The S&P/TSX Composite Index rose 96 points to close out the previous week on Friday, November 18. Meanwhile, the S&P/TSX Capped Energy Index also finished the day in the red. Canadian energy stocks had a fantastic first half in 2022. However, that momentum petered off significantly in the face of rising interest rates and increased production. The threat of an economic downturn has also loomed large over the broader oil and gas sector. Despite that, these are still equities that are worth targeting for the long term.
Today, I want to focus on three oil stocks that are worth purchasing in the final weeks of 2022. Let’s jump in.
This oil stock is deeply discounted in the second half of November
Tourmaline Oil (TSX:TOU) is a Calgary-based company that is engaged in the acquisition, development, and production of oil and natural gas properties in the Western Canadian Sedimentary Basin. Shares of this oil stock have soared 89% in 2022 as of close on November 18. The stock is only up 7.2% month over month, with the bulk of its gains occurring over the period that covered late 2021 to the late spring of 2022.
This company released its third-quarter fiscal 2022 results on November 2. Total revenue climbed 44% year over year to $1.74 billion. Meanwhile, revenues surged 77% to $5.56 billion in the first nine months of fiscal 2022. Cash flow increased 38% to $1.05 billion in the third quarter (Q3) of 2022 and 78% to $3.48 billion in the year-to-date period. Net earnings were reported at $4.51 billion, or $13.21 per diluted share — up a whopping 339% and 298%, respectively, from the first nine months of fiscal 2021.
Shares of this oil stock currently possess a very favourable price-to-earnings (P/E) ratio of 4.9. It hiked its quarterly dividend to $0.25 per share, which represents a modest 1.2% yield.
Don’t sleep on this high-yield stock right now
TC Energy (TSX:TRP) operates as an energy infrastructure company. It is also based in Calgary. This oil stock has increased 7.1% in the year-to-date period. That has put the stock into the black in the year-over-year period.
Investors got to see TC Energy’s Q3 fiscal 2022 earnings on November 9. It delivered net income of $841 million, or $0.84 per share — up from $779 million, or $0.80 per common share, in the previous year. EBITDA stands for earnings before interest, taxes, depreciation, and amortization. TC Energy posted comparable EBITDA of $2.46 billion in Q3 2022 — up from $2.23 billion in Q3 fiscal 2021.
This oil stock last had a solid P/E ratio of 19. Better yet, it offers a quarterly dividend of $0.90 per share. That represents a strong 5.6% yield.
One more undervalued oil stock I’d look to snatch up today
Canadian Natural Resources (TSX:CNQ) is the third and final oil stock I’d look to snatch up, as we come into the final full week of November. This Calgary-based company acquires, explores for, develops, produces, markets, and sells crude oil, natural gas, and natural gas liquids (NGLs). Shares of Canadian Natural Resources have climbed 46% in 2022.
In Q3 2022, the company delivered a record profit of $2.8 billion — up 28% from the prior year. The company was bolstered by higher energy prices that rose as a result of weakening supply and the Russia-Ukraine war. Shares of this oil stock possess a very attractive P/E ratio of 7.8. Canadian Natural Resources hiked its quarterly dividend by 13% to $0.85 per share, representing a solid 4.2% yield.
