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
IMPERIAL OIL LTD. $36 is also a buy. This company (Toronto symbol IMO; Conservative and Income Growth Portfolios, Resources sector; Shares outstanding: 734.1 million; Market cap: $26.4 billion; Price-to-sales ratio: 1.2; Dividend yield: 2.6%; TSINetwork Rating: Average; www.imperialoil.ca) is teaming up with four other oil sands operators in Alberta (Suncor, Cenovus, Canadian Natural Resources and MEG Energy) in an effort to cut their greenhouse gas emissions.
The five firms will connect their oil sands facilities in the Fort McMurray and Cold Lake regions to a central carbon sequestration hub....
The five firms will connect their oil sands facilities in the Fort McMurray and Cold Lake regions to a central carbon sequestration hub....
Oil prices have almost doubled over the last year to today’s price of roughly $73 U.S. a barrel. Natural gas prices are up as well. Increased industrial activity is driving those gains as the world recovers from the pandemic.
Still, energy prices will likely remain subject to wide and unpredictable swings—spurred by continually changing supply and demand, environmental pressures, and the shift to electric vehicles....
Still, energy prices will likely remain subject to wide and unpredictable swings—spurred by continually changing supply and demand, environmental pressures, and the shift to electric vehicles....
CIMAREX ENERGY, $69.76 (New York symbol XEC; TSINetwork Rating: Extra Risk) (Shares o/s: 102.8 million; Market cap: $7.3 billion; Divd yield: 1.6%) is now merging with Cabot Oil & Gas (symbol COG on New York). The companies have yet to come up with a new name for the combined entity, which will be 50.5% owned by Cimarex....
OPEC recently announced that it would gradually increase oil production over the next few months. Despite the extra supply, oil prices rose on the news because industrial activity around the world continues to recover from the pandemic. Stable prices will also help Ovintiv with its plan to pay down its debt and so cut the risk for its shareholders.
OVINTIV INC....
OVINTIV INC....
CENOVUS ENERGY, $11.06, remains a buy for patient investors. The company (Toronto symbol CVE; Shares outstanding: 2.0 billion; Market cap: $21.6 billion; TSINetwork Rating: Extra Risk; Dividend yield: 0.6%; www.cenovus.com) has completed its acquisition of rival oil producer Husky Energy.
To help pay down the extra debt it assumed as part of the Husky deal, Cenovus is selling some of its less-important assets.
Those include a deal to sell the royalty rights to its Marten Hills oil assets in Alberta to Topaz Energy for $100 million....
To help pay down the extra debt it assumed as part of the Husky deal, Cenovus is selling some of its less-important assets.
Those include a deal to sell the royalty rights to its Marten Hills oil assets in Alberta to Topaz Energy for $100 million....
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....
Prices for commodities such as crude oil and copper have jumped as the global economy rebounds from last year’s pandemic lockdowns. We feel one of the best way for investors to gain exposure to the Resources sector, and earn steady income, is with global giants Chevron and BHP.
CHEVRON CORP....
CHEVRON CORP....
We continue to recommend conservative investors limit their oil holdings to integrated producers such as these three. Their upstream (or producing) businesses benefit from higher crude prices. Their downstream (refining) businesses, on the other hand, convert crude into gasoline and other fuels and so profit when oil prices fall....
CENOVUS ENERGY, $9.59, remains a buy for long-term gains. The company (Toronto symbol CVE; Shares outstanding: 2.0 billion; Market cap: $19.0 billion; TSINetwork Rating: Extra Risk; Dividend yield: 0.7%.; 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, with output of about 750,000 barrels of oil equivalent per day....
The combined firm is now Canada’s third-largest producer of oil and natural gas, with output of about 750,000 barrels of oil equivalent per day....
ENERPLUS CORP., $7.14, is a buy for aggressive investors. The company (Toronto symbol ERF; Shares outstanding: 256.8 million; Market cap: $1.8 billion; TSINetwork Rating: Speculative; Dividend yield: 1.7%) has just closed its acquisition of Williston Basin assets....