The S&P/TSX Composite Index was up 186 points in early afternoon trading on Wednesday, July 12. Meanwhile, the S&P/TSX Capped Energy Index was up marginally during the same trading session. Bitumen production from oil sands mining hit a record high of 3.5 million barrels per day (MMb/d).
A recent snapshot from the Canadian Energy Regulator projected that bitumen production would grow steadily through 2040. It is projected to reach 4.5 MMb/d by the end of the forecast period.
Today, I want to discuss whether these top Canadian oil sands stocks are worth snatching up as we approach the midway point in July. Let’s jump in.
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This oil sands stock looks dirt cheap in the first half of July
Imperial Oil (TSX: IMO) is a Calgary-based company that is engaged in the exploration, production, and sale of crude oil and natural gas in Canada. Shares of this oil sands stock have dropped 1.9% month over month at the time of this writing. Its shares have climbed 2% so far in 2023. Investors can see more of its recent performance with the interactive price chart below.
Investors can expect to see the company’s second-quarter fiscal 2023 earnings later this month. In the first quarter of fiscal 2023, Imperial Oil posted net income of $1.24 billion — up $75 million compared to the previous year. The company posted earnings per share (EPS) of $2.13 compared to $1.75 in the first quarter of fiscal 2022.
Shares of this oil sands stock currently possess a very favourable price-to-earnings (P/E) ratio of 5.4. Moreover, Imperial Oil offers a quarterly dividend of $0.50 per share. That represents a 3.1% yield.
Why you can trust Suncor for decades to come
Suncor Energy (TSX: SU) is another top integrated energy company that is based in Calgary. Shares of this oil sands stock have dipped 1.4% over the past month. The stock has dropped 5.1% in the year-to-date period.
This company released its first-quarter fiscal 2023 earnings on May 8. Suncor reported adjusted funds from operations (AFFO) of $1.8 billion. Meanwhile, total oil sands production reached 675,100 barrels per day (bbls/d) in the first quarter of 2023 — down marginally from 685,700 bbls/d in the first quarter of fiscal 2022. Suncor announced the acquisition of TotalEnergies and the remaining working interest in Fort Hills.
Suncor stock has declined 5.1% so far in 2023. Shares of this oil sands stock currently possess an attractive P/E ratio of 6.5. Meanwhile, Suncor offers a quarterly dividend of $0.52 per share, which represents a strong 5.3% yield.
One more oil sands stock I’d snatch up right now
Canadian Natural Resources (TSX: CNQ) is another Calgary-based company that acquires, explores for, develops, products, markets, and sells crude oil, natural gas, and natural gas liquids (NGLs). Its shares have climbed 3.2% month over month as of early afternoon trading on July 12. The stock is up 6.4% so far in 2023.
In the first quarter of 2023, Canadian Natural Resources reported adjusted net earnings of $1.88 billion, or $1.69 per diluted share — down from $2.19 billion or $1.96 per diluted share in the first quarter of fiscal 2022. The company achieved record natural gas production and liquids production in the quarter.
Shares of this oil sands stock possess a favourable P/E ratio of 8.9 at the time of this writing. Moreover, Canadian Natural Resources offers a quarterly distribution of $0.90 per share, representing a solid 4.7% yield.
