Kalkine Media explores Canadian energy stocks to watch

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Kalkine Media explores Canadian energy stocks to watch

 Kalkine Media explores Canadian energy stocks to watch
Image source: © Bulus | Megapixl.com

Highlights

  • The year 2022 is marked by the fastest inflation along with geopolitical tensions.
  • The Canadian energy industry has been dynamic among sectors, displaying constant change.
  • Canada's energy stocks are categorized in upstream, midstream, and downstream categories.

The Canadian energy industry has been dynamic among sectors, displaying constant change. This scenario has been observed despite the correction.

Canada's energy stocks, categorized in upstream, midstream, and downstream categories, include renewable energy organizations, electricity companies, natural gas corporations, oil companies, and solar farms.

While the upstream category includes underground oil and natural gas exploitation, the midstream group involves transportation and storage. The downstream sector specializes in refining and processing oil and gas.

Due to increasing global energy demand and high commodity prices, the Canadian energy sector stayed in the positive zone despite ups and downs.

The year 2022 is marked by the fastest inflation along with geopolitical tensions. This impacted the financial markets and the stock performance of different sectors.

If you are a stock market enthusiast, you might look at the performance of the following energy stocks:

Canadian Natural Resources Limited (TSX: CNQ)

Canadian Natural Resources Limited (TSX: CNQ) produces oil and natural gas. The company includes synthetic oil, heavy oil, light, and medium oil, natural gas liquids, bitumen, and natural gas.

The company is currently following a quarterly dividend cycle and distributed C$ 0.75 as a dividend. As of September 19, 2022, the price-to-equity ratio was 7.3, and the return on equity was 32.06 per cent. Moreover, the dividend growth over the past five years has been reported at 15.2.

The company has a market capitalization of C$ 82.6 billion, and Canadian Natural Resources Limited witnessed an increase of 75.86 per cent in the revenue generated in Q2 2022 (C$ 11,475 million) compared to Q2 2021 (C$ 6,525 million). Furthermore, the net earnings also grew from C$ 1,551 million in Q2 2021 to C$ 3,502 million in Q2 2022.

Suncor Energy Inc. (TSX: SU)

Suncor Energy's (TSX: SU) operations include offshore oil & gas production and upgrading, oil sands development, and petroleum refining.

Suncor had a market capitalization of C$ 55.8 billion at the time of writing. Meanwhile, it had paid a dividend of C$ 0.47.

Suncor’s earnings per share (EPS) were 6.53, and as of September 19, 2022, the price-to-earnings ratio of Suncor was 6.2.

The net earnings for Suncor energy were reported at C$ 3,996 million in the June quarter of 2022, compared to C$ 868 million in the same period of 2021.  

The adjusted funds from operations increased to C$ 5.345 billion in Q2 2022, compared to C$ 2.362 billion in Q2 2021.

Cenovus Energy Inc. (TSX: CVE)

Cenovus Energy, Inc. is involved in oil and gas exploration operations. Along with the company's base dividend, they offered beyond C$ 1 billion to shareholders in Q2, 2022, in common share purchases.

Additionally, for the second quarter that ended June 30, 2022, Cenovus generated cash from operating activities of nearly C$ 3 billion.

The company progressed by reducing its long-term debt, including the current portion, to C$ 11.2 billion and net debt to C$ 7.5 billion at the end of June.

Net earnings for Cenovus were C$ 2,432 million in Q2 2022 compared to C$ 224 million in Q2 2021.

Imperial Oil Limited (TSX: IMO)

Imperial Oil is an integrated oil company and reportedly had a per-day average production of 398,000 barrels in 2020. The total market capitalization of Imperial Oil is C$ 38.8 billion as of September 19, 2022. They pay a quarterly dividend of C$ 0.34.

For the second quarter of 2022, Imperial Oil reported a net income of C$ 2,409 million or diluted per share of C$ 3.63.

Cash flows from operating activities in Q2 2022 was C$ 2,682 million, an increase of C$ 852 million in the same period a year ago.

The below graph makes a comparison between the financials of the company in 2022 from Q1 and Q2.

Tourmaline Oil Corp. (TSX: TOU)

Tourmaline Oil Corp (TSX: TOU) is involved in acquiring natural gas and crude oil. Tourmaline Oil has a total market capitalization of C$ 26.3 billion. As of September 19, 2022, the EPS for Tourmaline was 7.49, and the price to earnings was reported at 10.5.

Also, the return on equity was reported at 23.79 per cent. The company saw a dividend growth of 58.38 per cent in three years. The dividend paid by the company is C$ 0.225 and follows a quarterly cycle.

Reportedly, Tourmaline witnessed an increase in its total revenue by 28.34 per cent. Furthermore, the company also saw a rise in its net income by 214.96 per cent. The net income in June 2022 was reported at C$ 822.94 million compared to C$ 261.28 million in March 2022.

Bottom Line

Today, there are multiple companies with energy stocks. Finding according to your suitability can be a task. It would be best if you found answers to certain questions to get the suitable one. What do you expect from your stock? What is your focus? Is it yield or revenue growth?

Once these questions are answered, they will direct you towards your suitable stock. Before selecting, it is advisable to go through a stock's fundamental and technical aspects.

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.

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