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Highlights
- For Q2 2022, the net earnings of Canadian Natural Resources Limited were reported at C$ 3,502 million.
- For Q2 2022, the cash flow from operating activities for Cenovus Energy Inc. is noted at C$ 2,979 million.
- On August 10, 2022, Tourmaline Oil Corp. announced the acquisition of Rising Star Resources Ltd.
This year, the energy sector has outperformed its counterparts and reported a year-to-date (YTD) growth of 54.73 per cent. The economy may go through its share of ups and downs, but the energy sector is on the rise currently.
Canada is a net exporter of energy and, at the same time, is self-sufficient too. There are abundant of resources available to back this fact, like the TSX 60, constitutes approximately 21.67 per cent of energy stocks. Due to this, investors have a variety of stocks to choose from.
Investors should follow a balanced approach while working on their portfolio despite an upward trend. Along with growth, it is crucial to consider financials too. Considering all the factors gives a vantage view of the sector and hence brings you closer to your future goals. Let us analyze some of the energy stocks and study their financials.
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Canadian Natural Resources Limited (TSX:CNQ)
Canadian Natural Resources is a producer of oil and natural gas. The company's product range includes natural gas liquids and natural gas, medium oil, bitumen, light, and heavy oil.
In Q2 2022, the net earnings of the company was reported at C$ 3.5 billion as compared to C$ 3.1 billion as on March 31, 2022. There was an increase in the cash flow from operating activities to C$ 5,896 million from C$ 2,853 million for the same comparative period.
The quarterly dividend paid to the shareholders by Canadian Natural Resources Limited is C$ 0.75 per share with a dividend yield of 3.729 per cent. The five-year dividend growth has been 15.20 per cent. Further, the earnings per share (EPS) is reported at C$ 9.73
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Suncor Energy Inc. (TSX:SU)
Suncor Energy Inc. is an energy company that works with an integrated aspect. The company has several operations, including petroleum refining in the US and Canada, upgrading and production, and development of oil sands. Further, Suncor Energy Inc. operates its PetroCanada retail and wholesale distribution networks.
For Q2 2022, the net earnings for Suncor Energy Inc. were posted at C$ 3,996 million against C$ 868 million in the same quarter of the previous year.
There was a reduction in the net debt as of June 30, 2022, and it was reported at C$ 15,699 million compared to C$ 16,149 million on December 31, 2021.
Subsequently, there was an increase in the cash flow from operating activities which was reported at C$ 4,235 million as of June 30, 2022, as compared to C$ 2,086 million in the same quarter of the previous year. The quarterly dividend paid by Suncor Energy is C$ 0.47.
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Cenovus Energy Inc. (TSX:CVE)
Cenovus Energy is engaged in developing oil sand assets and generating creative value. Further, the company produces natural gas, natural gas liquids, and conventional crude oil in Alberta. Furthermore, the company has refining operations in the US.
For Q2 2022, the cash flow from operating activities for Cenovus is noted at C$ 2,979 million compared to C$ 1,365 million in Q1 2022. There was a reduction in net debt which was reported at C$ 7,535 million compared to C$ 8,407 million for the same comparative period.
As of June 30, 2022, the revenue was posted at C$ 10,103 million against C$ 9,712 million on March 31, 2022.
Cenovus offered a quarterly dividend of C$ 0.105 per share.
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Imperial Oil Limited (TSX:IMO)
Imperial Oil Limited focuses on refining and marketing petroleum products while simultaneously focusing on its upstream operation.
The net income for Q2 2022 was reported at C$ 2,409 million from C$ 366 million in the second quarter of 2021. The cash flows from operating activities were noted at C$ 2.6 billion, an increase from C$ 852 million in the same period of 2021. The EPS by the company was C$ 7.84, with a price-to-earnings (P/E) ratio of 8.7.
On June 23, 2022, Imperial Oil Limited declared its strategic agreement. This was done to advance a lithium-extraction pilot project in Alberta.
The below graph illustrates the total market capitalization of all the stocks mentioned.
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Tourmaline Oil Corp. (TSX:TOU)
Tourmaline is engaged in development, acquisition, production, and exploration of natural gas and crude oil. The company operates in the Western Canada Sedimentary Basin.
As of June 30, 2022, the net earnings for Tourmaline Oil Corp. were reported at C$ 822.94 million compared to C$ 420.84 million on June 30, 2021. The cash flow also increased to C$ 1,353.92 million from C$ 570.23 million for the same comparative period. The quarterly dividend paid to the shareholders was noted at C$ 0.225, and the three-year dividend growth was 58.38 per cent.
On August 10, 2022, Tourmaline Oil Corp. announced completing its acquisition of Rising Star Resources Ltd.
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Enbridge Inc. (TSX:ENB)
Enbridge Inc. is the owner of midstream assets that transport hydrocarbons. This is done across Canada and the US. The company's pipeline network includes natural gas and oil sands pipelines and the Canadian Mainline system.
As of June 30, 2022, the adjusted EBITDA was reported at C$ 3,715 million as compared to C$ 3,302 million at the same time of the previous year. There was a decrease in the adjusted earnings to C$ 1,350 million from C$ 1,357 million for the same comparative period. The quarterly dividend was C$ 0.86 per share with an EPS of C$ 2.41.
Bottom Line:
There is a rise in the energy sector, but volatility can be expected anytime. As an investor, move ahead with a positive yet practical approach. Take advantage of the current trends and align them with your goals. Along with pragmatism, it is essential to go for deep market research to select your stocks.
To add substantial value to your portfolio, ensure to follow diversification. It may prove to be a shield against fluctuating market trends.
Please note, the above content constitutes a very preliminary observation based on the industry and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.
