3 Canadian energy stocks with attractive price/cash flow ratios

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Canadian energy stocks on our list look attractive based on price to cash flow ratio

SmallCapPower | January 31, 2022: With the price of WTI oil hitting $80 a barrel, many oil and gas companies have been overwhelmed with cash. Today we discovered three Canadian energy stocks with price-to-cash-flow ratios below 7. The price-to-cash-flow (P/CF) ratio is a multiple that investors use to measure the value of the price of one share relative to its operating cash flow. cash flow per share, adding non-cash expenses such as amortization. The ratio is commonly used to value companies with large non-cash expenses, such as depreciation, which can skew net income.

*Data on stock prices and other measures as of January 28, 2022

Parex Resources Inc. (TSX: PXT) – $25.69
oil and gas

Parex Resources is a mid-sized Calgary-based energy company that produces 49,000 barrels per day and is focused on the sustainable and profitable production of conventional oil and gas. PXT holds interests in onshore exploration and production blocks totaling approximately 2.3 million gross acres. Parex posts a gross margin of 61% and is committed to sustainably increasing its reserves, production and cash flow. Parex has increased production by 50% since 2017 and is led by an experienced management team that has increased its cash flow per share by 350% over the past five years.

  • Market capitalization: $3,161.1 million
  • Return over 7 days: +8.7%
  • Return over 30 days: +16.7%
  • 30-day average trading volume: 543,473
  • Price to Cash Flow: 5.8x

Canadian Natural Resources Ltd. (TSX: CNQ) – $65.26
oil and gas

Canadian Natural Resources is one of the largest oil and natural gas producers in Western Canada, complemented by operations in the North Sea and offshore Africa. The Company’s portfolio includes light and medium oil, heavy oil, bitumen, synthetic oil, natural gas liquids and natural gas. Production averaged 1.16 million barrels of oil equivalent per day in 2020, and the Company estimates that it holds more than 11.5 billion boe of proven and probable crude oil and natural gas reserves. . Oil and natural gas prices were up 60% and 55% from a year ago, boosting CNQ’s cash flow which grew 200% in 2021. CNQ also increased its dividend of 25% in fiscal year 2021, on 22n/a annual dividend increase.

  • Market cap: $60.3 billion
  • Return over 7 days: +1.6%
  • Return over 30 days: +18.8%
  • 30-day average trading volume: 5,220,069
  • Price to Cash Flow: 6.9x

ARC Resources Ltd. (TSX: ARX) – $13.22
oil and gas

ARC Resources is an independent energy company engaged in the acquisition, exploration, development and production of conventional oil and natural gas in Western Canada. The Company produces light, medium and heavy crude, condensate, natural gas liquids and natural gas. Production averaged 163.6 thousand barrels of oil equivalent per day in 2020, and the Company estimates that it holds approximately 879 million boe of proven and probable crude oil and natural gas reserves. ARC announced a dividend increase of $0.10/share and management said the increase reflected an increase in the company’s profitability and cash flow.

  • Market capitalization: $9,888.3 million
  • Return over 7 days: +8.4%
  • Return over 30 days: +18.3%
  • 30-day average trading volume: 3,644,662
  • Price to Cash Flow: 4.5x

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