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Highlights
- The TSX Composite Index gained by 121.56 points on Monday, July 25
- The TSX Capped Energy Index rose by 3.56 per cent on this day
- The SES stock surged by about eight per cent on July 25
Secure Energy (TSX:SES), Spartan (TSX: SDE) and Nuvista (TSX:NVA) were among the top five winners, helping the TSX Composite Index to post a triple-digit gain of 121.56 points on Monday, July 25. The TSX Capped Energy Index rose by 3.56 per cent on this day.
Oil prices surged again as supply worries seemed to outweigh market expectations of interest rates affecting oil demand ahead of a possible US rate hike announcement (expected on Wednesday). Crude prices were around US$ 98.46 while Brent prices were trading at approximately US$ 106.68 at 3:04 AM EST on Tuesday, July 26.
With this rally in TSX energy stocks, let us look at five Canadian oil stocks to keep on your radar.
1. Secure Energy Services Inc (TSX:SES)
Secure Energy is a smallcap company that operates two divisions, midstream infrastructure and environmental and fluid management. The oil service provider offers fluid and solid solutions in Canada and the US. Secure Energy saw its total revenue gallop by 165 per cent year-over-year (YoY) to C$ 1.75 billion in Q1 FY2022.
The SES stock surged by about eight per cent on July 25 and was up by almost 51 per cent YoY. According to Refinitiv findings, SES stocks held a Relative Strength Index (RSI) of 56.86 on July 25, denoting a moderate trend.
2. Gran Tierra Energy Inc (TSX:GTE)
Gran Tierra is a Canadian oil and natural gas company with a market capitalization of C$ 578.48 million. The smallcap energy producer posted net earnings of US$ 14.11 million in the first quarter of 2022, significantly up from a loss of US$ 37.42 million in Q1 2021.
GTE stocks catapulted by almost 99 per cent in 52 weeks. As per Refinitiv data, Gran Tierra stocks recorded an RSI of 48.58 on July 25, with a 10-day average volume of 1.13 million.
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3. Crew Energy Inc (TSX:CR)
Crew Energy reported average production of 33,399 barrels of oil equivalent (boe) per day in the first quarter of FY2022, marking a YoY growth of 27 per cent. The C$ 778.6-million market cap company saw its stocks swell by over seven per cent on July 25.
Stocks of Crew Energy rocketed by over 123 per cent in 12 months. According to Refinitiv, CR stocks saw an RSI value of 54.78 on July 25.
4. Spartan Delta Corp (TSX:SDE)
Spartan Delta posted a 127 per cent surge in its average production volume to 72,588 boe a day in Q1 2022 relative to Q1 2021. The C$ 1.87-billion market cap company recorded a return on equity (ROE) of nearly 50 per cent, which denoted its profitability.
The SDE stock shot up by over 139 per cent in a year. Refinitiv findings suggest that SDE stocks had an RSI value of 51.04 on July 25.
5. NuVista Energy Ltd (TSX:NVA)
NuVista is a midcap company with oil and gas operations in the Western Canadian Sedimentary Basin. The NVA stock rose by almost 196 per cent in the past 12 months.
According to Refinitiv, NVA stocks held an RSI value of 51.81 on July 25, representing a moderate market situation.
Bottom line
The TSX Capped Energy Index gained by over 35 per cent year-to-date (YTD). These TSX oil stocks are priced under C$ 15 and may benefit from oil price fluctuations. However, one should be well versed with the oil market and economic factors that could impact oil prices and act in a timely manner in order to avoid losses.
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.
