- Amid fluctuating oil prices, the Canadian energy sector has been performing better than other sectors in 2022.
- At the time of writing this, energy prices were up on Friday, May 13
- TGL stock swelled by almost 192 per cent in 12 months.
- PIPE stock shot up by over 170 per cent in 52 weeks.
Amid fluctuating oil prices, the Canadian energy sector has been performing better than other sectors in 2022. The S&P/ TSX Capped Energy Index has gained by about 44 per cent year-to-date (YTD), with the TSX benchmark index falling by over seven per cent during this time.
Oil is expected to close this week in a loss after a streak of a three-week gain amid rising concerns around inflation, China's COVID-19 crisis and talks of a European Union embargo on Russian oil.
But, at the time of writing this, energy prices were up on Friday, May 13, with the West Texas Intermediate (WTI) standing at around US$ 106.97 per barrel and Brent crude hovering over a mark of US$ 108.43 at 3:47 AM EST.
Now, let us explore two TSX oil stocks that have recently reported their quarterly results for Q1 FY2022.
Pipestone Energy Corp (TSX: PIPE)
Pipestone Energy more than doubled its revenue to C$ 153.5 million in Q1 FY2022 compared to C$ 71.5 million a year ago. The energy company also increased its production by 28 per cent year-over-year (YoY) to 27,581 barrels of oil equivalent per day (boe/d) in the latest quarter.
The TSX oil company saw its free cash flow (FCF) grow considerably to C$ 8.35 million in Q1 FY2022 against a deficit of C$ 18.04 million registered in Q1 2021. Its income and comprehensive income amounted to C$ 27.05 million in the latest quarter compared to a loss of C$ 0.954 million a year ago.
PIPE stock shot up by over 170 per cent in 52 weeks. As of May 11, the energy stock has a Relative Strength Index (RSI) value of 36.29. The oil was trading at C$ 4.45 apiece at the time of writing.
TransGlobe Energy Corporation (TSX: TGL)
TransGlobe Energy said that its sales averaged 11,964 boe/d in Q1 FY2022. The oil producer recorded US$ 81.51 million in petroleum and natural gas sales in the latest quarter, representing a YoY growth of 93 per cent. Its net profit rose to US$ 48.81 million in the latest quarter compared to a negative balance of US$ 11.02 million a year ago.
TGL stock swelled by almost 192 per cent in 12 months. According to the data collected from Refinitiv, the oil stock had an increasing RSI value of 50.44 as of May 11.
Pipestone Energy and TransGlobe Energy are small-cap stocks priced under C$ 6 per share. Investors should note that these TSX oil stocks have outshone the TSX benchmark in the last year and have greater exposure in terms of growth than mid-caps or large caps.
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.