Canada's Oil and Gas Stocks Shine as Inflation Bites
Canadian oil and gas stocks have gained attention from retail investors due to rising inflation and higher oil prices, driven by the ongoing conflict in Iran. Three Canadian energy producers that are directly exposed to this news are Cavvy Energy (TSX:CVVY), Topaz Energy (TSX:TPZ), and Surge Energy (TSX:SGY). These companies have different business models, but all benefit from higher commodity prices.
Cavvy Energy is a midstream and upstream producer focused on natural gas, natural gas liquids, condensate, and sulphur in Alberta and northeast British Columbia. The company has a market value of about CA$588 million and combines fee-based sour gas plants and sulfur contracts with a growing drilling inventory.
Topaz Energy is a royalty and infrastructure energy company that earns a share of production from oil and gas fields and charges fees for using its processing and handling assets. It currently has a market value of roughly CA$4.8 billion and provides direct leverage to stronger commodity pricing through its asset-light royalty model.
Surge Energy, on the other hand, is an oil and gas producer focused on light and medium crude in Western Canada. The company generated about CA$534 million of revenue from oil and gas exploration and production in Canada and has a market value of roughly CA$1.1 billion.