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

Its assets are an upside

DELPHI ENERGY $0.37 (Toronto symbol DEE; TSINetwork Rating: Speculative) (403-265-6171; www.delphienergy.ca; Shares o/s: 185.5 million; Market cap: $70.5 million) explores for, develops and produces oil and gas.

In the quarter ended September 30, 2018, Delphi’s cash flow jumped 52.7%, to $11.6 million, or $0.06 a share, from $7.6 million, or $0.04, a year earlier....

1 min read

Pat McKeough

Energy Stocks

Two energy producers, but just one is a buy

In response to weaker oil and natural gas prices, Encana has decided to aggressively expand in the U.S., while Cenovus is cutting its output.

We’re confident that both approaches will pay off. However, Encana’s big, newly announced acquisition increases its risk, which is why the stock dropped sharply on the news....

2 min read

Pat McKeough

Energy Stocks

Imperial looks to the future

IMPERIAL OIL LTD. $39.57 (Toronto symbol IMO; Shares outstanding: 795.8 million; Market cap: $30.4 billion; TSINetwork Rating: Average; Dividend yield: 1.9%; www.imperialoil.ca) is Canada’s third-largest publicly traded oil company, after Suncor (No....

1 min read

Pat McKeough

Energy Stocks

Higher spending set to boost their output

ENERPLUS CORP. $12.89 (Toronto symbol ERF; Shares outstanding: 245.3 million; Market cap: $3.1 billion; TSINetwork Rating: Speculative; Dividend yield: 0.9%) produces oil and gas from properties in Western Canada—Alberta, Saskatchewan and B.C.—as well as North Dakota and Montana....

2 min read

Pat McKeough

Energy Stocks

Deal targets Texas

CHESAPEAKE ENERGY $3.26 (New York symbol CHK; TSINetwork Rating: Speculative) (405-848-8000; www.chk.com; Shares outstanding: 913.7 million; Market cap: $3.0 billion; No dividends paid) will now buyHouston-based WildHorse Research Development Corp....

1 min read

Pat McKeough

Energy Stocks

Prime drilling prospects add promise

DEVON ENERGY CORP. $28.53 (New York symbol DVN; TSINetwork Rating: Extra Risk) (405-235-3611; www.dvn.com; Shares outstanding: 508.8 million; Market cap: $13.4 billion; Dividend yield: 1.1%) is one of the largest explorers and producers of oil and natural gas in the U.S....

2 min read

Pat McKeough

Energy Stocks

U.S. drilling surge spurs their sales

ENERFLEX LTD. $17.24 (Toronto symbol EFX; TSINetwork Rating: Extra Risk) (403-387-6377; www.enerflex.com; Shares outstanding: 88.8 million; Market cap: $1.5 billion; Dividend yield: 2.4%) rents and sells equipment and services for natural gas production....

2 min read

Pat McKeough

Energy Stocks

Encana buys a U.S. producer

ENCANA CORP. $11.47 (Toronto symbol ECA; Shares outstanding: 963.1 million; Market cap: $10.9 billion; TSINetwork Rating: Average; Dividend yield: 0.7%; www.encana.com) fell recently after it agreed to buy Newfield Exploration Company (New York symbol NFX).

Newfield operates shale oil and natural gas wells in the Stack and Scoop fields of Oklahoma, the Bakken region of North Dakota and Utah’s Uinta basin.

Encana will issue $5.5 billion U.S....

1 min read

Pat McKeough

Energy Stocks

Sale frees up cash for buybacks

CHEVRON CORP. $110 (New York symbol CVX; Conservative Growth Portfolio, Resources sector; Shares o/s: 1.9 billion; Market cap: $209.0 billion; Price-to-sales ratio: 1.5; Divd. yield: 4.1%; TSINetwork Rating: Average; www.chevron.com) continues to sell some of its less-important assets to focus on its main oil and gas operations.

As part of that plan, the company plans to sell its 40% stake in the Rosebank offshore oil discovery in the North Sea....

1 min read

Pat McKeough

Energy Stocks

Drilling rebound will spur their gains

MAJOR DRILLING $4.90 (Toronto symbol MDI; TSINetwork Rating: Speculative) (1-866-264-3986; www.majordrilling.com; Shares outstanding: 80.3 million; Market cap: $393.5 million; No dividends paid) is a large contract driller that mainly serves the mining industry.

Major believes that mining activity continues to deplete the world’s more easily accessible mineral reserves....

2 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.