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

Updating Cameco Corp., Mitel Networks and Wyndham Worldwide

CAMECO CORP. $12.62 (Toronto symbol CCO; TSINetwork Rating: Extra Risk) (306-956-6200; www.cameco.com; Shares outstanding: 396.0 million; Market cap: $5.0 billion; Dividend yield 3.2%) is up 8% on heightened investor interest in it and other depressed uranium stocks....

2 min read

Pat McKeough

Energy Stocks

Enerflex expands its reach

ENERFLEX LTD. $18.47 (Toronto symbol EFX; TSINetwork Rating: Extra Risk) (403-387-6377; www.enerflex.com; Shares o/s: 88.2 million; Market cap: $1.6 billion; Dividend yield: 1.8%) will now pay Mesa Compression $106 million U.S. for its compression business.

The addition of Mesa’s 112,000 horsepower brings Enerflex’s global contract compression fleet to over 600,000 horsepower.

The acquisition is a small one for the company....

1 min read

Pat McKeough

Energy Stocks

Their high research spending pays off

PASON SYSTEMS $18.03 (Toronto symbol PSI; TSINetwork Rating: Speculative) (403-301-3400; www.pason.com; Shares outstanding: 84.8 million; Market cap: $1.5 billion; Dividend yield: 3.8%) serves drilling contractors for oil and gas firms in Canada, the U.S., Mexico and Argentina....

2 min read

Pat McKeough

Energy Stocks

Trilogy attracts a buyer

TRILOGY ENERGY $5.14 (Toronto symbol TET; TSINetwork Rating: Speculative) (403290-2900; www.trilogyenergy.com; Shares outstanding: 105.3 million; Market cap: $648.1 million; No dividends paid) has now agreed to a takeover offer from Paramount Resources (symbol POU on Toronto)....

1 min read

Pat McKeough

Energy Stocks

Increased exploration set to lift output

BELLATRIX EXPLORATION $3.12 (Toronto symbol BXE; TSINetwork Rating: Speculative) (403-266-8670; www.bellatrixexploration.com; Shares outstanding: 49.3 million; Market cap: $153.9 million; No dividends paid) produces natural gas (72% of output) and oil (28%) in Alberta, B.C....

2 min read

Pat McKeough

Energy Stocks

Focus on debt repayment cuts risk

PRECISION DRILLING CORP. $3.88 (Toronto symbol PD; Aggressive Growth Portfolio, Resource sector; Shares outstanding: 293.2 million; Market cap: $1.4 billion; Price-to-sales ratio: 1.1; Dividend suspended in March 2016; TSINetwork Rating: Extra Risk; www.precisiondrilling....

1 min read

Pat McKeough

Energy Stocks

Encana needs higher prices

ENCANA CORP. $11.13 (Toronto symbol ECA; Shares outstanding: 973.1 million; Market cap: $11.1 billion; TSINetwork Rating: Average; Dividend yield: 0.7%; www.encana.com) has four key properties: Montney (B.C.), Duvernay (Alberta), and Eagle Ford and Permian (both in Texas)....

1 min read

Pat McKeough

Energy Stocks

Two oil stocks: 1 buy & 1 hold

Oil prices have moved down lately, as higher production in the U.S. offsets cuts by OPEC. We still feel investors should maintain some exposure to oil, but you can cut your risk with integrated producers such as Chevron.

CHEVRON CORP. $104 (New York symbol CVX; Conservative Growth Portfolio, Resources sector; Shares outstanding: 1.9 billion; Market cap: $197.6 billion; Price-tosales ratio: 1.8; Dividend yield: 4.2%; TSINetwork Rating: Average; www.chevron.com) is the second-largest integrated oil company in the U.S....

2 min read

Pat McKeough

Energy Stocks

Buy Birchcliff, hold on to Trilogy

BIRCHCLIFF ENERGY $5.87 (Toronto symbol BIR; TSINetwork Rating: Speculative) (403-261-6401; www. birchcliffenergy.com; Shares outstanding: 263.0 million; Market cap: $1.6 billion; Dividends yield: 1.7%) explores for, develops and produces oil and gas, mainly in the Peace River Arch area of both Alberta and B.C....

2 min read

Pat McKeough

Energy Stocks

Sasol expands in China

SASOL LTD. (ADR) $28.68 (New York symbol SSL; TSINetwork Rating: Extra Risk) (082883-9697; www.sasol.com; ADRs outstanding: 651.4 million; Market cap: $19.6 billion; Dividend yield: 2.6%) has now started construction of its new alkoxylation plant in Nanjing, Jiangsu Province, China....

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.