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.

[text_ad]

Read More Close

Energy Stocks Library Archives

Energy Stocks

New problem slows Syncrude

SUNCOR ENERGY INC. $41 (Toronto symbol SU; Conservative Growth Portfolio, Resources sector; Shares outstanding: 1.7 billion; Market cap: $69.7 billion; Price-to-sales ratio: 2.4; Dividend yield: 3.1%; TSINetwork Rating: Average; www.suncor.com) is Canada’s largest integrated oil company.

With a 53.74% stake, the company is also the biggest investor in Alberta’s Syncrude oil sands project.

In March 2017, an explosion and fire damaged the part of the Syncrude facility responsible for upgrading heavy oil....

1 min read

Pat McKeough

Energy Stocks

Better contracts lift ShawCor’s profit

SHAWCOR LTD. $29 (Toronto symbol SCL; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 69.9 million; Market cap: $2.0 billion; Price-to-sales ratio: 2.0; Dividend yield: 2.1%; TSINetwork Rating: Average; www.shawcor.com) makes sealants and coatings to keep oil and gas pipelines from rusting....

1 min read

Pat McKeough

Energy Stocks

Exploration jumps for these oil & gas buys

CRESCENT POINT ENERGY $11.72 (Toronto symbol CPG; Shares outstanding: 544.6 million; Market cap: $6.4 billion; TSINetwork Rating: Extra Risk; Dividend yield: 3.1%; www.crescentpointenergy.com) produces oil and natural gas in Western Canada. It is now focused on its Bakken light oil development in southeastern Saskatchewan....

2 min read

Pat McKeough

Energy Stocks

These four oil stocks cut your risk

Below are four oil producers that cut risk with their low costs and high-quality reserves. Although crude prices have moved down lately, we continue to recommend all investors maintain some exposure to oil stocks such as these.

SUNCOR ENERGY INC. $44 (Toronto symbol SU; Conservative Growth Portfolio, Resources sector; s/o: 1.7 billion; Market cap: $74.8 billion; Price-to-sales ratio: 2.5; Divd....

7 min read

Pat McKeough

Energy Stocks

Precision increases drilling activity

PRECISION DRILLING CORP. $5.23 (Toronto symbol PD; Aggressive Growth Portfolio, Resource sector; Shares outstanding: 293.2 million; Market cap: $1.5 billion; Price-to-sales ratio: 1.5; Dividend suspended in March 2016; TSINetwork Rating: Extra Risk; www.precisiondrilling....

1 min read

Pat McKeough

Energy Stocks

Updating Pengrowth Energy Corp., SNC-Lavalin Group Inc. and RioCan Real Estate Investment Trust

PENGROWTH ENERGY CORP. $1.18 (Toronto symbol PGF; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 547.7 million; Market cap: $646.3 million; Price-to-sales ratio: 1.1; Dividend suspended in January 2016; TSINetwork Rating: Speculative; www....

2 min read

Pat McKeough

Energy Stocks

Higher spending set to spur their production

ENCANA CORP. $14.89 (Toronto symbol ECA; Shares outstanding: 973.1 million; Market cap: $14.1 billion; TSINetwork Rating: Average; Dividend yield: 0.6%; www. encana.com) focuses its oil and natural gas production on four key projects: Montney (B.C.), Duvernay (Alberta), and Eagle Ford and Permian (both in Texas)....

2 min read

Pat McKeough

Energy Stocks

Updates on Cenovus Energy, Newmont Mining and TD Bank

CENOVUS ENERGY $13.32 (Toronto symbol CVE; Shares outstanding: 833.2 million; Market cap: $11.1 billion; TSINetwork Rating: Average; Dividend yield: 1.5%; www.cenovus.com) recently agreed to acquire full control of its main oil sands properties in Alberta.

In all, it will pay $17.7 billion, consisting of $14.1 billion in cash plus 208 million Cenovus common shares....

2 min read

Pat McKeough

Energy Stocks

Drillers profit from their technology

PASON SYSTEMS $19.58 (Toronto symbol PSI; TSINetwork Rating: Speculative) (403-301-3400; www.pason. com; Shares outstanding: 84.7 million; Market cap: $1.7 billion; Dividend yield: 3.5%) serves the drilling contractors for oil and gas firms in Canada, the U.S., Mexico and Argentina....

2 min read

Pat McKeough

Energy Stocks

Savvy moves set them up for a rebound

DEVON ENERGY CORP. $39.25 (New York symbol DVN; TSINetwork Rating: Extra Risk) (405-235-3611; www.dvn.com; Shares outstanding: 524.6 million; Market cap: $21.3 billion; Dividend yield: 0.6%) is one of the largest explorers and producers of oil and natural gas in the U.S....

2 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
The older I get the better dividends look. For retirees and would-be retirees who want to sleep at night, I can’t think of a better source of information on reliable growing dividend income than Pat McKeough’s newsletter, Dividend Advisor.

Jonathan Chevreau
Financial Post Columnist
As a manager of more than $500 million in mutual funds, I have access to the best brokerage research available in this country. But I still take time to read Pat McKeough’s premium newsletters

John Sartz
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.

Chuck J.
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.

Walter H.
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.