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Summary
- The S&P/TSX Capped Energy Index rebounded by 5 per cent on Monday, February 22, led by the optimistic oil commentaries from analysts.
- Suncor ignited the energy sector rally, with an impressive surge of 8.2 per cent and a one-day volume of approximately 24.73 million.
- Stocks of Canadian Natural Resources were up 3.34 per cent. The stock has outperformed the index in the month-to-date performance.
The two-giant oil producing nations, Russia and Saudi Arabia, once again butted heads ahead of the upcoming crucial OPEC+ meeting on March 4. Saudi has already curtailed its oil production from February, while Kremlin has indicated it wants to continue with higher output.
Goldman Sachs’ projection for energy companies is buoyant. It expects oil prices to hit US$75 a barrel by the third quarter of 2021.
The S&P/TSX Capped Energy Index jumped more than five per cent on Monday, February 22. Stocks of the top two constituents of the index – Suncor Energy Inc. (TSX:SU) and Canadian Natural Resources Limited (TSX:CNQ) – have been also surging.
Their combined market cap is nearly C$ 82.4 billion, which is over 64 per cent weightage of the adjusted market cap of the energy index.
Let us deep-dive into both energy stocks’ performances:
Suncor Energy Inc. (TSX:SU)
Stocks of this leading energy company soared as much as 8.2 per cent on Monday, with a massive one-day volume of 24.73 million.
It has returned over 21 per cent this year. The 30-day average volume is 10.01 million.
However, the stock is still trading at C$ 25.90 per share against its 52-week high of C$ 39.30.
Suncor will distribute dividend of C$ 0.21 per common share for the current quarter. It holds a dividend yield of 3.243 per cent and five-year dividend growth of around 3 per cent.
In the fourth quarter of 2020, cash from operations amounted to C$1.221 billion, up quarter-over-quarter against C$ 1.166 billion in Q3 of 2020.
Image Source: ©Kalkine Group 2020
Canadian Natural Resources Limited (TSX:CNQ)
The stock of the oil and natural gas manufacturer increased by 3.34 per cent yesterday. Approximately 7 million shares changed hands.
It is up more than 18 per cent year-to-date (YTD), with a price-to-cash ratio of 7.00. It has yielded over 25.12 per cent month-to-date (MTD). In contrast, the energy index has moved by 24.65 per cent MTD.
The energy firm distributed a constant quarterly dividend of C$ 0.425 per common share, with a present dividend yield of 4.703 per cent.
In 2021 guidance, it expects average production in the range of 1.19 million barrels of oil equivalent per day (BOE/d) and 1.26 million BOE/d, a rise of nearly 5 per cent from 2020 estimated levels.
Canadian Natural Resources Limited is like to report its fourth-quarter numbers on March 5, 2021.
