5 top Canadian oil & gas stocks to buy that soared over 100% in a year

Highlights

  • Canadian Prime Minister Justin Trudeau committed to put a cap on the greenhouse gas (GHG) emissions released by the country’s oil and gas industry at the recent UN climate conference.
  • On November 5, the S&P/TSX Capped Energy Index shot up by 2.59 per cent, marking a year-to-date (YTD) surge of 83.90 per cent.
  • A stock mentioned here yielded a one-year return of nearly 234 per cent.

At the UN climate conference COP26, Canadian Prime Minister Justin Trudeau committed to put a cap on the greenhouse gas (GHG) emissions released by the country’s oil and gas industry.

While the Liberal government has shown interest in achieving the net zero target by 2050, some big players in the oil and gas space believe that the climate targets are “unrealistic” and set to cause harm to their business.

5 top Canadian oil & gas stocks to buy that soared over 100% in a year

But amid the fear of a carbon emission cap and supply crunch, the energy sector has been performing comparatively well recently. At market close last Friday, November 5, the S&P/TSX Capped Energy Index was up by 2.59 per cent, marking a year-to-date (YTD) surge of 83.9 per cent.

Also read: 2 Canadian hydrogen stocks to buy in November

On that note, let us discuss some of the top TSX-listed oil and gas companies and their stock performances.

 5 TSX-listed oil and gas stocks with a one-year return over 100 per cent

 Image source: © 2021 Kalkine Media Inc    

1.    Suncor Energy Inc (TSX:SU)

Stocks of Suncor Energy hit a day high of C$ 33.145 on Friday, November 5, before closing the trading session in green at C$ 32.97 apiece.

The C$ 48.2-billion market cap company marked a one-year high stock price of C$ 33.34 on the first day of November, which was about a per cent higher from its last closing price.

SU stock has jumped up by more than 14 per cent over the past month and surged by roughly 37 per cent in the previous three months. Its year-to-date (YTD) return has been more 54 per cent.

The energy stock has also yielded almost 117 per cent return in the previous twelve months.

In Q3 FY2021, the Canadian integrated oil and gas producer’s funds from operations stood at C$ 2.641 billion or C$ 1.79 apiece, up from C$ 1.166 billion or C$ 0.76 apiece in the same period a year ago. Further, it reduced its net debt by C$ 2 billion in the latest quarter.

Suncor Energy, which held a return on equity (ROE) of 6.8 per cent (as of November 8), is set to pay C$ 0.42 per share as quarterly dividend on December 24.

Also read: Suncor (TSX:SU) hikes dividend by 100%: An oil stock to buy & hold?

2.    Canadian Natural Resources Limited (TSX:CNQ)

Canadian oil and natural gas firm Canadian Natural Resources Limited saw its stocks close at C$ 54.21 apiece on November 5, up by 3.041 per cent. During this trading session, the energy stock clocked a 52-week high of C$ 54.85.

CNQ stock has climbed by more than nine per cent in the past month and surged by roughly 32 per cent in the last three months.

Its stock also soared by almost 154 per cent over the previous year, while posting a YTD return of more than 77 per cent.

Canadian Natural Resources recorded net earnings of C$ 2.202 billion in the third quarter of fiscal 2021, up from C$ 1.551 billion in Q3 FY2020.

With a market capitalization of C$ 63.85 billion, the energy giant held an ROE of 12.50 per cent (as of November 8).

The firm is expected to dole out a quarterly dividend of C$ 0.588 per share on January 5.

3.    Cenovus Energy Inc (TSX:CVE)

Cenovus Energy Inc, which owns and operates oil sands assets in Canada, saw its stock price hit a new 12-month high of C$ 15.85 apiece on November 5. At market close, it was priced at C$ 15.59 apiece, up by 2.163 per cent.

Cenovus Energy Inc (TSX:CVE)’s stock performance as of November 5, 2021   

 Image source: © 2021 Kalkine Media Inc    

Over the past month, its stock price has spiked by nearly 11 per cent. It also gained more than 68 per cent in the previous six months.

CVE stock has surged by nearly 234 per cent in a year and rocketed by more than 101 per cent on a YTD basis.

In the third quarter of FY 2021, its cash from operating activities stood at C$ 2.1 billion and adjusted funds flow was C$ 2.3 billion, supported by a daily upstream production of almost 805,000 barrels of oil equivalent.

On November 2, the company declared an increased third-quarter dividend of C$ 0.035 apiece, which will be payable on December 31. 

4.    Tourmaline Oil Corp (TSX:TOU)

Tourmaline Oil Corp, a Canadian crude oil and natural gas producer, witnessed its scrip close at C$ 46.22 per share on November 5, up by 1.784 per cent.

TOU scrip has ascended by more than three per cent in the past month and risen by more than 48 per cent in the last three months.

Tourmaline’s scrip also zoomed by about 143 per cent in a year, while its YTD gain was about 174  per cent.

Its third-quarter cash flow amounted to C$ 761.3 million in fiscal 2021, up from C$ 279.9 million in Q3 FY2020.

It held an ROE of 18.55 per cent and a return on assets (ROA) of 13.01 per cent at the time of writing this.

Also read: 3 best TSX oil & gas stocks to energize your portfolio

5.    Whitecap Resources Inc (TSX:WCP)

On November 5, Whitecap Resources stocks packed up its trading session at C$ 7.4 apiece, up by 1.509 per cent.

The oil stock has increased by more than 41 per cent in the past three months and scaled up by more than 52 per cent on a YTD basis. In the last twelve months, it rocketed by more than 197 per cent.

In the third quarter of 2021, its funds flow grew by 59 per cent to C$ 294 million on a year-over-year (YoY) basis.

Whitecap is set to pay a monthly dividend of C$ 0.022 per share on November 15.

Bottom line

Many oil and gas companies are working on minimizing their carbon footprint to keep up with the changing times.

Investors should ideally take note of these environment-conscious initiatives while researching an oil company’s financial and fundamentals details.

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