The five top oil and gas stocks on the TSX and TSXV are making gains in the face of market volatility.
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Oil and gas prices rallied in 2021 as demand returned to pre-COVID-19 levels.
Despite policy moves by governments looking to transition to cleaner energy sources, oil and natural gas are expected to continue to play an important role in the world’s energy mix.
Geopolitical uncertainty and the pandemic continue to weigh on oil and gas prices, but analysts expect healthy demand levels for oil and natural gas heading into 2022. The five top oil and gas stocks on the TSX and TSXV outlined below have displayed significant growth in 2021 on stronger oil and gas prices.
All yearly performance and share price data was obtained on December 13, 2021, using TradingView’s stock screener. All top oil and gas stocks listed had market caps above C$10 million at that time.
1. Journey Energy
Year-to-date increase: 834.78 percent; current share price: C$2.17
Journey Energy (TSX:JOY) is an explorer and producer focused on oil-weighted operations in Western Canada. The company operates in the central and south regions of Alberta.
In late June, Journey Energy entered into a definitive agreement to purchase a private company that primarily operates near Nordegg and Grande Cache, Alberta. The company produces approximately 610 barrels of oil equivalent per day (boe/d) containing 76 percent natural gas. In late November, Journey Energy reported C$92.2 million in net income and C$11.27 million in adjusted cash flow in its Q3 financial and operating results. Shares of Journey Energy reached their highest point for 2021 on December 8, coming in at C$2.60.
2. Inplay Oil
Year-to-date increase: 739.13 percent; current share price: C$1.94
Inplay Oil (TSX:IPO) is a light oil development and production company that is targeting Alberta's Cardium Formation. The company, which is also based out of the western province, is focused on "large oil-in-place pools with low recovery factors, low declines and long-life reserves," according to its website.
In early November, Inplay Oil reported record quarterly production for the second consecutive quarter. The company attributed its success to the continued outperformance of six 100 percent Cardium wells drilled in Pembina. Also in Q3, Inplay completed and brought online three 100 percent Pembina Cardium 1.5 mile wells that were drilled on the company’s recently acquired lands.
The company saw its share price rise to a year-to-date high of C$2.26 on November 15.
3. Perpetual Energy
Year-to-date increase: 625 percent; current share price: C$0.58
Perpetual Energy (TSX:PMT) owns a diversified portfolio that includes both exploration-stage and producing properties. The company's Alberta-spanning portfolio has conventional natural gas assets in West-Central Alberta, heavy crude oil and shallow conventional natural gas in Eastern Alberta and undeveloped bitumen leases in Northern Alberta. In July, Perpetual Energy created Rubellite Energy (TSX:RBY) to manage its Clearwater assets.
Shares of Perpetual Energy reached their highest level for 2021 on October 13, coming in at C$0.93.
4. NuVista Energy
Year-to-date increase: 580.85 percent; current share price: C$6.40
NuVista Energy (TSX:NVA) is exploring for and producing oil and natural gas from reserves in the Western Canadian Sedimentary Basin. The company’s flagship operation is the scalable condensate-rich Montney formation in the Wapiti area of the Alberta Deep Basin.
In early November, NuVista released strong Q3 financial and operating results, including production of 51,005 boe/d, which falls within its guidance of 50,000 to 52,000 boe/d. The company also achieved better-than-expected cash flow of C$80.6 million in the quarter. This represents a 45 percent increase over this year's second quarter, and a 94 percent increase compared to Q3 2020. The company’s share price hit a high of C$7.71 on November 16.
5. Petro Victory Energy
Year-to-date increase: 534.38 percent; current share price: C$2.18
Brazil-focused Petro Victory Energy (TSXV:VRY) is engaged in the acquisition, development and production of crude oil and natural gas assets. The company has working interests in 28 licenses covering 168,433 acres in four oil-producing basins in the country. It also has a royalty agreement related to a concession in Paraguay.
In early May, Petro Victory announced independently certified reserves for the first time ever. According to the company, its Andorinha, Carapitanga and Sao Joao oil fields have proven plus probable reserves of 2.83 million barrels of oil. Its share price rose from the C$0.31 level to hit C$4.89, its highest point so far this year, on May 4.
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Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
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