Here’s a good way to cash in on oil’s rise

Article Excerpt

Investors have moved away from oil stocks in the past few months due to government mandates to cut carbon emissions. However, it’s likely crude prices will move up over the next few years as producers focus on their current properties and spend less on exploration. That lack of new output will benefit producers like Cenovus, whose reserves (including Husky) should last 39 years. CENOVUS ENERGY INC. $13 is a buy. The company (Toronto symbol CVE; Conservative Growth Portfolio, Resources sector; Shares outstanding: 2.0 billion; Market cap: $26.0 billion; Price-to-sales ratio: 1.0; Dividend yield 0.5%; TSINetwork Rating: Extra Risk; www.cenovus.com) completed its all-stock acquisition of rival oil producer Husky Energy Inc. (Toronto symbol HSE) on January 1, 2021. Cenovus shareholders now own 61% of the combined company, with Husky shareholders holding the other 39%. Cenovus is now Canada’s third-largest producer of oil and natural gas. Its oil sands operations in Alberta account for about 74% of its crude production, followed by conventional oil (17%) and offshore…