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

Exploration spending to boost output

BIRCHCLIFF ENERGY $8.02 (Toronto symbol BIR; TSINetwork Rating: Speculative) (403-261-6401; www. birchcliffenergy.com; Shares outstanding: 263.0 million; Market cap: $2.1 billion; Dividends yield: 1.2%) explores for, develops and produces oil and gas, mainly in the Peace River Arch area of both Alberta and B.C.

In the three months ended December 31, 2016, Birchcliff’s cash flow per share rose 22.7%, to $0.27 from $0.22 a year earlier....

2 min read

Pat McKeough

Energy Stocks

New pipelines a plus for these oil producers

Ottawa recently approved a plan to double capacity on the Trans Mountain pipeline, which pumps crude oil from Alberta to Vancouver. As well, U.S. President Donald Trump has signed an executive order giving conditional approval to TransCanada’s proposed Keystone XL pipeline....

4 min read

Pat McKeough

Energy Stocks

Pason adds software

PASON SYSTEMS $19.32 (Toronto symbol PSI; TSINetwork Rating: Speculative) (403301-3400; www.pason.com; Shares outstanding: 84.4 million; Market cap: $1.7 billion; Dividend yield: 3.5%) serves oil and gas firms, and drilling contractors throughout Canada, the U.S., Mexico and Argentina....

1 min read

Pat McKeough

Energy Stocks

Delphi Energy aims high

DELPHI ENERGY $1.65 (Toronto symbol DEE; TSINetwork Rating: Speculative) (403-2656171; www.delphienergy.ca; Shares outstanding: 155.6 million; Market cap: $259.8 million; No dividends paid) explores for, develops and produces oil and natural gas. About 64% of its output is gas; the remaining 36% is oil.

The company plans to double its exploration and development activity this year with the addition of a second drilling rig....

1 min read

Pat McKeough

Energy Stocks

IMO can live with this risk

IMPERIAL OIL LTD. $46 (Toronto symbol IMO; Conservative Growth and Income Portfolios, Shares outstanding: 847.6 million; Market cap: $39.0 billion; Price-to-sales ratio: 1.7; Dividend yield: 1.3%; TSINetwork Rating: Average; www.imperialoil.ca) is Canada’s second-largest publicly traded oil company, after Suncor Energy....

1 min read

Pat McKeough

Energy Stocks

Bonavista is the better buy right now

PENGROWTH ENERGY $1.95 (Toronto symbol PGF; Shares outstanding: 547.4 million; Market cap: $1.1 billion; TSINetwork Rating: Speculative; No dividends paid; www.pengrowth.com) produces oil and natural gas, mostly in Western Canada. This includes its Lindbergh oil sands project in the Cold Lake area of Alberta.

In the three months ended September 30, 2016, the company’s average output was 55,137 barrels of oil equivalent per day (61% oil and 39% gas)....

2 min read

Pat McKeough

Energy Stocks

Asset sales lift earnings

IMPERIAL OIL $46.86 (Toronto symbol IMO; Shares outstanding: 847.6 million; Market cap: $39.7 billion; TSINetwork Rating: Average; Dividend yield: 1.3%; www.imperialoil.ca) is Canada’s third-largest publicly traded oil company, after Suncor Energy (No. 1) and Canadian Natural Resources (No....

1 min read

Pat McKeough

Energy Stocks

Two energy producers ready to soar

DEVON ENERGY CORP. $47.02 (New York symbol DVN; TSINetwork Rating: Extra Risk) (405-2353611; www.dvn.com; Shares outstanding: 523.6 million; Market cap: $25.2 billion; Dividend yield: 0.5%) is one of the largest explorers and producers of oil and natural gas in the U.S....

2 min read

Pat McKeough

Energy Stocks

Asset sales pay off

CHESAPEAKE ENERGY $7.08 (New York symbol CHK; TSINetwork Rating: Speculative) (405-848-8000; www.chk.com; Shares outstanding: 887.4 million; Market cap: $6.5 billion; No dividends paid) continues sell non-core assets to focus on its low-risk, highreturn properties....

1 min read

Pat McKeough

Energy Stocks

Suncor beats the CRA

SUNCOR ENERGY INC. $43 (Toronto symbol SU; Conservative Growth Portfolio, Resources sector; Shares outstanding: 1.7 billion; Market cap: $73.1 billion; Price-to-sales ratio: 2.8; Dividend yield: 2.7%; TSINetwork Rating: Average; www.suncor.com) has successfully resolved a dispute with the Canadian Revenue Agency (CRA).

In 2013, the CRA challenged the company’s use of hedging losses to reduce taxes on its 29.9% share of the Buzzard offshore oil field in the North Sea....

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.