Watch list
This week’s drone strikes that shut down Saudi Arabia’s oil production sent many Canadian oil stocks upwards.
The energy sector seems to be picking up more steam and investors are returning to the prospects of the industry. Analysts have been enthusiastic about energy recently, citing consistent cash-flow and decent yield.
Energy sector stocks also benefit from having a lot of institutional investors, giving their share prices more stability. We’ve seen the energy sector lag behind these past couple of years, but the prices look to be recovering, especially with geopolitical uncertainty.
The North American energy sector looks poised to take off in the near future.
🛢 Oil
Canadian Stocks
Suncor Energy Inc (SU-T)
Although Suncor is relatively expensive to its peers, they offer good cash flow and decent yield. The yield is over 4% and they have one of the best integrated operations and assets in Canada.
stockchase.com Canadian Natural Rsrcs (CNQ-T)
The stock is close to book value right now. In the low $30s, analysts look keen on buying it. The company is also buying back stocks aggressively with its large free cash flow.
stockchase.com Gran Tierra Energy Inc. (GTE-T)
The balance sheet is in good shape, and it is trading at half book value right now. They are also increasing production. Their core assets are in South America, and they are now looking at Mexico.
stockchase.com Baytex Energy Corp (BTE-T)
A Calgary based oil and natural gas company that received Top Pick by John Zechner. They have been paying down debt and about 60% of production gets a premium price. There are no dividends, but the company is expected to use their free cash flow to buy back lots of shares.
stockchase.com Husky Energy (HSE-T)
One of Canada’s largest integrated energy companies. They were trailing along at their 52-week low recently. They are expected to grow in China with more thermal projects over time. The stock is cheap and it should recover along with the whole sector.
stockchase.com Tourmaline Oil Corp (TOU-T)
The company is transitioning from dry natural gas into more liquids. A very well run company who is expected to trade at 2 times cash flow in a couple of years, when commodity prices rise.
stockchase.com Cardinal Energy Ltd (CJ-T)
A mainly oil producing company. They have been using their cash flow to pay down debt and financials look good. They cut dividends as prices came down when it was dragged down along with the rest of the sector.
stockchase.com Crescent Point Energy Corp (CPG-T)
An oil and gas company out of Calgary. They recently sold some assets in Utah and southeast Saskatchewan. They had quite a rally this month, though it’s now run into some resistance.
stockchase.com U.S. Stocks
Diamondback Energy (FANG-Q)
A company with a focus in the US Permian. As oil prices go back up, analysts expect this company to move first. They have a great inventory of over 7000 well locations.
stockchase.com CNOOC Limited (CEO-N)
China’s largest producer of offshore crude oil and natural gas. It is dual listed in the Hong Kong and the New York Stock Exchange. Rising oil prices will help advance this oil stock, although there is still some concern over the US-China trade war.
stockchase.com WPX Energy Inc. (WPX-N)
A petroleum and natural gas company. It is well run with assets in the Permian and the Bakker. The share price has not moved according to their fundamentals so there could be more upside when investors come back to the energy sector.
stockchase.com Pioneer Natural Resources (PXD-N)
An American petroleum, natural gas and LNG exploration and production company. The company has very little debt with the lowest finding costs in the Permian Basin.
stockchase.com EOG Resources Inc (EOG-N)
A Fortune 500 company that specializes in petroleum and natural gas exploration. It does have higher volatility because of the oil exposure, though it is quite well diversified with a lot of offshore assets. An international oil play.
stockchase.com Noble Energy Inc. (NBL-N)
A petroleum and natural gas exploration and production company. They have been rising steadily over the past months. More of the service side of the business.
stockchase.com Enterprise Products Partners L P (EPD-N)
A leading integrated provider of Natural Gas Liquids. They offer isomérisation services to produce mixed NGL products as well as their component products.
stockchase.com Matador Resources (MTDR-N)
An American oil and natural gas company that engages in exploration, development and acquisition of resources. It focuses on shale plays and other unconventional resource plays.
stockchase.com Southwestern Energy (SWN-N)
An exploration and production company in the natural gas and petroleum sector. It has the benefit of giving you exposure to both shale and conventional gas. It is a potential take-over candidate, according to some analysts.
stockchase.com Apache Corp (APA-N)
An independant energy company that specializes in natural gas, crude oil and natural gas liquids. It’s operations are focused in the Guld of Mexico, Permian Basin, Gulf Coast among other locations. It also has operations outside of North America.
stockchase.com Devon Energy Corp (DVN-N)
An independant natural gas, NGL and petroleum exploration company. They specialize in onshore exploration in North America. It has a particular exposure to the Canadian oil sand properties.
stockchase.com SM Energy Company (SM-N)
An American petroleum and natural gas exploration company out of Denver. An analyst said that SM Energy Company is part of the oil stocks whose prices have outrun the fundamentals with major gains.
stockchase.com Continental Resources (CLR-N)
An exploration and production company for petroleum and natural gas. They specialize in crude-oil concentrated, independent oil and natural gas. Their operations are in the Rocky Mountain, Mid-Continent and Gulf Coast regions in the US.
stockchase.com Cabot Oil & Gas (COG-N)
A low cost operator in petroleum, natural gas and NGL. The stock price has been under pressure from the shortage of pipelines in the region.
stockchase.com Oasis Petroleum Inc. (OAS-N)
The company has gone through transition and has changed the way they operate. They did a massively diluted share offering in late 2017 and they are still proving their competency.
stockchase.com Chesapeake Energy Corp. (CHK-N)
Highly leveraged though it is a good company. It has some great assets, and analysts are waiting for a sustained bull market in energy. It is range bound.
stockchase.com Denbury Resources (DNR-N)
A company who is primarily oil driven. They are exploring and developing assets in the Gulf Coast region.
stockchase.com Mexico Stocks
Anadarko Petroleum Corp (APC-N)
It has performed relatively better than Canadian oil stocks. They have good properties and good reserve life. Their price is reasonable and the question is how you think the commodity prices will go.
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