The S&P/TSX Composite Index was up 74 points in early afternoon trading today. The industrials and energy sector led the way as the broader Canadian market continued to defy pullback projections. Oil and gas prices have built huge momentum in the early fall due to tight supply and rising global demand. Today, I want to look at three energy stocks priced under $10 that are worth your attention. Let’s jump in.
This energy stock is on fire over the past month
Secure Energy (TSX: SES) is a Calgary-based company that provides specialized solutions to upstream oil and natural gas companies. Shares of this energy stock have climbed 136% in 2021 at the time of this writing. The stock is up over 300% in the year-over-year period.
The company unveiled its second-quarter 2021 results on July 27. Total revenue rose to $511 million compared to $291 million in the prior year. It posted revenues of $1.17 billion for the first six months of 2021 — up from $896 million for the same period in 2020. Meanwhile, adjusted EBITDA rose to $30.0 million in Q2 2021 over $20.4 million in the second quarter of the previous year.
This energy stock is now trading very close to its 52-week high. Secure Energy is in favourable value territory in comparison to its industry peers. It is well positioned to reward investors as oil and gas prices continue to surge.
A red-hot oil and gas equity worth snatching up in October
Baytex Energy (TSX: BTE)(NYSE: BTE) is another oil and gas company that is based in Calgary. It is engaged in the acquisition, development, and production of oil and natural gas in Canada and the United States. Shares of this energy stock have shot up 459% in 2021 at the time of this writing. The stock is up 800% from the prior year.
Investors can expect to see its third-quarter 2021 results in early November. In Q2 2021, Baytex’s production jumped 3% from the prior year to 81,162 barrels of oil equivalent per day. Meanwhile, adjusted funds flow increased 12% from the prior year to $176 million, or $0.31 per basic share. These solid results spurred the company to increase its production guidance for the full year.
Shares of this energy stock last had a very attractive price-to-earnings (P/E) ratio of 1.9. This puts it in fantastic value territory compared to its top competitors.
One more undervalued energy stock with a solid dividend
Whitecap Resources (TSX: WCP) is the third energy stock priced under $10 that I’d suggest investors scoop up today. This energy stock has increased 57% in the year-to-date period. Its shares are up 195% compared to the same time in 2020.
The company released its second-quarter 2021 results on July 29. Petroleum and natural gas revenues rose to $1.06 billion for the first six months of 2021 — up from $414 million for the same period in 2020. Meanwhile, funds flow more than doubled to $454 million.
Better yet, this energy stock possesses a very favourable P/E ratio of 8.3. It offers a monthly dividend of $0.016 per share. That represents a 3.5% yield.
