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

Resource service firms to power your returns

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, $6.86, is a buy. The company (Toronto symbol CMG; TSINetwork Rating: Extra Risk) (www.cmgl.ca; Shares outstanding: 82.5 million; Market cap: $566.2 million; Dividend yield: 2.9%) offers software and consulting services to help conventional oil and gas producers create 3D models of reservoirs....

2 min read

Pat McKeough

Energy Stocks

High-quality reserves will drive your returns

Despite the negative impact of U.S. tariffs on Canadian oil imports, the long-term outlook for Cenovus is bright. The company’s high-quality reserves will last 29 years, and its rising production will give it more cash to reward shareholders with higher dividends and share buybacks.

CENOVUS ENERGY INC....

2 min read

Pat McKeough

Energy Stocks

New assets should spur Ovintiv

Ovintiv recently increased its presence in B.C.’s Montney region. Combined with its other high-quality properties and focus on cutting its drilling and other costs, the company is in a strong position to increase its cash flow.

OVINTIV INC. $56 is a buy. The company (Toronto symbol OVV; Conservative Growth Portfolio, Resources sector; Shares outstanding: 261.1 million; Market cap: $14.6 billion; Price-to-sales ratio: 1.1; Dividend yield: 2.9%; TSINetwork Rating: Average; www.ovintiv.com) operates three core properties: Montney (B.C.), Permian (Texas) and Anadarko (Oklahoma)....

2 min read

Pat McKeough

Energy Stocks

Diversify with these two energy 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....

2 min read

Pat McKeough

Energy Stocks

Record output for Suncor

SUNCOR ENERGY INC. $47 is a buy. Canada’s largest integrated oil producer (Toronto symbol SU; Conservative Growth Portfolio, Resources sector; Shares outstanding: 1.2 billion; Market cap: $56.4 billion; Price-to-sales ratio: 1.1; Dividend yield: 4.9%; TSINetwork Rating: Average; www.suncor.com) produced a record 853,200 barrels a day in the first quarter of 2025, up 2.1% from 835,300 barrels a year earlier....

1 min read

Pat McKeough

Energy Stocks

Refineries lift 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....

1 min read

Pat McKeough

Energy Stocks

Imperial expands its output

IMPERIAL OIL LTD., $92.99, is a buy. The company’s (Toronto symbol IMO; Shares outstanding: 509.0 million; Market cap: $48.9 billion; TSINetwork Rating: Average; Dividend yield: 3.1%; www.imperialoil.ca) crude oil exports to the U.S. comply with the USMCA (U.S.-Mexico-Canada trade agreement), so they remain exempt from U.S....

1 min read

Pat McKeough

Energy Stocks

Oil producers shrink to fuel new growth

These oil producers are shifting their focus to more-promising projects and cutting costs. However, we feel Chevron is the better pick for your new buying.

CHEVRON CORP. $137 is a buy. The company (New York symbol CVX; Conservative Growth Portfolio, Resources sector; Shares outstanding: 1.8 billion; Market cap: $246.6 billion; Price-to-sales ratio: 1.3; Dividend yield: 5.0%; TSINetwork Rating: Average; www.chevron.com) is the second-largest integrated oil producer in the U.S....

2 min read

Pat McKeough

Energy Stocks

Better efficiency is set to pay off

CENOVUS ENERGY INC. $17 is a buy. Canada’s third-largest oil producer (Toronto symbol CVE; Conservative Growth Portfolio, Resources sector; Shares outstanding: 1.8 billion; Market cap: $30.6 billion; Price-to-sales ratio: 0.5; Dividend yield 4.2%; TSINetwork Rating: Average; www.cenovus.com) expects to spend between $4.6 billion and $5.0 billion on exploration and upgrades in 2025.

Part of that spending will go toward improving the reliability of its refineries, particularly those in Lima and Toledo, Ohio....

1 min read

Pat McKeough

Energy Stocks

Lower costs will offset lower demand

IMPERIAL OIL LTD. $91 is a buy. The integrated oil producer (Toronto symbol IMO; Conservative and Income Growth Portfolios, Resources sector; Shares outstanding: 523.4 million; Market cap: $47.6 billion; Price-to-sales ratio: 1.9; Dividend yield: 3.2%; TSINetwork Rating: Average; www.imperialoil.ca) is down 7% in the past month, mainly due to concerns that brewing tariff wars will trigger a global economic slowdown and depress oil demand.

However, Imperial’s investments in more cost-efficient extraction techniques should help offset the impact of lower prices....

1 min read

Pat McKeough

Testimonials

The cornerstones of Pat’s strategy–value, diversification and timelines–make his newsletter, The Successful Investor, highly profitable while minimizing risk. His advice is no-nonsense, down-to-earth and based on solid research. You’ll know what to invest in and what to avoid.

Chuck Chakrapani, PhD
Investors Association of Canada
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I appreciate the 25 years of above market returns I received by following your advice. at least 95% of my investment decisions were based on TSI recommendations.

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Subscriber since 1996. Inner Circle Member Since 2006
The newsletters I receive in Inner Circle Pro are fantastic! I have been following Pat’s advice for years and everything he has said has been amazing. His commentaries are brilliant, insightful, educational, rational and balanced. My returns are almost double the TSE and I have referred many of my friends who have switched over to your services.

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Inner Circle Pro subscriber

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.