Kalkine Media - Energy stocks have surged on the TSX in 2024, with crude oil prices hitting a five-month high and the sector enjoying a 24.8% year-to-date gain driven by rising prices and increased production volume. Here are some top picks across different market-cap segments, including TSX energy stocks:
Large-cap:
Suncor Energy (TSX:SU) (TSX:SU) is a leading energy stock favored by income investors. With a market capitalization of $67.7 billion, Suncor specializes in producing synthetic crude from oil sands and owns the Petro Canada brand. Despite a decline in full-year net earnings in 2023, the company reported record oil sands performance. Suncor's share price is $52.59 (+25.35% year-to-date), with a dividend yield of 4.15% following a recent 5% dividend hike.
Mid-cap:
Crescent Point Energy (TSX:CPG) (TSX:CPG) is a $7.4 billion oil and gas company focusing on light oil production in southern Saskatchewan and central Alberta. With a share price of $11.98, Crescent Point has seen a 31.8% year-to-date gain, along with a dividend yield of 3.85%. The company reported strong financial results in Q4 2023, including a net income of $951.2 million compared to a net loss in the same period the previous year. Crescent Point plans to seek shareholder approval for a corporate name change to Veren, symbolizing its transformation.
Small-cap:
Advantage Energy Ltd. (TSX:AAV) presents an attractive opportunity for growth investors. With a market capitalization of $1.7 billion, Advantage Energy operates in the Montney fossil gas and liquids resource play. Despite a decline in net income in 2023 due to lower natural and crude oil benchmark prices, the company's share price has risen by 21.3% year-to-date. Advantage Energy ranked 18th on the 2023 TSX30 List, highlighting its growth potential.
Looking ahead, Morgan Stanley (NYSE:MS) anticipates tightness in the oil market in Q2 and Q3, driven by OPEC supply restraints, potential lower Russian production, and seasonal demand upticks. The investment bank forecasts the Brent crude oil price to rise to $94 per barrel by the third quarter of 2024 from the current level of US$89.94 per barrel.