Several profitable Canadian stocks are in the energy sector, particularly in the Oil & Gas segment. Two established companies, Canadian Natural Resources and Cenovus Energy, have shown strong returns and are expected to continue performing well.
Canadian Natural Resources and Cenovus Energy were ranked 19th and 23rd in the 2024 TSX30 List, which highlights the top-performing TSX stocks. According to the International Energy Agency (IEA), the global oil and gas industry is not expected to decline significantly over the next 30 years.
The Canadian oil production is projected to increase from 5.6 million barrels per day in 2021 to 6.4 million barrels per day in 2040. IEA estimates that North America’s total oil and gas investment could reach around US$5.4 trillion between 2022 and 2050.
Both Canadian Natural Resources and Cenovus Energy are attractive choices for growth and dividend investors, as well as retirees looking for exposure to Canada’s oil and gas industry.
Cenovus Energy, although smaller in market capitalization compared to Canadian Natural Resources, has shown strong financial performance. With increasing revenues and net earnings, the company has a plan to return excess funds flow to investors and maintain a steady net debt.
On the other hand, Canadian Natural Resources, as a larger independent crude oil and natural gas producer, offers a higher dividend yield and has a long history of dividend increases. The company’s commitment to returning free cash flow to shareholders and its strategic acquisitions make it a compelling investment option.
In conclusion, while both Cenovus Energy and Canadian Natural Resources are profitable investment choices in Canada’s oil and gas industry, Canadian Natural Resources has the edge due to its market capitalization, dividend growth streak, and larger payout.
