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.
