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.
Canadian bellwether stock. Good business in the long term. Is a good time to buy right now. Would recommend buying.
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.
Company trading at slight premium to Suncor. Low risk name trading at 15x cash flow. Expecting a ~$90 share price. Not enough return for risk in energy sector.
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.
Two years ago was adding energy. Believes new cycle is starting, so not constructive on energy. Energy gains have already been prices. Geopolitical conflict will end (oil prices will fall).
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.
(A Top Pick Nov 05/21, Up 77%) Very well run company that is paying down debt very quickly. Expecting final debt target at the end of the year. Trading at 24% cash flow yield. Expecting a 14% dividend yield (should be 10%). Share price could be $50 within the next year.
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.
Prefers Canadian mid-streams, like PPL or GEI, both of which are focused on cashflow. Both are approaching fair value, but are good candidates if your quest is a good dividend and dividend growth.
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.
Great quality company. CEO's done a good job by picking up assets on the cheap during Covid. Nat gas prices keep increasing, so TOU has a ton of cashflow. Special dividend increases yield to 5-6%. Should do well as long as nat gas does.
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 Feb 03/21, Up 160%) Not bullish on energy prices. Cautious on the name. Darling amongst energy stocks with excellent dividend yield. Very strong management.
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.
One of the world's largest integrated energy companies. 11.3B barrels of proven reserves, produces 3.1M barrels of oil per day. Last reporting blew away estimates. Focused on returning excess cash to shareholders, curtailing expenses. Free cashflow yield is 10+%. Recently broke above long-term technical resistance. Yield is 3.10%. (Analysts’ price target is $191.27)
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.
Oil is back to pre-Ukrainian invasion levels. So, there's no geopolitical risk priced into oil today. Energy is a cheap way to hedge against geopolitcal issues. Supply is constrained. OPEC did a laughable increase this week of only 100,000 barrels (the smallest ever). There are strong outflows from energy ETFs, so people are giving up…
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.
An inflation-protection trade: Energy is the obvious play. Kinder Morgan is a laggard in energy, though not directly tied to oil prices, but will benefit during this rally. Also likes Cleveland-Cliffs which reports tomorrow. Down from highs, but still very high and lifted by high steel prices. Upside here as the economy expands. Alaska Air.…
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.
Caller owns a lot of shares Sell half and take profits. Greed is bad. Be disciplined. Exxon is up huge.