Enbridge (ENB) & CNQ: TSX oil stocks to buy as gas prices break records

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Enbridge (ENB) & CNQ: TSX oil stocks to buy as gas prices break records

Enbridge (ENB) & CNQ: TSX oil stocks to buy as gas prices break records
Image source: © 2022 Kalkine Media®     

Highlights

  • Crude oil prices reportedly crossed the mark of US$ 90 per barrel on Friday, February 4, prompting gas prices to surge throughout Canada. 
  • The energy sector stood out as a winner in 2021 and continues to be ahead of other sectors, with the TSX energy index marking a growth of almost 23 per cent in 2022.
  • Stocks of Canadian Natural Resources soared by roughly 112 per cent in the past one year.

Crude oil prices reportedly crossed the mark of US$ 90 per barrel on Friday, February 4, prompting gas prices to surge throughout Canada. 

The energy sector stood out as a winner in 2021 and continues to be ahead of other sectors, with the TSX energy index marking a growth of almost 23 per cent in 2022.

Let us discuss two leading energy players in the country, which are likely to benefit from soaring gasoline prices.

1.    Enbridge Inc (TSX: ENB)

On February 3, midstream energy company Enbridge agreed to advance the proposed Carbon Hub in western Edmonton for carbon transportation and storage solutions with the First Nation Capital Investment Partnership.

The North American hydrocarbon transporter recorded third-quarter net earnings of C$ 682 million in FY2021.

Enbridge (ENB) Q3FY2021 results

 Image source: © 2022 Kalkine Media®     

Data source: Enbridge Inc

Following this announcement, stocks of Enbridge Inc clocked a new 52-week high of C$ 55.17 on Friday. The energy transportation stock climbed almost 22 per cent year-over-year (YoY).

Enridge stock closed at C$ 54.72 apiece on Friday, with some 7.5 million shares exchanging hands.

Also read: BMO & RBC (RY): 2 TSX dividend stocks that can boost your passive income 

2.    Canadian Natural Resources Limited (TSX: CNQ)

Energy giant Canadian Natural has said that it is targeting its 2022 production to reach the range of 1.2 million to 1.3 million barrels of oil equivalent per day (bor/d), with a base capital budget of C$ 3.6 billion.

The energy producer is also said to be actively working to reduce its carbon emissions and focuses on attaining net-zero greenhouse gas (GHG) emissions in oil sand operations.

Stocks of Canadian Natural soared by roughly 112 per cent in the past one year.

Canadian Natural stock also hit a new 52-week high of C$ 69.46 apiece on Friday and closed at a value of C$ 68.30 apiece.

Bottomline

With Enbridge and Canadian Natural Resources actively pursuing carbon reduction and net zero-emission strategies, they could gain further demand going forward amid rising climate change awareness.

Additionally, these companies, known to be dividend aristocrats, can be a healthy source of passive income in the long run as they are backed by robust financial and operational reports.

Also read: Saputo (SAP) & Loblaw (L): 2 TSX stocks for you as milk prices rise

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