Bet on Canadian Energy Adaptability With These 3 Stocks

Canadian energy companies like Suncor Energy Inc. (TSX:SU)(NYSE:SU) are confident in a bright future, even with the push towards renewable energy across the globe.

| More on:

Oil prices have rallied over the past week and hit 2018 highs on the back of geopolitical tensions in Iran and Venezuela. On March 22, President Donald Trump announced that H.R. McMaster would be replaced as National Security Advisor by John Bolton. Bolton was the former U.N. ambassador for the Bush administration and a notorious hawk, especially towards Iran. He has favoured scrapping the current Iran nuclear agreement.

The rally has boosted Canadian oil stocks over the past week after what has been a difficult start to 2018. The risks of a global trade war worsening, as the U.S. pursues tariffs also represents a threat to the industry.

Clean energy advocates have increasingly applied pressure on Canada’s energy giants to invest and adopt clean energy technology going forward. Several companies have taken steps to signal support for green energy policy, while also exploring new technology that could have the potential to slash greenhouse gas emissions.

Badger Daylighting Ltd. (TSX:BAD)

Badger is a Calgary-based provider of non-destructive hydrovac excavation services. Hydro excavation is the only known non-destructive method of digging and uses pressurized water and vacuum systems to expose underground infrastructure. Badger stock has dropped 14.9% in 2018 as of close on March 22, and shares are down 28.3% year over year. The company is set to release its 2017 fourth-quarter and full-year results on March 27.

In the third quarter of 2017, the company saw hydrovac service revenue climb to $129.4 million compared to $103.7 million in the prior year. Badger reported revenue growth due to higher activity in its U.S. and Canadian geographic and end use markets. Badger offers a monthly dividend of $0.038 per share, representing a 1.8% dividend yield.

Suncor Energy Inc. (TSX:SU)(NYSE:SU)

Suncor is a Calgary-based integrated energy company. Shares of Suncor have dropped 7.1% in 2018 thus far. The stock is still up 5.3% year over year. Suncor CEO Steve Williams recently expressed optimism in the long-term viability of the oil sands project, predicting that it could last over a century, even in a world that embraces renewables. Suncor plans to reduce carbon intensity by 30% by 2030, and it intends to invest heavily in renewable energy as part of that plan.

In the fourth quarter, funds from operations hit a record $3.016 billion. Net earnings also more than doubled to $1.38 billion compared to $531 million in the prior year. Suncor offers a quarterly dividend of $0.36 per share, representing a 3% dividend yield.

Crescent Point Energy Corp. (TSX:CPG)(NYSE:CPG)

Crescent Point is a petroleum and natural gas company based in Calgary. Its stock has dropped 3.3% in 2018 so far. In July 2017, Crescent announced that it would not renew its membership with the Canadian Association of Petroleum Producers, as it stated the organization was not doing enough to combat climate change. In the fourth quarter, Crescent Point saw operating costs rise by 5%, while production ramped up by 8.4%. Crescent Point reduced its dividend to $0.36 per share in 2017, representing a 3.9% dividend yield.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Ambrose O'Callaghan has no position in any of the stocks mentioned. Badger Daylighting is a recommendation of Stock Advisor Canada.

More on Energy Stocks

Arrowings ascending on a chalkboard
Energy Stocks

Beat the TSX With This Cash-Gushing Dividend Stock

Canadian Natural Resources stock is well set up to beat the TSX as it continues to generate strong cash flows…

Read more »

energy industry
Energy Stocks

2 TSX Energy Stocks to Buy Hand Over Fist Now

These two rallying TSX energy stocks can continue delivering robust returns to investors in the long term.

Read more »

green energy
Energy Stocks

1 Magnificent TSX Dividend Stock Down 37% to Buy and Hold Forever

This dividend stock has fallen significantly from poor results, but zoom in and there are some major improvements happening.

Read more »

oil tank at night
Energy Stocks

3 Energy Stocks Already Worth Your While

Here's why blue-chip TSX energy stocks such as Enbridge should be part of your equity portfolio in 2024.

Read more »

Solar panels and windmills
Energy Stocks

1 Beaten-Down Stock That Could Be the Best Bet in the TSX

This renewable energy stock could be one of the best buys you make this year, as the company starts to…

Read more »

Dice engraved with the words buy and sell
Energy Stocks

Is Enbridge Stock a Buy, Sell, or Hold?

Here's why Enbridge (TSX:ENB) remains a top dividend stock long-term investors may want to consider, despite current risks.

Read more »

Gas pipelines
Energy Stocks

If You Had Invested $5,000 in Enbridge Stock in 2018, This Is How Much You Would Have Today

Enbridge's high dividend yield hasn't made up for its dismal total returns.

Read more »

Bad apple with good apples
Energy Stocks

Avoid at All Costs: This Stock Is Portfolio Poison

A mid-cap stock commits to return more to shareholders, but some investors remember the suspension of dividends a few years…

Read more »