2 Middle Canadian Energy Stocks to Watch

Oil and gas prices appeared to hit rock bottom in the middle of April. The price of WTI Crude and Western Canadian Select (WCS) plunged into negative territory. This would have been unthinkable even during past oil price routs. It has been the perfect storm for the sector as the Saudi-Russia price war coincided with the COVID-19 pandemic. The latter has obliterated global demand for oil and gas.

Fortunately, oil has rebounded in late April. The price of WTI Crude had risen above the $15 mark at the time of this writing. Meanwhile, Western Canadian Select (WCS) was above the $10 mark. Energy stocks have rebounded just as sharply, but it is not too late to pounce on discounts.

Shawcor (TSX:SCL) is an energy services company that provides products and services for the infrastructure, energy, and transportation markets around the world. Its shares have plunged 81% over the past three months as of close on April 29. The stock has climbed 42% over the past month.

Shares of Shawcor possess a very favourable price-to-book value of 0.1. The energy sector is in crisis, but Shawcor still has solid growth potential going forward. This is one of the mid-tier energy stocks worth taking a gamble on right now.

Freehold Royalties (TSX:FRU) is more suited to investors on the hunt for a discounted income-yielding equity. The company has an excellent balance sheet, but the stock is slightly overvalued. Freehold last increased its monthly distribution to $0.015 per share. This represents a still-solid 4.7% yield.