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
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....
SUNCOR ENERGY INC. $49 is a buy. The company (Toronto symbol SU; Conservative Growth Portfolio, Resources sector; Shares outstanding: 1.3 billion; Market cap: $63.7 billion; Price-to-sales ratio: 1.2: Dividend yield: 4.4%; TSINetwork Rating: Average; www.suncor.com) is using self-driving trucks at its oil sands projects in Alberta to cut its production costs....
The shares of oil and gas stocks remain high as energy demand stays strong. It bears repeating that most investors should 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....
OVINTIV INC., $55.19, is a buy. The energy producer (Toronto symbol OVV; Shares outstanding: 267.0 million; Market cap: $14.5 billion; TSINetwork Rating: Average; Dividend yield: 2.9%) operates four core properties: Montney (B.C.), Permian (Texas), Anadarko (Oklahoma) and Uinta (Utah).
In June 2023, the company paid private equity firm EnCap Investments $4.4 billion for 1,050 wells in the Permian basin (all amounts except share price in U.S....
We continue to recommend you maintain some exposure to oil stocks as part of the Resources portion of your stock holdings. High-quality integrated producer Imperial Oil is up 24% since we made it a #1 Buy for 2024. With its record oil production and its stock now trading at low multiples to its cash flow, Imperial is even more attractive for your new buying.
IMPERIAL OIL LTD., $96.04, is a #1 Buy for 2024. The company (Toronto symbol IMO; Shares o/s: 535.8 million; Market cap: $51.5 billion; TSINetwork Rating: Average; Dividend yield: 2.5%) gets over 90% of its production from the oil sands of Alberta....
OVINTIV INC. $58 is a buy. The company (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).
Ovintiv continues to allocate 50% of its free cash flow (regular cash flow less capital)—forecast to rise 65% for 2024 to $1.90 billion U.S.—to dividends and share buybacks....
Ovintiv continues to allocate 50% of its free cash flow (regular cash flow less capital)—forecast to rise 65% for 2024 to $1.90 billion U.S.—to dividends and share buybacks....
CENOVUS ENERGY, $27.82, is a buy for long-term gains. The company (Toronto symbol CVE; Shares outstanding: 1.9 billion; Market cap: $50.4 billion; TSINetwork Rating: Average; Dividend yield: 2.6%; www.cenovus.com) has evacuated some of the workers at its Sunrise oil sands project due to wildfires in Northern Alberta.
Even so, the facility continues to operate at normal levels....
Even so, the facility continues to operate at normal levels....
DEVON ENERGY, $48.65, is a buy. The company (New York symbol DVN; TSINetwork Rating: Extra Risk) (www.dvn.com; Shares outstanding: 627.6 million; Market cap: $30.3 billion; Dividend yield: 4.2%) is one of the largest explorers and producers of oil and gas in the U.S.
Devon continues to use acquisitions to expand operations in its core areas....
Devon continues to use acquisitions to expand operations in its core areas....
We continue to advise that all investors maintain some exposure to the oil and gas industry. To further cut your risk, stick with integrated producers like Suncor and Imperial oil, particularly as their cost-cutting plans should give them more room for dividend increases.
SUNCOR ENERGY INC....
SUNCOR ENERGY INC....