Top 2 Canadian Energy Stocks To Hold This Year! - Kalkine Media

March 15, 2021 12:19 PM EDT | By Team Kalkine Media
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As markets progress towards normalcy amid largescale COVID-19 inoculation campaign and economic recovery in sight, the global demand for oil and natural gas is expected to rise in 2021.

This means that Canadian energy stocks will likely gain some traction as crude oil prices are also on the rise. Last month, the West Texas Intermediate (WTI) futures were up by almost 18 percent. It has maintained its gaining spree and is up by 6.7 percent month-to-date. It was priced at US$ 65.61 per barrel by market close on Friday, March 12.

Investors seeking top energy stocks can explore two large players from the energy, which are poised to grow even further:


Canadian Natural Resources Limited (TSX: CNQ)


One of the largest producers of oil and natural gas, the Canadian Natural Resources Limited (TSX: CNQ) operates in the western part of the country and has a massive portfolio that oil and natural gas.

The stock had nosedived during the pandemic but has bounced back well and is currently near its pre-pandemic levels in February. It has grown nearly 130 per cent in one year and 28 per cent year-to-date (YTD).

The scrips were priced at C$ 40.20 apiece at market close on March 12.

Canadian Natural Resources’ one-year stock performance chart (Source: Refinitiv)


The company also offers quarterly dividends of C$ 0.47 per stock and currently yields 4.7 per cent.

It has a market cap of C$ 47 billion and holds a P/B ratio of 1.472.  

The company reported a net loss of C$ 435 million in 2020, down from net income of C$5,416 million in 2019. Its cash flow from operating activities was also down to C$ 4,714 million last year, from C$ 8,829 in 2019.

Enbridge Inc (TSX: ENB)

This energy distributing and transporting company is one of the biggest players across North America. Enbridge Inc (TSX: ENB) is responsible for moving about 25 per cent of crude oil in North America and transports about 20 percent of the natural gas that is consumed in the US.

The company also produces renewable and alternative energy and has a capacity of 2,000 megawatts. Enbridge's stock has grown nearly by 28 per cent in one year. It is up by 11 per cent year-to-date. It also offers quarterly dividends of C$ 0.83 per share. The dividend yield is 7.35 per cent.

Enbridge Inc’s one-year stock performance (Source: Refinitiv)

With a market cap of C$ 92 billion, the company's return on equity is 5.16 per cent.

In 2020, the energy giant posted yearly GAAP earnings of C$ 3 billion and in 2019 the figure was at C$ 5.3 billion. The cash flow from operating activities was C$ 9.8 billion, marginally up from C$ 9.2 billion in 2019.


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