Catch Up on these Best 9 Canadian and 9 USA Natural Gas Stocks
Energy has taken a hit recently, but the outlook is looking better in the coming years. There are positive signals that are improving the future of the oil and gas sector, and the energy sector has made gains recently, rising 0.6%. Furthermore, oil prices are climbing once again, and the differential between Canadian and international oil prices are falling. If you can stomach some volatility, this could be a good position to hold longer term to get a healthy return.
⚡ Energy: Oil and Natural Gas
TransCanada Corp (TRP-T)
A major energy company out of Calgary that operates infrastructure in North America.They’ve increased dividends recently. It carries lower risk as a business since 95% of their revenues are regulated or from long-term contracts. The stock could go up greatly with the approval of the Keystone project, if it were to happen.
Does not own shares in the company.Huge cost overruns that make profits hard.Not a growth business.Share issuance's make it hard for business to prosper.Strong dividend yield does not make up for weak shareholder returns.
Husky Energy (HSE-T)
One of Canada’s largest integrated energy companies. It moves with oil prices. The stock has been experiencing higher highs and lows. Recently they stepped away from taking over MEG-T which surprised many investors. They have beat their earnings, and have an excellent balance sheet. For an energy stock, this is very defensive.
HSE-T + CVE-T: Stay after the merger? He does not own either one. He understands the merger makes sense. There are a lot of cost savings that can be found. He prefers CNQ-T, PXT-T and one of his Top Picks today. He prefers these to HSE-T. If the sector bounces back you could get an…
Imperial Oil (IMO-T)
Canada’s second-biggest integrated oil company. They are financially strong, and it could be a good time to get in, as their valuation has been reaching historic lows. Fundamentally, the company is very good, but concerns over the sector have beaten it down, making for an attractive buying opportunity.
Great job at meaningfully buying back stock. Setting bar high for return of capital to shareholders. Trading at premium to peers. Quality company that is a safe bet for long term shareholders.
Suncor Energy Inc (SU-T)
A company that specializes in production of synthetic crude from oil sands. They have a lot of growth potentially and are a low cost operator. They’ve been generating a lot of free cash flow. A premiere holding in Canadian energy.
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Investors have collectively decided that the banking crisis will cause a hard landing recession and thus a drop in oil demand. It is certainly one possibility, but it is also possible that it doesn't. Valuations look good for investors willing to look beyond a few months. Unlock…
Cenovus Energy (CVE-T)
An integrated oil company. They’re moving more oil by rail and the price is good. They have good exposure to WCS differentials, and the new CEO is repositioning the company. A good choice for those looking to get exposure in a large cap Canadian stock.
Energy shares on sale right now.Return of capital to shareholders strong business move.Economic slowdown will reduce oil prices.Would not invest in company.
Gibson Energy (GEI-T)
A supplier to the oil and gas industry. They are more of a pipeline company, with a refocusing on infrastructure. If oil continues to rise, this company will go up with it.
Simple, essential business. Tanks outside oil sands that put oil into pipelines. Amazing part of the energy complex. Has decided not to grow, therefore no market pressure from increasing capex. Will maintain profit margin through a difficult, inflationary time and compound those income streams. Great way to enhance a portfolio. Yield is 6.24%. (Analysts’ price…
Encana Corp (ECA-T)
A producer, transporter and marketer for natural gas, oil and natural gas liquids. They represent the entire Canadian energy patch. They bought a U.S. company last year and a combination of successfully integrating this company, and a rise in oil prices will push this stock up. They are experiencing strong volume now.
Just beat earnings and have increased production. Cheap valuation compared to peers. But it's getting more expensive heading into 2021. There's no growth here, but that goes with the entire oil patch. The real issue is will they survive. Their balance sheet is getting better, but still high for a blue-chip name. You'll be saved…
Tourmaline Oil Corp (TOU-T)
An independent natural gas producer. They are considering adding to their dividends or to buy back stocks, as they look forward to having more cash flow. Their balance sheet is good, and they have good managers. They are moving more liquid natural gas and building facilities.
LNG for the long run. Largest natural gas producer in Canada. One of the top 5 in NA. Selling over 20% of production outside Canada.
Canadian Natural Rsrcs (CNQ-T)
An oil and gas exploration, development and production company. They have great cash flow and they are expected to increase dividends next week. They are a flexible company that is well managed. They’v been focusing their operations on upgrading and refining oil in the last few years.
(A Top Pick Dec 09/22, Up 7%) Still owns shares in company.Continues to see upside in the company.Energy prices will remain strong.Target price of $92 per share.Two decades of increased dividend payments.Healthy yield of ~4.5%.Best in energy sector.
Chesapeake Energy Corp. (CHK-N)
An American petroleum and natural gas exploration and production company. They’re shares rose by 10% yesterday as the company beat profits as they move towards oil and away from gas. They recently acquired another company and are expected to produce more crude oil in 2019.
Probably a name he would hold or avoid, simply because it is so highly levered. A good company. It has some good assets. If you see a sustained bull market in energy, this could be fairly attractive. However he doesn’t think we are going to have a bull market in energy right now, so this…
Continental Resources (CLR-N)
A U.S. shale producer. They expect oilfield service costs to remain low due to weaker oil prices, but if you are bull-is on oil, this could be a good contrarian play. Their shale field output hit a record during third quarter 2018, and are expected to continue rise as they complete more wells.
This was the poster child for the US growth machine. But now they are in one of the worst places. Cut cap X program and will likely have to cut it again. Prefers Canadian oil stocks. Thinks there will still be revisions to CLR-N’s cash flow.
Cabot Oil & Gas (COG-N)
An independent oil and gas company engaged in development, exploitation and exploration. Their natural gas pipeline in the states has been given another chance with approval from the courts. They’ announced a quarterly profit helped by natural gas prices and increased production.
(Top Pick March 10/14, Down 14.12%) They are a lower cost operator. He sold this a couple of months after recommending it. Their challenge has been that their industry has been wildly successful in getting production growth and now there is a severe shortage of pipelines in the region so the price they sell for…
Chevron Texaco (CVX-N)
They manage subsidiaries that engage in integrated energy and chemicals operations. They’ve been matching estimates in the recent quarters and are in the middle of receiving bids for assets in the British North Sea.
Stockchase Research Editor: Michael O’Reilly As of end 2022, CVX was Warren Buffet’s third largest holding - $30 billion. The company is generating incredible cash flow as it benefits from its integrated portfolio from production to retail distribution. It trades at 10x earnings and under 2x book value and supports a 23% ROE. Cash reserves…
EOG Resources Inc (EOG-N)
A petroleum and natural gas exploration company. They are expecting to see a fourth quarter profit boost from oil and gas hedging. They are a shale oil producer that has weathered well the oil price drop. They topped profit estimates last year.
Kinder Morgan Inc. (KMI-N)
The largest energy infrastructure company in North America. Strong performance in its pipeline and terminal business helped their profits surge last quarter. They’re also working on building ports in Texas, as US oil export booms.
Dividend will grow slowly, and there's nothing wrong with that. Yield is around 5.5-6%, which is in line with other Canadian utilities are such as ENB and TRP. Also consider that if you're a Canadian resident holding dividends in taxable accounts, there's the dividend tax credit. US charges withholding taxes on US dividends. Not enough…
Noble Energy Inc. (NBL-N)
An independent energy company in crude oil, natural gas and NGLs. They’ve lowered their capital expense in response to a drop in crude oil prices and are aiming to return over $500 million to shareholders by 2020.
This all depends on what oil prices are going to do. $50 oil kind of keeps them going, but the costs are much higher than they are getting at the end of the day.
Southwestern Energy (SWN-N)
An energy company in natural gas and oil exploration, development and production. They sold their Fayetteville shale asset last year in a deal valued at about $1.87B.
options Energy continues to see action. This is trading at $8, buying 20,000 of the May 7 calls in order to get more leverage. They will move as the stock moves up. He remains very overweight energy.
Exxon Mobil (XOM-N)
An American multinational oil and gas corporation. They recently found another giant gas reservoir in Cyprus. Their reserves are up 23% from US shale. They’vealso outperformed estimates for Q4.