risk, MEG’s properties are adjacent to Cenvous’s. That gives it plenty of opportunities to cut costs. The company’s experience in integrating Husky Energy, purchased in 2021, also cuts risk for investors.

2 min read

Pat McKeough

Energy Stocks

Cash flow lifts the appeal of these producers

The shares of oil and gas stocks remain high as energy demand stays strong. 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 should meet that requirement. Moreover, they pay solid dividends:

2 min read

Pat McKeough

Energy Stocks

Savvy buy for Cenovus

CENOVUS ENERGY, $22.76, is a buy for long-term gains. Canada’s third-largest oil producer (Toronto symbol CVE; Shares o/s: 1.8 billion; Market cap: $41.0 billion; TSINetwork Rating: Average; Dividend yield: 3.5%; www.cenovus.com) has now agreed to acquire rival MEG Energy Corp. (Toronto symbol MEG). It operates an oil sands property, which is well placed near Cenovus’s operations at Christina Lake in northern Alberta.

The deal will increase the company’s overall production by 110,000 barrels a day to 720,000.

1 min read

Pat McKeough

Energy Stocks

New properties enhance its prospects

OVINTIV INC. $54 is a buy. The company (Toronto symbol OVV; Conservative Growth Portfolio, Resources sector; Shares outstanding: 257.0 million; Market cap: $13.9 billion; Price-to-sales ratio: 1.1; Dividend yield: 3.1%; TSINetwork Rating: Average; www.ovintiv.com) operates three core properties: Montney (B.C.), Permian (Texas) and Anadarko (Oklahoma). In addition to natural gas, these fields produce large amounts of oil and natural gas liquids.

In January 2025, Ovintiv sold its Uinta properties in Utah for $1.9 billion (all amounts except share price and market cap in U.S. dollars). The cash helped fund its acquisition of certain assets in the Montney region from Paramount Resources Ltd. (Toronto symbol POU) for $2.31 billion.

1 min read

Pat McKeough

Energy Stocks

Refineries lift IMO’s cash flow

IMPERIAL OIL LTD. $95 is a buy. The company (Toronto symbol IMO; Conservative and Income Growth Portfolios, Resources sector; Shares outstanding: 509.0 million; Market cap: $48.4 billion; Price-to-sales ratio: 1.0; Dividend yield: 3.0%; TSINetwork Rating: Average; www.imperialoil.ca) gets over 90% of its production from oil sands operations in Alberta. Its other operations include three refineries (one in Alberta, two in Ontario) and a petrochemical plant in Sarnia, Ontario. U.S.-based ExxonMobil (New York symbol XOM) owns 69.6% of Imperial.

1 min read

Pat McKeough

Energy Stocks

Computer Modelling partners with giant Baker Hughes

Computer Modelling offers software and consulting services to help conventional oil and gas producers create 3D models of reservoirs. And now, the company has reached an agreement with giant Baker Hughes (symbol BKR on New York) to further integrate its simulation and seismic technologies with that firm’s digital products.

1 min read

Pat McKeough

Energy Stocks

New trucks offset lower crude prices

SUNCOR ENERGY INC. $54 is a buy. Canada’s largest integrated oil producer (Toronto symbol SU; Conservative Growth Portfolio, Resources sector; Shares outstanding: 1.2 billion; Market cap: $64.8 billion; Price-to-sales ratio: 1.2; Dividend yield: 4.2%; TSINetwork Rating: Average; www.suncor.com) now operates 120 autonomous haul trucks (AHTs) at two of its oil sands projects in Alberta. Control room operators remotely monitor them as they transport bitumen from the mines to processing facilities. The system has helped reduce disruptive incidents and injuries.

1 min read

Pat McKeough

Energy Stocks

Tap into energy growth with these leaders

The shares of oil and gas stocks remain high as energy demand stays strong. Still, to cut risk, stick with producers that have positive cash flow even in times of low energy prices. Here are two that should meet that requirement. Moreover, they pay solid dividends.

CENOVUS ENERGY, $19.39, is a buy for long-term gains. The company (Toronto symbol CVE; Shares outstanding: 1.8 billion; Market cap: $35.2 billion; TSINetwork Rating: Average; Dividend yield: 4.1%; cenovus.com) is now Canada’s third-largest producer of oil and natural gas after Canadian Natural Resources and Suncor....

2 min read

Pat McKeough

Energy Stocks

Imperial Oil set to soar even higher

We continue to recommend you maintain some exposure to oil stocks as part of the Resources portion of your stock holdings. High-quality integrated producer Imperial Oil continues to hit new all-time highs—and it’s now up 42% since we made it a #1 Buy for 2024....

1 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.