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Capitulation. “The action of surrendering or ceasing to resist and opponent or demand.” As investors, oil and gas stocks are our opponent. And they have been kicking our butts. But it is always darkest before sunrise, and it looks like the conditions are setting up to speed up the coming of this sunrise for energy stocks. First, the Alberta premier recently mandated an almost 9% production cut in order to increase Canadian oil prices, and with the differential shrinking to roughly $10 as Canadian oil prices have since soared, we’re moving in the right direction. Second, federal action in the form of $1.6 billion in aid is coming in order to promote and support Canada’s energy sector. Here are the three oil and gas stocks to buy for diversified energy exposure as capitulation nears and investors start thinking of potential upside — one heavily weighted toward oil, one heavily weighted toward natural gas , and one energy services company. Canadian Natural Resources Ltd (TSX:CNQ) (NYSE:CNQ) Canadian Natural is a cash machine that continues to generate strong cash flows and returns for shareholders, yet CNQ stock is down 28% year to date. In the first nine months of 2018, Canadian […]
