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

Cenovus doubles in size

CENOVUS ENERGY $15.11 (Toronto symbol CVE; Shares outstanding: 833.2 million; Market cap: $12.4 billion; TSINetwork Rating: Average; Dividend yield: 1.3%; www.cenovus.com) took a big drop after its recent deal to acquire control of its main oil sands properties in Alberta.

However, that acquisition more than doubles the company’s output and positions it for strong future growth.

Right now, Cenovus already owns 50% of the Christina Lake and Foster Creek oil sands projects; ConocoPhilips (New York symbol COP) owns the other 50%.

The company has agreed to buy ConocoPhillips’ interest in both Alberta properties, along with ConocoPhillips’ conventional oil fields in that province and B.C.

The total cost is $17.7 billion....

1 min read

Pat McKeough

Energy Stocks

Production increases set to boost cash flow

ENERPLUS CORP. $10.73 (Toronto symbol ERF; Shares outstanding: 241.0 million; Market cap: $2.6 billion; TSINetwork Rating: Speculative; Dividend yield: 1.1%) produces oil and gas from properties in Western Canada—Alberta, Saskatchewan and B.C.—as well as North Dakota and Montana in the western U.S....

2 min read

Pat McKeough

Energy Stocks

Pengrowth cuts its debt

PENGROWTH ENERGY $1.37 (Toronto symbol PGF; Shares outstanding: 547.4 million; Market cap: $750.4 million; TSINetwork Rating: Average; No dividends paid; www.pengrowth. com) has agreed to sell part of its Swan Hills properties in northern Alberta for $180 million....

1 min read

Pat McKeough

Energy Stocks

High-quality reserves cut Chevron’s risk

CHEVRON CORP. $108 (New York symbol CVX; Conservative Growth Portfolio, Resources sector; Shares outstanding: 1.9 billion; Market cap: $205.2 billion; Price-tosales ratio: 2.0; Dividend yield: 4.0%; TSINetwork Rating: Average; www.chevron.com) is the second-largest integrated oil company in the U.S....

2 min read

Pat McKeough

Energy Stocks

Sasol cuts its risk

SASOL LTD. (ADR) $28.69 (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%) is South Africa’s third-largest coal producer and is the world’s largest maker of fuel from coal.

In its fiscal 2017 first half, ended December 31, 2016, Sasol’s revenue fell 2.2%, to $6.06 billion from $6.20 billion a year earlier....

1 min read

Pat McKeough

Energy Stocks

Reduced debt will spur their output

BELLATRIX EXPLORATION $0.97 (Toronto symbol BXE; TSINetwork Rating: Speculative) (403-266-8670; www.bellatrixexploration.com; Shares outstanding: 237.5 million; Market cap: $244.1 million; No dividends paid) produces natural gas (72% of output) and oil (28%) in Alberta, B.C....

2 min read

Pat McKeough

Energy Stocks

Gains ahead for these energy stocks

Dear client,

We recommend that most investors maintain some exposure to the Resources sector as part of a well-balanced portfolio.

To further cut your risk, you should focus on well-established producers with high-quality reserves such as Encana and Cenovus.

In response to the big drop in oil prices—from a high of $110 U.S....

4 min read

Pat McKeough

Energy Stocks

Updating Pengrowth Energy Corp., Teck Resources Ltd. and Agrium Inc.

PENGROWTH ENERGY CORP. $1.53 (Toronto symbol PGF; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 547.7 million; Market cap: $838.0 million; Price-to-sales ratio: 1.6; Dividend suspended in January 2016; TSI Network Rating: Speculative; www.pengrowth.com) produces oil and natural gas, mostly in Western Canada....

2 min read

Pat McKeough

Energy Stocks

A boost in exploration spurs these producers

CRESCENT POINT ENERGY $15.20 (Toronto symbol CPG; Shares outstanding: 541.7 million; Market cap: $7.9 billion; TSINetwork Rating: Extra Risk; Dividend yield: 2.4%; 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

Imperial cuts its debt

IMPERIAL OIL $41.07 (Toronto symbol IMO; Shares outstanding: 847.6 million; Market cap: $35.2 billion; TSINetwork Rating: Average; Dividend yield: 1.5%; www.imperialoil.ca) is Cana da’s third-largest publicly traded oil company, after Suncor Energy (No. 1) and Canadian Natural Resources (No....

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.