Two energy producers with gains ahead

Article Excerpt

Oil and gas stocks have moved up as the U.S. and other economies recover. The war in Ukraine has also spurred prices. We recommend that most investors maintain exposure to the oil and gas industry as part of a balanced portfolio. But to cut risk, you should focus on producers with positive cash flow even at low energy prices. Here are two stocks that meet that requirement—and pay a dividend. ENERPLUS CORP., $25.01, is a buy for aggressive investors. The company (Toronto symbol ERF; Shares o/s: 232.4 million; Market cap: $5.8 billion; TSINetwork Rating: Speculative; Dividend yield: 1.2%) produces oil and gas mostly from properties in the Bakken area in North Dakota, the DJ Basin in Colorado and the Marcellus Shale in Pennsylvania. Enerplus reported increased output for the quarter ended September 30, 2022. The latest production translates into an average 107,808 barrels of oil equivalent per day (63% oil and 37% natural gas), up 8.6% from 99,279 barrels a year earlier. Meanwhile, the production outlook is very positive,…