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

Drillers prepare for next oil & gas boom

DEVON ENERGY CORP. $42.17 (New York symbol DVN; TSINetwork Rating: Speculative) (405-235- 3611; www.dvn.com; Shares outstanding: 523.6 million; Market cap: $21.3 billion; Dividend yield: 0.6%) is one of the largest U.S.-based oil and natural gas explorers and producers....

2 min read

Pat McKeough

Energy Stocks

Encana forecasts big jump in output

ENCANA CORP. $12 (Toronto symbol ECA; Conservative Growth Portfolio, Resources sector; Shares outstanding: 849.9 million; Market cap: $10.2 billion; Price-to-sales ratio: 3.1; Dividend yield: 0.7%; TSINetwork Rating: Average; www.encana.com) continues to focus on its four main shale gas properties: Montney (B.C.), Duvernay (Alberta), and Eagle Ford and Permian (both in Texas)....

1 min read

Pat McKeough

Energy Stocks

Bonavista Energy $3.47 - Toronto symbol BNP

BONAVISTA ENERGY $3.47 (Toronto symbol BNP; Shares outstanding: 248.5 million; Market cap: $884.9 million; TSINetwork Rating: Extra Risk; Dividend yield: 1.2%; www.bonavistaenergy.com) explores for oil and gas in Alberta, Saskatchewan and B.C. Its output is 69% gas and 31% oil.

In the quarter ended June 30, 2016, Bonavista’s cash flow per share fell 38.6%, to $0.27 from $0.44 a year earlier....

1 min read

Pat McKeough

Energy Stocks

Pengrowth Energy $1.89 - Toronto symbol PGF

PENGROWTH ENERGY $1.89 (Toronto symbol PGF; Shares outstanding: 547.4 million; Market cap: $1.1 billion; TSINetwork Rating: Average; No dividends paid; www.pengrowth.com) produces oil and natural gas, mostly in Western Canada. This includes its Lindbergh oil sands project in Alberta....

1 min read

Pat McKeough

Energy Stocks

Updating Buckeye Partners L.P. and Ameren Corp.

BUCKEYE PARTNERS L.P. $70 (www.buckeye.com) operates 9,600 kilometres of pipelines in the northeastern and midwestern U.S. Its network pumps gasoline, jet fuel and other petroleum products. The partnership also owns oil and gas storage terminals. Buckeye continues to benefit from oil producers that opt to store their crude instead of selling it at today’s low prices....

1 min read

Pat McKeough

Energy Stocks

Updating Fortis Inc. and Pengrowth Energy Inc.

FORTIS INC. $43 (www.fortisinc.com) operates power plants in Canada, the U.S. and the Caribbean. It’s now buying ITC Holdings Corp. (New York symbol ITC) for $11.3 billion U.S. This firm owns 25,100 kilometres of high-voltage power lines in the U.S....

1 min read

Pat McKeough

Energy Stocks

Suncor adds to its North Sea operations

SUNCOR ENERGY INC. $36 (Toronto symbol SU; Conservative Growth Portfolio, Resources sector; Shares outstanding: 1.7 billion; Market cap: $61.2 billion; Price-to-sales ratio: 2.3; Dividend yield: 3.2%; TSINetwork Rating: Average; www.suncor.com) has agreed to take a 30% stake in the Rosebank offshore oil project....

1 min read

Pat McKeough

Energy Stocks

Crescent Point Energy $19.36 - Toronto symbol CPG

CRESCENT POINT ENERGY $19.36 (Toronto symbol CPG; Shares outstanding: 506.3 million; Market cap: $9.5 billion; TSINetwork Rating: Extra Risk; Dividend yield: 1 . 9 % ; www.crescentpointenergy.com) produces oil and natural gas in Western Canada, with a focus on its Bakken light oil development in southeastern Saskatchewan....

1 min read

Pat McKeough

Energy Stocks

Peyto Exploration & Development Corp. $36.36 - Toronto symbol PEY

PEYTO EXPLORATION & DEVELOPMENT CORP. $36.36 (Toronto symbol PEY; Shares outstanding: 164.6 million; Market cap: $6.0 billion; TSINetwork Rating: Extra Risk; Dividend yield: 3.6%; www.peyto.com) produces and explores for oil and natural gas in Alberta....

1 min read

Pat McKeough

Energy Stocks

Chevron: Our top oil pick

Oil prices fell below $30 a barrel in early 2016, but recently have rebounded to over $45. That’s mainly because producers have slowed their output in order to lower their expenses. We expect prices will continue to recover as inventories shrink and demand remains steady.

Chevron is among those companies that have cut their operating costs....

4 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.