Top oil & gas stocks to buy in July as prices rocket

Gas prices climbed to a record high of C$ 1.74 per litre in Vancouver on Friday, July 2. In Ontario, meanwhile, gas was priced at an average of $1.35 per litre. Earlier, the prices jumped 5.5 cents per litre in Newfoundland and some parts of Labrador.

Oil prices have been increasing dramatically in Canada. As COVID-19 restrictions are slowly lifted, the prices may climb further up this year.

Before that happens, here are five oil and gas stocks you could consider exploring for investment.

Tourmaline Oil Corp. (TSX:TOU)

TOU stock climbed 107.5 per cent year-to-date (YTD) as the company geared into expansion mode.

On June 11, 2021, Tourmaline announced that it will acquire Black Swan Energy Ltd. for C$ 1.1 billion. This deal is expected to increase the oil and gas company's production capacity and current assets.

The company claims to be the largest natural gas producer in Canada. Tourmaline offers an 11.04 per cent return on equity (ROE) and pays a quarterly dividend of C$ 0.16 per unit to the shareholders. In the first quarter of 2021, Tourmaline achieved record cash flows of C$ 629.3 million.

Its stock soared 186 per cent in the last twelve months, outpacing the Toronto Stock Exchange 300 Composite Index's growth of 121 per cent.

Enbridge Inc. (TSX:ENB)

This energy company, engaged in the production and distribution of oil and natural gas, has been in the business for 170 years. Enbridge is said to deliver natural gas to over two million users in Ontario alone.

The oil and gas player is also among the top dividend-paying companies in Canada. Enbridge currently registers a dividend yield of 6.7 per cent and pays a quarterly dividend of C$ 0.835.

Enbridge holds a market cap of C$ 101.6 billion and its price-to-earnings ratio is 15.8, according to the data from TMX.

On Friday, July 2, ENB share prices touched a 52-week high of C$ 50.29 before closing at C$ 50.15 apiece.

ENB stock surged 6.3 per cent in the past month and by about one per cent quarter-to-date (QTD).

Copyright © 2020 Kalkine Media

Cenovus Energy Inc. (TSX:CVE)

Ever since the integration of Husky Energy's assets, Cenovus Energy appears to be making strong progress. In the first quarter of 2021, Cenovus posted a net income of C$ 220 million, as compared to a loss of C$ 1.8 billion in Q1 2020.

In the same period, Cenovus saw its natural gas production increase to 895 million cubic feet per day (MMcf/d), reflecting an increase of 127 per cent year-over-year (YoY). Holding a debt-to-equity ratio of 0.75, Cenovus' market cap sits at C$ 24.2 million.

Cenovus Energy stock climbed 21.5 per cent in the last three months and registered a growth of 54.6 per cent in the past six months.

At market close on Friday, July 2, the scrip closed at C$ 11.98, about a whopping 189 per cent up from its 52-week low of C$ 4.15 (October 26, 2020).

Keyera Corp. (TSX:KEY)

Keyera Corp has business operations in Western Canada, and it majorly focuses on processing and fractionating natural gas. The energy company claims to operate over 3,106 miles of gathering pipelines and has at least 15 plants for processing natural gas.

Keyera holds a 0.84 per cent return on assets and distributes a monthly dividend of C$ 0.16 per unit. KEY stock's dividend grew by 5.5 per cent in the last five years and by 4.4 per cent in the last three years.

KEY stock recorded a YTD growth of 48.3 per cent. It closed at C$ 33.55 apiece on July 2.

Pembina Pipeline Corporation (TSX:PPL)

Pembina's pipeline network, which is said to run for about 18,000 kilometres, caters to the need of various markets in Canada and basins across North America due to its strategic location. The energy company has also partnered with TC Energy (TSX:TRP) to create a carbon transportation and sequestration system.

In Q1 2021, Pembina's total revenues amounted to C$ 2,045 million, as compared to C$ 1,671 million in Q1 2020. The oil company’s cash flow from operating activities was C$ 456 million in the first quarter, reflecting an increase of 11 per cent YoY.

PPL stock jumped 18.6 per cent in the past year. At market close on July 2, PPL shares were priced at C$ 39.65, reflecting a growth of 31.7 per cent for the last six months.
The above constitutes a preliminary view and any interest in stocks should be evaluated further from investment point of view.