We are in the midst of a major bullish period for oil.
As of this writing, West Texas Intermediate (WTI) rude was at $81 and Brent Crude at $83–the highest prices seen in years.
In 2020, oil prices fell to record lows. At one point, WTI futures turned negative. But starting in January, the commodity began a steep ascent, taking it to highs not seen since 2014.
At this point, it looks like oil prices could top $100 for the first time in over a half-decade. And oil stocks are predictably rallying on this development. With higher oil prices come higher margins for integrated energy companies. Whether you look at U.S., European, or Canadian oil stocks, they’re all rallying. In this article, I’ll take a deep dive look at two Canadian energy stocks profiting off higher oil.
Cenovus Energy Cenovus Energy (TSX:CVE)(NYSE:CVE) is a Canadian integrated energy company involved in:
- Producing oil and gas.
- Refining oil and gas.
- Selling oil and gas.
How are the higher oil and gas prices treating Cenovus Energy? We can look to the company’s most recent quarterly earnings to get a clue. In its most recent quarter, CVE delivered:
- $1.37 billion in cash from operations (up from a $800 million outflow).
- $1.28 billion in free funds flow (up from a $600 million outflow).
- $224 million in net income (up from a $235 million loss).
Suncor Energy Suncor Energy (TSX:SU)(NYSE:SU) is another Canadian energy stock like Cenovus Energy. Much like Cenovus, it is a fully integrated energy company, involved in extracting, refining, and selling oil. It is best known for its chain of Petro-Canada gas stations where it sells oil directly to Canadian consumers. It also exports oil to U.S. markets like Colorado.
In its most recent quarter, Suncor Energy delivered:
- Over $2 billion in cash flow.
- $722 million in operating income.
- $868 million in net income.
The post 2 No-Brainer Energy Stocks to Profit from Rising Oil appeared first on The Motley Fool Canada.
Fool contributor Andrew Button has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.
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