Oil prices have recovered sharply since February this year amid supply outages and improving fundamentals. Last week, a report showed that crude inventories in the U.S. dropped more than forecast. The data highlighted the fact that production in the U.S. is declining, which should help in improving the fundamentals of the oil market.
Oil & gas stocks have been beaten down since mid-2014 as oil prices have crashed. But given the fact that prices have now recovered and the outlook is bullish, oil & gas stocks are once again finding favor among investors. Some of these oil & gas stocks not only offer capital appreciation but also attractive yields. One such stock is Ensign Energy Services Inc. (TSX: ESI).
Based in Calgary, Canada, Ensign Energy is engaged in the business of providing oilfield services to the oil and gas industry in Canada, the U.S. and internationally.
ESI currently offers a dividend yield of 6.67%. Despite the challenges faced by the oil & gas industry, ESI has an excellent track record when it comes to dividend payments. In the last three months, ESI shares have gained more than 40% as oil prices have rebounded.
