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Energy is Rallying, but These TSX Stocks Are Still Under $5

Stockhouse Editorial
2 Comments| March 7, 2022

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(Crude oil stock chart - March 2021 to March 2022. Click to enlarge.)

Oil and gas prices have been rallying well past pre-COVID-19 levels, pushing energy stocks to outperform all other asset classes. The S&P/TSX Capped Energy Index is up more than 30% in 2022, compared to the 0.78% seen by S&P / TSX Composite Index.

As the United States and European allies consider banning Russian oil imports, raising concerns about their impact on growth, prices rose to their highest levels since 2008 and are up more than 60% since the start of 2022.


For investors looking to get in on this action, but still want to experience some growth, here are three energy stocks worth further investigation:

Journey Energy Inc. (TSX: JOY, Forum) is a Canadian exploration and production company focused on oil-weighted operations in western Canada. Journey's strategy is to grow its production base by drilling on its existing core lands, implementing waterflood projects, and by executing on accretive acquisitions. Journey seeks to optimize its legacy oil pools on existing lands through the application of best practices in horizontal drilling and, where feasible, with water floods.

Journey recently report its year-end 2021 oil and gas reserves evaluation, highlighting:

  • Proved developed producing reserves increased 20% to 24.0 MMboe, with a corresponding increase of 133% in NPV@10% to $180.1 million(CAD) ($193.8 million including the Countess Power Project (CPP)) from $77.2 million in 2020. The PDP reserve life index increased to 7.8 years from 6.9 years.
  • Proved reserves increased 14% to 33.2 MMboe, with a corresponding increase of 119% in NPV@10% to $256.2 million (CAD) ($272.1 million including the CPP).
  • Proved plus Probable Developed Producing reserves increased 10% to 31.0 MMboe, with a corresponding increase of 95% in NPV@10% to $228.7 million (CAD) ($242.4 million including the CPP). The Proved plus Probable Developed Producing reserve life index increased to 9.9 years from 9.4 years.
  • Proved plus Probable reserves increased 10% to 54.8 MMboe, with a corresponding increase of 77% in NPV@10% to $434.6 million (CAD) ($450.5 million including the CPP).
  • Proved developed producing and proved plus probable developed producing reserve life index of 7.8 and 9.9 years respectively, are testaments to Journey's low decline asset base.

(Journey Energy Inc. stock chart – March 2021 to March 2022. Click to enlarge.)

Over the last three months, JOY stock rose 174% and is up 1,180% since this time, last year, but is still just $4.80 (CAD).

Meanwhile, another energy stock that has seen impressive growth on its own, to the tune of a 223% increase since last March, is Perpetual Energy Inc. (TSX: PMT, Forum).

Still trading at under 75 Canadian cents, Perpetual is an oil and natural gas exploration, production and marketing company headquartered in Calgary, Alberta. Perpetual owns a diversified asset portfolio, including liquids-rich conventional natural gas assets in the deep basin of West Central Alberta, heavy crude oil and shallow conventional natural gas in Eastern Alberta.


(Perpetual Energy Inc. stock chart – March 2021 to March 2022. Click to enlarge.)

Finally, another stock that has seen immense growth over the last 12 months is oil development and production company InPlay Oil Corp. (TSX: IPO, Forum).

Trading at $3.50 a share, IPO stock has climbed 713.95% since March 2021.


(InPlay Oil Corp. stock chart – March 2021 to March 2022. Click to enlarge.)

InPlay is a junior oil and gas exploration and production company with operations in Alberta focused on light oil production. The company operates long-lived, low-decline properties with drilling development and enhanced oil recovery potential as well as undeveloped lands with exploration possibilities.

The TSX Energy Index has outperformed the TSX by 80 percentage points over the past year. The WTI crude price has jumped $115 (USD) a barrel, and this would only drive up the value of these stocks and others.


New to investing in Oil and Gas? Check out Stockhouse tips on How to Invest in Energy Stocks and some of our Top Energy Stocks.

For more of the latest info on Oil and Gas, check out the Energy Trending News hub on Stockhouse.




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Comments

Eric Nutall 3 top picks were MEG,ERF,NVA Now I own all of them.
(33)
March 12, 2022

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