Razor Energy (RZE) and PetroTal (TAL): TSXV energy stocks to hold?

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Razor Energy (RZE) and PetroTal (TAL): TSXV energy stocks to hold?

Canada junior energy stocks
Image source: © Solarseven | Megapixl.com

Highlights

  • The energy sector is performing exceptionally well and soared massively by 61.8 per cent year-to-date (YTD).
  • PetroTal Corp is a crude oil and natural gas corporation. It has business operations in Peru, South America.
  • Notably, the RZE stock had a stellar run and surged 411.7 per cent in the last 12 months.

Despite uncertainty in the market due to several macroeconomic factors like the rising inflation and the Russia-Ukraine war, stocks of some sectors have fared well amid fears of a bearish market condition.

The energy sector is performing exceptionally well and soared massively 61.8 per cent year-to-date (YTD) and around 19 per cent quarter-to-date.

If you are an investor looking for cheap energy stocks, then the TSX Venture Exchange could be the right place. That said, let's take a look at two junior energy stocks and find out if they are worth a buy:

PetroTal Corp. (TSXV:TAL)

PetroTal Corp is a crude oil and natural gas corporation. It has business operations in Peru, South America. The Company makes money by selling crude oil, and Block 95 - Bretana oil field and Block 107 - Osheki Prospect are two of the Company's operations.

Despite production being constrained due to social protests, the Company produced 11,746 barrels of oil per day in Q1 2022 for the first time. The increase in production reflected an increase of 60% year-over-year (YoY).

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PetroTal generated a record net operating income of US$ 64.2 million, and its earnings before interest, taxes, depreciation and amortization (EBITDA) was US$ 58.7 million in Q1 2022, reflecting a threefold increase from Q1 2021.

The oil and gas company announced a US$ 120 million fully funded capital programme on February 22, 2022. The move could help PetroTal generate up to US$ 230 million in free cash flow this year.

During the trading session on May 25, the TAL stock surged by about five per cent and closed at C$ 0.65 per share.

Razor Energy Corp. (TSXV:RZE)

It is involved in the development and production of oil and gas, aiming to acquire oil and gas holdings in Alberta. Razor Energy works in the Swan Hills Beaverhill Lake and Kaybob Triassic Montney formations, producing and developing light oil.

Notably, the RZE stock had a stellar run and surged 411.7 per cent in the last 12 months. It outperformed the Toronto Stock Exchange 300 Composite Index during the same period.

On May 25, the RZE stock climbed four per cent and closed at C$ 3.07 per share. In Q4 2021, Razor energy generated a net income of C$ 19.2 million and achieved C$ 13.5 million of cash flow from operating activities.

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Please note, the above content constitutes a very preliminary observation or view based on digital 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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