3 energy stocks to buy as oil prices skyrocket
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The energy sector was able to fuel a triple-digit peak for the S & P / TSX Composite Index October 14. Indeed, the sector globally grew by 2.2% on the same day. Oil prices have exploded since the end of August. Supply remained tighter than usual in late summer and early fall as demand rebounded globally. In addition, these conditions could persist for months to come. Today I want to look at three energy values that are worth capturing in this environment.
This energy stock has soared alongside oil in recent weeks
Cenovus Energy (TSX: CVE) (NYSE: CVE) is a Calgary-based company that develops, produces and markets crude oil, natural gas liquids and natural gas in Canada, the United States and the Asia-Pacific region. Shares of this energy stock climbed 83% in 2021 to the October 14 close. The stock is up 186% from the previous year.
This business was already on the rise thanks to improving conditions in the energy sector. In the second quarter of 2021, Cenovus made a profit of $ 224 million. It was fueled by a strong recovery in sales which it attributed to a superior market. Revenue jumped to $ 10.5 billion from $ 2.17 billion the year before.
Shares of this energy stock are now trading just after a 52-week high following this surge in oil prices. Cenovus may continue to climb in this bull market.
Do not sleep on this stock which offers a nice dividend
Gas prices have soared alongside oil in this environment. This is good news for TC pipelines (TSX: TRP) (NYSE: TRP), which operates an energy infrastructure business focused on natural gas. This energy stock has increased by 24% since the start of the year. Its shares climbed 5.7% week after week.
In the second quarter of 2021, TC Pipelines saw its net income decline to $ 982 million, or $ 1.00 per share. However, the utility-type nature of TC Pipelines’ business means that it is a different type of energy stocks that investors can rely on for steady income. He recently announced a partnership with Pembina jointly develop a carbon transportation and sequestration system in Alberta. Pembina is another high dividend energy stock.
TC Pipelines has a price-to-earnings ratio of 31, which places it in solid value territory relative to its industry peers. Better yet, it offers a quarterly dividend of $ 0.87 per share. This represents a strong yield of 5.3%.
More energy to grab as oil prices soar
Imperial Oil (TSX: IMO) (NYSE: IMO) is the third and final energy stock I want to focus on as oil prices have entered a bull market. This Calgary-based company explores, produces and sells crude oil and natural gas in Canada. Its shares climbed 71% in 2021. The stock jumped 17% month over month.
The company earned $ 366 million in the second quarter of 2021. It earned this positive report thanks to the highest production record in a quarter century. Imperial Oil is perfectly positioned to take advantage of this climate. This energy stock also offers a quarterly dividend of $ 0.27 per share, which represents a return of 2.5%.