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CNQ & EFX: Should you watch these energy stocks?

Published 2023-04-19, 12:47 a/m
Updated 2023-04-19, 05:15 a/m
© Reuters.  CNQ & EFX: Should you watch these energy stocks?

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Highlights

  • To support higher prices in 2023, numerous oil-producing nations have reduced their production capacities.
  • CNQ stock has a dividend yield of 4.39 per cent
  • Enerflex and Exterran merged in October of last year to become an integrated business

Canadian energy companies have lagged behind the wider markets in recent months as oil prices have declined after a spectacular year in 2022. To support higher prices in 2023, numerous oil-producing nations, including Saudi Arabia, have reduced their production capacities.

This year, oil equities may experience volatility due to the energy sector's strong cyclicality, particularly if recessionary fears materialise. But if you want exposure to the energy sector while exercising prudence, you can think about exploring diverse TSX oil equities.

Here are two Canadian energy stocks and see how they have performed:

Canadian Natural Resources (TSX: TSX:CNQ) It is one of the largest energy companies in Canada, and CNQ stock has a dividend yield of 4.39 per cent. Canadian Natural last announced a quarterly dividend of C$ 0.9 per share.

Canadian Natural achieved solid financial results in 2022 as its net earnings jumped to C$ 10.9 billion from C$ 7.66 billion in 2021. Meanwhile, the basic earnings per share increased to C$ 9.64 compared to C$ 6.4 apiece in the same comparable period.

In 2022, the cash flows from operating activities amounted to C$ 19.39 billion, up from C$ 14.47 billion in 2021.

Enerflex Ltd . (TSX:EFX) (TSX: EFX) It has a market worth of C$ 1 billion, and provides energy infrastructure and energy transition solutions to natural gas markets in the Americas, Europe, and Asia.

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For all products, it also offers aftermarket components and services. In addition, clients can lease or buy-own-operate-maintain Enerflex-owned engineered systems and integrated turnkey products.

Enerflex and Exterran merged in October of last year to become an integrated business that offers solutions for energy infrastructure and transition.

In Q4 2022, the revenue of the company was C$ 689.8 million compared to C$ 321.3 million in Q4 2021. Meanwhile, the gross margin increased to C$ 126.8 million from C$ 55.3 million in the same period.

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.

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