Oil Stocks Canada
We have been stuck for years in low oil prices, which have made it difficult for the oil and gas industry to prosper. On the other hand, falling global demand for oil combined with growing demand for green energy alternatives could spell the end of the industry. There is a good chance that the last oil supply will lead the world in terms of market value, but companies are novating and finding new ways to profit at the same time.
The fate of the oil and gas companies is inextricably linked to crude oil prices and a barrel of oil price. There was a time when oil stocks were on the verge of pariah status for many investors, such as tobacco, liquor and firearms manufacturers.
In recent months, there has been a bull market in the shares of some of Canada’s largest oil companies. Since October, the average share price of the four major oil companies in Canada – Suncor Energy Inc., Canadian Natural Resources Ltd., Imperial Oil Ltd. and the Calgary-based Cenovus Energy Inc. – has more than doubled since October. They are, on average more than 40 percent above their 2014 levels.
Canadian oil sands producers, who mine crude for bitumen by injecting steam and chemicals into the soil to separate bitumen from sand and then pump it to the surface, have achieved even higher prices than their more conventional counterparts. However, Canadian valuations have fallen due to deep and long-standing problems transporting crude oil cargoes from the oil-rich landlocked province of Alberta and the port of British Columbia to lucrative East Asian markets and logistical and capacity problems that will take longer to resolve.
Slowly, a semblance of normality is returning to global markets. However, the collapse of COVID-19, which, as in Russia at the beginning of 2020, was affected by OPEC’s agreement to support prevailing market prices, has taken the wind out of oil demand’s sails.
Because the lead time for developing new oil and gas installations is so long, oil companies cannot simply increase their supply in response to favourable market conditions. In addition, oil companies operating outside OPEC are also affected by oil prices because they do not have enough capital for new oil projects.
Invest in blue-chip oil and gas companies with adequate balance sheets that can weather boom-and-bust cycles. Conversely, don’t bet on subordinated oil and gas companies or penny stocks heavily indebted and have no proven track record.
If you want to invest in oil stocks but are unsure where to start, keep an eye on this list of the best oil and gas stocks available to buy in Canada. The Investing News Network has compiled a list of the top five Canadian oil and gas dividend stock with TradingView stock screeners. Here are 6 Canadian oil and gas stocks you should start with at this point. Do your own research and don’t take advice on how to buy a particular stock.
The top five Canadian oil and gas dividend stocks are listed below because they have a dividend yield of more than 3% and a leverage ratio (total capital divided by total liabilities) of 0 or less.
Canadian oil and gas stocks have enjoyed a rollercoaster ride in recent years, but many still offer high dividends to dividend investors. In addition, many of the leading oil and gas stocks on the TSX and TSXV have managed to achieve gains despite challenging market conditions in 2020 and 2021.
Analysts remain optimistic about the sector, and there are signs that Canadian oil and gas companies trade at a discount. In a research note entitled “The model looks too good to be true,” analysts from Peters & Co. wrote that the companies are on the verge of meeting their debt reduction targets and have begun enveloping free cash to billions of dollars.
He believes the market understates the growth prospects and cash flow potential of oil sands producers and midstream pipeline operators. He sees undervalued stocks, including Enbridge, Narrow Moat TC Energy and Canadian Natural Resources.
Orca Energy Group is an international energy company that develops, produces and sells natural gas resources in Africa and is a major natural gas supplier to Tanzania’s domestic energy market.
Suncor Energy Inc. (SUTO) is an integrated energy company focused on developing oil resources in the tar sands basins of Canada’s Athabasca. The company is active in the exploration, acquisition, development, production, raffination, transport and marketing of crude oil.
Imperial Oil (IMOTO) is an integrated company that operates in the exploration, production, refining, transportation and sale of crude oil and natural gas. Pipestone Energy Corp. (PIPTO) Pipestone is active in exploring, developing, and producing oil, natural gas, and liquids in western Canada. Tourmaline Oil Corp. acquires, explores, develops and produces oil and/or natural gas deposits in the Western Canadian sediment basins.
Oil sands extraction and treatment for the production of synthetic crude oil and bitumen and mining and processing. Oil companies are crucial to the global economy in its current structure. They provide fossil fuels for transport and energy and are a key component of the petrochemicals used to produce plastics and rubber.
The company transports and sells thermal oil to refineries in North America. Canadian Natural Resources is the largest exploration and production company for natural gas and crude oil in Canada. It produces synthetic crude oil, light to medium crude oil (bitumen) to primary heavy fuel oil and Pelican Lake heavy fuel oil.
Canadian Natural Resources operates a diversified portfolio of assets that includes a mix of natural gas, light crude oil, heavy crude oil and bitumen, and synthetic crude oil in North America, the United Kingdom, the North Sea and offshore Africa. The company’s business is classified as North America and International Marketing and Midstream. The company owns some of the best oil sands assets in the country, with in-situ thermal properties showing significant growth potential.