Top Independents Operators Oil Stocks to Buy in 2019
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.
Opinion about SU.TO: Up 134%. Hold? Sell? Definitely continue to hold. Still sees quite a bit of upside. Has done quite well this year, after having…
Stockchase 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.
Opinion about CNQ.TO: Stockchase Research Editor: Michael O'Reilly As members of the US Administration expect a continuation of high energy prices…
Stockchase 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.
Opinion about GTE.TO: He prefers this to Parex Resources, which also drills in Columbia. GTE has a more significant growth profile. It has no problem…
Stockchase 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.
Opinion about BTE.TO: He doesn't have any intelligence on what's weighing on the stock. Trump wants lower oil prices, so he hasn't owned any of the…
Stockchase 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.
Opinion about HSE.TO: He likes it here. It has lows in August and September. Maybe it is going to get to $9.40-$9.50. It broke the steep downtrend…
Stockchase 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.
Opinion about TOU.TO: Really good management, building a strong company. Assets sales should bolster balance sheet. Needs stronger, sustained oil…
Stockchase 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.
Opinion about CJ.TO: He owns it in his RRSP because of the dividend. Company's done a decent job. Need oil prices to go up to bring excitement to the…
Stockchase 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.
Opinion about CPG.TO: Never a good sign when your stock issue gets hung up. Timing wasn't ideal, with weaker sentiment on oil below $80. New concerns…
Stockchase 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.
Opinion about FANG: He's bullish oil; just look at the Russian oil stocks. Diamondback is best in breed... The whole sector has a lot of room to move higher.
Stockchase 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.
Opinion about CEO: Oil price advances is going to help the advances of oil stocks. Chinese economy is likely to grow at an 8/8.5% for the next decade…
Stockchase 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.
Opinion about WPX: (A Top Pick March 23/17 - Up 5%.) US producers are up as they are not facing a discount on the price of oil.
Stockchase 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.
Opinion about PXD: Good cash flow and balance sheet. Oil prices will hold here for the next 18 months, and won't rise much.
Stockchase 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.
Opinion about EOG: The unique thing is their cost profile -- it is very low compared to peers. The trouble for CVE is getting their production out of…
Stockchase 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.
Opinion about NBL: A good Short? This is in the service side of the business. Global consumption of crude and natural gas is going to continue to…
Stockchase 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.
Opinion about EPD: A very good company. Many people own these master-limited partnerships and keep selling them; that's why EPD has been sell off.
Stockchase 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.
Opinion about MTDR: About a 3 billion-dollar market. They will come out of this year with about 22,000 barrels a day and will likely double their…
Stockchase 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.
Opinion about SWN: Very bullish outlook on gas and this will give you great exposure to gas. Well run and a tremendous track record in production…
Stockchase 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.
Opinion about APA: Low-price earnings multiple oil and gas. Haven't raised dividends very often so expect something here.
Stockchase 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.
Opinion about DVN: They just reported a strong quarter, perhaps one of the best in oil beating in earnings and oil production. Also, they raised…
Stockchase 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.
Opinion about SM: Energy company - oil and gas producer. He is looking for companies that are good quality, selling off and with volume picking up as…
Stockchase 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.
Opinion about CLR: (Market Call Minute.) A growthier oil company. Expert opinions on Continental Resources (CLR) — buy, sell, or hold ratings from…
Stockchase 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.
Opinion about COG: Sitting on 25 years of drilling inventory in the Marsalis shale play. This is a play that in the past 4 years has grown from a…
Stockchase 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.
Opinion about OAS: He likes them because they are early on in applying advancements in technology to increase recoveries in wells. They are using…
Stockchase 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.
Opinion about CHK: 9.5% bond to 2015, which he will hold to maturity. Discounted to 95. Oil/gas production. Have hedged out their gas and oil for the…
Stockchase Denbury Resources (DNR-N)
A company who is primarily oil driven. They are exploring and developing assets in the Gulf Coast region.
Opinion about DNR: Good mngmnt. Good prospect of growth/earnings. Expert opinions on Denbury Resources (DNR) — buy, sell, or hold ratings from…
Stockchase 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.
Opinion about APC: Have a good suite of assets. 5/7 X cash flow is the target. Expert opinions on Anadarko Petroleum Corp (APC) — buy, sell, or hold…
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