Kalkine Media explores 5 TSX Energy stocks to watch in December

Highlights

• In Q3 2022, Canadian Natural’s net earnings were C$ 2,814 million.
• Vermilion Energy’s reported Q3 2022 net earnings of C$ 271.07 billion.
• ARC’s Q3 2022 net income was C$ 867.8 million.

With increasing energy efficiency and recent market developments, there's so much going on in the energy sector. Presently, the energy sector reported a year-to-date (YTD) growth of 60.138 per cent. The sector is on the rise but is also witnessing its share of ups and downs.

Amid this, the investors must follow a balanced approach and need to consider every factor. While checking the financials of the stocks, consider the stock and company valuations as well.

It is vital to stabilize your portfolio from time to time and strategize your techniques. Here we assess five stocks with their recent financial highlights:

1. Canadian Natural Resources Limited (TSX: CNQ)

Canadian Natural Resources Limited produces oil and natural gas. The company’s portfolio includes synthetic oil, natural gas, and bitumen. 

In Q3 2022, Canadian Natural’s cash flow from operating activities increased to C$ 6.09 billion from C$ 4.29 billion. Further, the net earnings too grew to C$ 2,814 million from C$ 2,202 million in the year-ago quarter.

The adjusted funds flow soared to C$ 5,208 million from C$ 3,634 million. The company noted its dividend growth for the past three years at 13.61 per cent along with a dividend per share of C$ 0.85. The dividend yield was 4.253 per cent.

2. Cenovus Energy Inc. (TSX: CVE)

Cenovus Energy Inc. creates value through the development of oil sands assets. It is an oil company with an integrated portfolio that includes natural gas, crude oil, and natural gas liquids.  

In Q3 2022, Cenovus Energy’s net earnings rose to C$ 1,609 million from C$ 551 million in the year-ago quarter. The net debt of the company decreased to C$ 5,280 million from C$ 11,024 million for the same period of comparison. The adjusted funds flow grew to C$ 2,951 million from C$ 2,342 million. The cash from operating activities grew to C$ 4,089 million from C$ 2,138 million.

3. Baytex Energy Corp. (TSX: BTE)

Baytex Energy Corp. is an oil and gas company with presence in the US and Canada. The Canada segment of the company produces, develops, and explores crude oil and natural gas.

In Q3 2022, Baytex’s net income grew to C$ 264.96 million from C$ 32.71 million in the year-ago quarter. The cash flow from operating activities jumped to C$ 310.42 million from C$ 178.96 million for the same comparative period. The free cash flow soared to C$ 111.56 million from C$ 101.21 million. The adjusted funds flow soared to C4 284.28 million from C$ 198.39 million. The company’s net debt declined to C$ 1.11 billion from C$ 1.56 billion.

The EPS of CNQ, CVE, BTE, VET, and ARX:

4. Vermilion Energy Inc. (TSX: VET)

Vermilion Energy Inc. is engaged in producing oil and gas and is also engaged in development, acquisition, optimization and exploration in Australia, America, and Europe.

Vermilion Energy’s net earnings in Q3 2022 were reported at C$ 271.07 billion versus a loss of C$ 147.13 billion in Q3 2021. The free cash flow of the company rose to C$ 323.86 billion from C$ 196.24 billion for the same comparable period. The cash flow from operating activities increased to C$ 447.6 billion versus C$ 211.54 billion.

As on September 30, 2022, the net debt of the company shrank to C$ 1,412.05 billion from C$ 1,644.78 billion on December 31, 2021. On the other hand, the current assets of the company increased to C$ 598.54 billion from C$ 472.84 billion for the same period.

On October 4, 2022, Vermilion Energy acquired Coelacanth Energy Inc’s Common Shares.

5. ARC Resources Ltd. (TSX: ARX)

ARC Resources Ltd. develops, produces, acquires, and explores natural gas and conventional oil. The company has a presence in Western Canada and includes natural gas liquids, medium and light crude oil.

In Q3 2022, ARC’s net income rose to C$ 867.8 million from C$ 53.6 million in Q3 2021. The free funds flow also increased to C$ 580.1 million from C$ 497 million for the same comparable period. ARC’s net debt decreased to C$ 1,541.3 million from C$ 1,926.4 million. The cash flow from operating activities rose to C$ 1,103.6 million from C$ 615 million. The company increased its dividend to C$ 76.7 from C$ 47.1.

Bottom Line

Market fluctuations may happen anytime. Hence, as a long-term investor, try to spread out the risk and follow the diversification approach. Be pragmatic in your approach and conduct thorough research. By understanding your stocks better and aligning your investment goals with market trends, you may have a clear picture of the overall market and can plan your next movie accordingly.

Lastly, by diversifying your portfolio, you can shuffle amongst multiple stocks at one time. With this, you may work on the other factors and spend your time understanding the fluctuating market trends. Having an overall picture of the market is helpful for paving the way for a stable portfolio. 

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.