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https://www.adviceforinvestors.com/news/canadian-stocks/2-oil-gas-stocks-to-buy-now-2/#gsc.tab=0
2 oil & gas stocks to buy now
Here are two oil and gas stocks with strong cash flows that will outperform their peers.
Investors who can only remember conventional energy’s recent doldrums and would rather search the skies and other renewable energy sources for profits may want to look closer to the ground, where the money is.
So argues Toronto stock analyst Greg Pardy, head of global energy research for RBC Capital Markets. Previously he served as a managing director at Scotia Capital.
Mr. Pardy names two domestic stalwarts of the energy industry as his favourites among the companies he covers: Canadian Natural Resources Ltd. (TSX—CNQ; NYSE—CNQ) and Enerplus Corporation (TSX—ERF; NYSE—ERF), in large part on the basis of their strong cash flows. He says both companies will “outperform” peers.
It may seem an eternity ago, but even before COVID was a pandemic, in February 2020, the companies working in Canada’s oilsands and oilfields were in trouble.
On one hand, they faced a lack of transport capacity and thus access to markets, while on the other, foreign oil producers resolved to increase their own output and caused a supply glut, all of which conspired to push prices down.
When the health crisis took hold a few weeks later, the price of Canadian oil collapsed outright, to the lower teens; at the gas pump, drivers were treated to 1990s-level prices and even, in some cases, negatively priced fuel.
As of May 20, however, the Western Canadian Select (WCS) crude price stood at US$48.95 per barrel, a small dip from the March 2021 average of US$50.94 a barrel, a staggering 296.7 per cent higher than in March 2020 according to the government of Alberta. Meanwhile, the price of West Texas Intermediate (WTI) jumped 113.4 per cent year-over-year to US$62.33 a barrel last March.
Canadian Natural Resources “the best”
Mr. Pardy singles Canadian Natural out for particular praise, calling it “simply the best” as well as underlining its place on RBC’s “Global Top 30” and “Best Energy Ideas” lists.