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

Birchcliff expands, while Trilogy waits

BIRCHCLIFF ENERGY $7.86 (Toronto symbol BIR; TSINetwork Rating: Speculative) (403-261-6401; www.birchcliffenergy.com; Shares outstanding: 152.3 million; Market cap: $1.2 billion; No dividends paid) explores for, develops and produces oil and gas, mainly in the Peace River Arch area near the Alberta-B.C....

2 min read

Pat McKeough

Energy Stocks

Devon lightens debt load

DEVON ENERGY CORP. $39.00 (New York symbol DVN; TSINetwork Rating: Speculative) (405-235-3611; www.dvn.com; Shares outstanding: 524.0 million; Market cap: $21.0 billion; Dividend yield: 0.6%) continues to sell its non-core properties to pay down debt and strengthen its balance sheet....

1 min read

Pat McKeough

Energy Stocks

Updating Sasol Ltd. (ADR), Intact Financial and Leon’s Furniture Ltd.

SASOL LTD. (ADR) $27.17 (New York symbol SSL; TSINetwork Rating: Extra Risk) (082-883-9697; www.sasol.com; ADRs o/s: 651.4 million; Market cap: $18.9 billion; Dividend yield: 2.8%) has developed a technology to convert coal and natural gas into motor fuels....

2 min read

Pat McKeough

Energy Stocks

Sasol Ltd. (ADR) - New York symbol SSL

1 min read

Pat McKeough

Energy Stocks

Trilogy Energy Corp. $6.17 - Toronto symbol TET

TRILOGY ENERGY CORP. $6.17 (Toronto symbol TET; TSINetwork Rating: Speculative) (403-290-2900; www.trilogyenergy.com; Shares outstanding: 105.3 million; Market cap: $813.3 million; No dividends paid) owns oil and gas properties in central Alberta’s Kaybob and Grande Prairie areas....

1 min read

Pat McKeough

Energy Stocks

Birchcliff Energy $7.86 - Toronto symbol BIR

1 min read

Pat McKeough

Energy Stocks

Sale frees up cash for debt repayment

ENCANA CORP. $10 (Toronto symbol ECA; Conservative Growth Portfolio, Resources sector; Shares outstanding: 849.9 million; Market cap: $8.5 billion; Price-to-sales ratio: 2.2; Dividend yield: 0.8%; TSINetwork Rating: Average; www.encana.com) will complete the sale of its oil and gas properties in Colorado’s DJ Basin by July 31, 2016....

1 min read

Pat McKeough

Energy Stocks

Encana sharpens its focus

ENCANA $10.53 (Toronto symbol ECA; Shares outstanding: 849.9 million; Market cap: $9.0 billion; TSINetwork Rating: Average; Dividend yield: 0.7%; www.encana.com) will sell its Gordondale land and infrastructure in northwestern Alberta to Birchcliff Energy Ltd....

1 min read

Pat McKeough

Energy Stocks

Strategies for surviving the oil plunge

ENERPLUS CORP. $8.69 (Toronto symbol ERF; Shares outstanding: 207.1 million; Market cap: $2.1 billion; TSINetwork Rating: Speculative; Dividend yield: 1.4%) produces oil and gas from properties in Alberta, Saskatchewan, B.C., North Dakota and Montana, as well as in the Marcellus Shale....

2 min read

Pat McKeough

Energy Stocks

Updating Imperial Oil Ltd., Cenovus Energy and Telus Corp.

IMPERIAL OIL LTD. $41 (www.imperialoil.ca) gets roughly a third of its production from its 71%-owned Kearl oil sands project, 70 kilometres north of Fort McMurray, Alberta. ExxonMobil (New York symbol XOM) holds the remaining 29%; Exxon also owns 69.9% of Imperial....

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.