Enbridge (ENB) & Suncor (SU): 2 TSX energy stocks to bag in 2022

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Enbridge (ENB) & Suncor (SU): 2 TSX energy stocks to bag in 2022

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 Enbridge (ENB) & Suncor (SU): 2 TSX energy stocks to bag in 2022
Image source: © 2022 Kalkine Media®  

Highlights

  • Enbridge (TSX:ENB) and Suncor Energy (TSX:SU) have drawn some attention in the stock markets.
  • Enbridge announced its fourth-quarter results for fiscal year 2021 on Friday, February 11, following which it noted a trading volume of 14.41 million shares.
  • Also, Suncor saw its stock price climb roughly five per cent on this day, with 13.31 million shares exchanging hands.

Enbridge (TSX:ENB) and Suncor Energy (TSX:SU) have drawn some attention in the stock markets. Enbridge announced its fourth-quarter results for fiscal year 2021 on Friday, February 11, following which it noted a trading volume of 14.41 million shares.

Also, Suncor saw its stock price climb roughly five per cent on this day, with 13.31 million shares exchanging hands. Let us discuss why these two energy players are trending in the market.

Enbridge Inc (TSX:ENB)

The Calgary-headquartered energy transporter, on a Generally Accepted Accounting Principles (GAAP) basis, recorded earnings of C$ 1.84 billion in Q4 FY2021 compared to C$ 1.77 billion a year ago.

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Enbridge generated C$ 2.3 billion cash from operating activities in the latest quarter, up from C$ 2.25 billion in Q4 2020. Its fourth-quarter distributable cash flow was C$ 2.48 billion in Q4 FY2021 compared to C$ 2.2 billion a year ago.

The C$ 112 billion market cap energy company expects its 2022 adjusted EBITDA to reach somewhere between C$ 15 billion to C$ 15.6 billion. The owner and operator of midstream energy assets also raised its quarterly dividend to C$ 0.86, payable on March 1, up by three per cent.

Enbridge (TSX:ENB) Q4 FY2021 results

 Image source: © 2022 Kalkine Media® 

Stocks of Enbridge has grown by over 26 per cent year-over-year (YoY). The ENB stock closed at C$ 55.65 apiece on Friday, up by almost two per cent.

Suncor Energy Inc (TSX:SU)

The integrated energy company saw fourth-quarter net profit of C$ 1.55 billion in 2021, significantly up from a net loss of C$ 168 million in the same period of 2020.

Suncor’s stock has soared by nearly 68 per cent YoY. The SU stock has gained by over 21 per cent so far in 2021. The energy scrip closed at C$ 38.38 apiece on Friday.

Bottom line

The S&P/TSX Capped Energy Index climbed by almost four per cent on Friday with a year-to-date (YTD) return of over 24 per cent.

Energy companies like Enbridge and Suncor might see their earnings grow with increasing energy prices. However, the effects of climate change may not bode well for oil and gas companies as eco-friendly investors are heading towards clean tech and green companies that minimize carbon emissions in the environment.

Also read: Why is Fairfax (TSX: FFH) trending and is it a dividend stock to buy?

Please note, the above content constitutes a very preliminary observation or view based on industry trends 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.

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