CNQ, CVE & ARX: 3 TSX stocks to buy as CNRL hits $100B market cap

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CNQ, CVE & ARX: 3 TSX stocks to buy as CNRL hits $100B market cap

TSX, Canadian Natural Resources Limited, Cenovus Energy Inc, ARC Resources Ltd
Image source: Pixabay.com

Highlights

  • On Wednesday, April 20, Canadian Natural Resources Limited (CNRL) became the first oil and gas maker on the TSX to hit C$100 billion in market capitalization 
  • The S&P/TSX Capped Energy Index has gained nearly 50 per cent in 2022 
  • These three companies pay their stockholders dividends 

On Wednesday, April 20, as the stock of Canadian Natural Resources Limited peaked to an all-time high of C$86.43, the company became the first oil and gas maker on the TSX to hit C$100 billion in market capitalization. This took it well above the second-biggest oil and gas maker on the TSX, Suncor Energy Inc.  

That a new all-time high was reached should come as no surprise as the S&P/TSX Capped Energy Index has gained nearly 50 per cent in 2022. So, let us look into three companies listed on this index. 

Canadian Natural Resources Limited (TSX:CNQ) 

At present the biggest Canadian oil producer, the company is said to possess more than 11.5 billion barrels of oil equivalent (boe) of proven and probable crude oil and natural gas reserves. 

On Wednesday, the CNQ stock closed at C$85.95, UP 1.7 per cent, after touching its all-time high of C$86.43. The stock has gained 61 per cent this year, outdoing its index. It has surged 132 per cent in the last 12 months. 

With a quarterly dividend of C$0.75, the stock has a dividend yield of 3.49 per cent. 

Cenovus Energy Inc (TSX:CVE) 

Cenovus is estimated to have about 6.7 billion boe of proven and probable reserves. With a market cap C$45 billion, it is the third biggest company in the above-mentioned energy index. 

Also read: How to handle a bearish phase in the market?

The CVE stock closed Wednesday at C$22.82, up 0.75 per cent. On a year-to-date (YTD) basis, it is up over 47 per cent and over the past year it has risen nearly 148 per cent. 

CVE’s quarterly dividend is C$0.035 and its dividend yield is 0.613 per cent. 

ARC Resources Ltd (TSX:ARX) 

ARC’s proven and probable reserves are about 879 million boe. In terms of market cap, with C$12.8 billion, it is currently in the sixth position in the S&P/TSX Capped Energy Index.  

Also read: Canada Budget 2022 earmarks $12.5B more for climate: 2 TSX clean stocks

On Wednesday, the ARX stock closed at C$18.48. It is up nearly 61 per cent YTD and has soared 146 per cent in 12 months. 

ARX’s quarterly dividend is C$0.10 for a dividend rate of 2.165 per cent. 

TSX, Canadian Natural Resources Limited, Cenovus Energy Inc, ARC Resources Ltd

Image source: © 2022 Kalkine Media®

Also read: Is investing in gold worth considering during high inflation?

Bottom line 

These are three of the biggest players in the TSX energy sector, which currently accounts for over 17 per cent of Canada’s benchmark TSX Composite Index. Two of them have outperformed the S&P/TSX Capped Energy Index on a YTD basis.  

Canadian Natural Resources Limited is now reportedly the fourth largest oil and gas producer in North America behind the likes of Exxon Mobil and Chevron. The above three companies pay their stockholders dividends. 

 Also read: How does current inflation compare to 1970s stagflation?

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.

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