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
CENOVUS ENERGY INC. $22 is a buy. Canada’s third-largest oil producer (Toronto symbol CVE; Conservative Growth Portfolio, Resources sector; Shares outstanding: 1.8 billion; Market cap: $39.6 billion; Price-to-sales ratio: 0.7; Dividend yield 3.3%; TSINetwork Rating: Average; www.cenovus.com) expects to spend between $4.5 billion and $5.0 billion in 2024 on exploration and upgrades.
Those investments will lift the company’s full-year output to between 785,000 and 810,000 barrels a day (its oil sands projects in Alberta account for 76% of that total)....
IMPERIAL OIL, $100.29, is a #1 Buy for 2024. The company (Toronto symbol IMO; Shares o/s: 523.4 million; Market cap: $53.6 billion; TSINetwork Rating: Average; Yield: 2.4%; www.imperialoil.ca) gets about 99% of its production from oil sands operations in Alberta....
OVINTIV INC., $59.96, is a buy. The energy producer (Toronto symbol OVV; Shares outstanding: 260.3 million; Market cap: $16.2 billion; TSINetwork Rating: Average; Dividend yield: 2.7%) operates four core oil and gas properties: Montney (B.C.), Permian (Texas), Anadarko (Oklahoma) and Uinta (Utah).
Ovintiv recently agreed to acquire certain assets in the Montney region from Paramount Resources Ltd....
Ovintiv recently agreed to acquire certain assets in the Montney region from Paramount Resources Ltd....
The shares of oil and gas stocks remain high as energy demand stays strong. We continue to recommend that most investors maintain some exposure to the oil and gas industry as part of a balanced portfolio. But, to cut risk, you should stick with producers that have positive cash flow even in times of low energy prices....
CENOVUS ENERGY, $22.57, is a buy for long-term gains. The company (Toronto symbol CVE; Shares outstanding: 1.8 billion; Market cap: $41.2 billion; TSINetwork Rating: Average; Dividend yield: 3.2%; www.cenovus.com) reported that its net debt (total debt less cash balances) fell to $4.0 billion in July 2024 from $5.06 billion at the end of 2023.
Under the company’s new shareholder return policy, once net debt falls to $4.0 billion, it will return 100% of its free cash flow (after capital expenditures) to shareholders in the form of higher dividends and share buybacks.
That bodes well for more dividend hikes....
Under the company’s new shareholder return policy, once net debt falls to $4.0 billion, it will return 100% of its free cash flow (after capital expenditures) to shareholders in the form of higher dividends and share buybacks.
That bodes well for more dividend hikes....
Oil and gas stocks moved up as the U.S. and other economies recovered after the pandemic. The war in Ukraine also spurred prices. Prices have softened lately on fears of slower global economies, but we still recommend that most investors maintain exposure to the oil and gas industry as part of a balanced portfolio....
IMPERIAL OIL LTD. $106 is a buy. The company (Toronto symbol IMO; Conservative and Income Growth Portfolios, Resources sector; Shares outstanding: 604.8 million; Market cap: $64.1 billion; Price-to-sales ratio: 1.2; Dividend yield: 2.3%; TSINetwork Rating: Average; www.imperialoil.ca) recently started producing oil at its Grand Rapids oil sands project (part of its Cold Lake site in northern Alberta), using steam and chemical solvents....
CENOVUS ENERGY INC. $24 is a buy. Canada’s third-largest oil producer (Toronto symbol CVE; Conservative Growth Portfolio, Resources sector; Shares o/s: 1.9 billion; Market cap: $45.6 billion; Price-to-sales ratio: 0.8; Dividend yield 3.0%; TSINetwork Rating: Average; www.cenovus.com) reported that its net debt (total debt less cash balances) fell to $4.0 billion in July 2024 from $5.06 billion at the end of 2023.
Under the company’s new shareholder return policy, once net debt falls to $4.0 billion, it will return 100% of its free cash flow (after capital expenditures) to shareholders in the form of higher dividends and share buybacks.
That bodes well for more dividend hikes....
OVINTIV INC. $58 is a buy. The energy producer (Toronto symbol OVV; Conservative Growth Portfolio, Resources sector; Shares outstanding: 264.1 million; Market cap: $15.3 billion; Price-to-sales ratio: 1.1; Dividend yield: 2.8%; TSINetwork Rating: Average; www.ovintiv.com) operates four core properties: Montney (B.C.), Permian (Texas), Anadarko (Oklahoma) and Uinta (Utah).
The company is now considering selling its Uinta operations, which account for about 5% of its overall production....
The company is now considering selling its Uinta operations, which account for about 5% of its overall production....
Like all natural-gas-weighted producers, Birchcliff will need gas prices to move higher in order to report stronger cash flow. However, we still like the long-term prospects for investors.
BIRCHCLIFF ENERGY, $5.54, is a buy. The company (Toronto symbol BIR; TSINetwork Rating: Speculative) (Shares outstanding: 269.3 million; Market cap: $1.5 billion; Dividend yield: 7.2%) develops and produces oil and gas, mainly in the Peace River Arch area of both Alberta and B.C....
BIRCHCLIFF ENERGY, $5.54, is a buy. The company (Toronto symbol BIR; TSINetwork Rating: Speculative) (Shares outstanding: 269.3 million; Market cap: $1.5 billion; Dividend yield: 7.2%) develops and produces oil and gas, mainly in the Peace River Arch area of both Alberta and B.C....