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

Two beaten-down juniors: 1 buy, 1 hold

PEYTO EXPLORATION & DEVELOPMENT CORP. $4.00 (Toronto symbol PEY; Shares outstanding: 164.6 million; Market cap: $644.3 million; TSINetwork Rating: Extra Risk; Dividend yield: 6.0%; www.peyto.com) produces and explores for natural gas and oil in Alberta....

2 min read

Pat McKeough

Energy Stocks

Cost cuts are paying off

PARAMOUNT RESOURCES $6.87 (Toronto symbol POU; TSINetwork Rating: Speculative) (403-290-3600; www.paramountres.com; Shares outstanding: 130.9 million; Market cap: $943.2 million; No dividends paid) owns oil and gas properties in Alberta and B.C.

The company cut development spending to conserve cash due to low oil and gas prices....

1 min read

Pat McKeough

Energy Stocks

They’re setting themselves up for gains

CIMAREX ENERGY $49.76 (New York symbol XEC; TSINetwork Rating: Extra Risk) (303-295-3995; www.cimarex.com; Shares outstanding: 101.4 million; Market cap: $5.2 billion; Dividend yield: 1.6%) produces and explores for natural gas and oil....

2 min read

Pat McKeough

Energy Stocks

Falling costs cut Suncor’s cyclical risk

SUNCOR ENERGY INC. $42 (Toronto symbol SU; Conservative Growth Portfolio, Resources sector; Shares outstanding: 1.6 billion; Market cap: $67.2 billion; Price-to-sales ratio: 1.7; Dividend yield: 4.0%; TSINetwork Rating: Average; www.suncor.com) is Canada’s largest integrated oil company, with major projects in the Alberta oil sands....

2 min read

Pat McKeough

Energy Stocks

Aggressive stocks have a key role to play

Aggressive stocks, such as those featured in the portfolio on page 80, can lead to big returns. However, due to the risky or cyclical nature of their businesses, investment in higher-growth stocks can also produce big losses. That’s why you should limit your aggressive holdings to no more than about 30% of your overall portfolio.

We continue to like the long-term prospects of the best aggressive stocks....

7 min read

Pat McKeough

Energy Stocks

Buyback plan enhances value

ENCANA CORP. $6.54 (Toronto symbol ECA; Conservative Growth Portfolio, Resources sector; Shares outstanding: 1.4 billion; Market cap: $9.2 billion; P/S ratio: 1.6; Divd. yield: 1.5%; TSINetwork Rating: Average; www.encana.com) operates shale oil and natural gas wells in B.C., Alberta, Texas, Oklahoma, North Dakota and Utah.

The company plans to buy back up to $213 million U.S....

1 min read

Pat McKeough

Energy Stocks

Updates on TC Energy Inc., IBM & Encana Corp.

TC ENERGY INC. $65.98 (Toronto symbol TRP; Shares outstanding: 927.0 million; Market cap: $59.9 billion; TSINetwork Rating: Above Average; Dividend yield: 4.6%; www.transcanada.com) (formerly TransCanada Corp.) recently agreed to sell 85% of its Northern Courier Pipeline to Alberta Investment Management Corporation (AIMCo)....

2 min read

Pat McKeough

Energy Stocks

Pengrowth could be for sale

PENGROWTH ENERGY $0.50 (Toronto symbol PGF; Shares o/s: 547.4 million; Market cap: $280.0 million; TSINetwork Rating: Speculative; No dividends paid; www.pengrowth.com) has two main properties: its Lindbergh oil sands project in Alberta and its Groundbirch natural gas property in northeastern B.C.

Pengrowth’s average output in the three months ended March 31, 2019, rose 16.5%, to 22,764 barrels a day (82% oil and liquids, 18% natural gas) from 19,541 barrels a year earlier....

1 min read

Pat McKeough

Energy Stocks

Junior oil and gas stocks set for a rebound

CRESCENT POINT ENERGY $4.04 (Toronto symbol CPG; Shares outstanding: 547.2 million; Market cap: $2.2 billion; TSINetwork Rating: Extra Risk; Dividend yield: 1.0%; www.crescentpointenergy.com) produces oil and gas in western Canada and Utah, with a focus on its Bakken light oil development in southeastern Saskatchewan.

In the quarter ended March 31, 2019, Crescent’s average daily output fell 1.4%, to 175,955 barrels (91% oil, 9% gas) from 178,418 a year earlier....

2 min read

Pat McKeough

Energy Stocks

Devon gains focus

DEVON ENERGY $26.91 (New York symbol DVN; TSINetwork Rating: Extra Risk) (405-235-3611; www.dvn.com; Shares o/s: 415.2 million; Market cap: $10.7 billion; Dividend yield: 1.3%) is a leading explorer and producer of oil and natural gas in the U.S.

The company now plans to focus on four core areas in Oklahoma and West Texas.

As a result, it has agreed to sell almost all of its Canadian assets to Canadian Natural Resources for $2.8 billion U.S....

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.