Canadian energy stocks gained significant momentum in 2022, especially after oil and gas prices soared to new highs after the Russian invasion of Ukraine in late February. However, the bull market has settled over the past two months. That does not mean investors should wholly turn their back on the energy sector. Indeed, this bull market could still have legs in this uncertain geopolitical climate.
Cenovus Energy (TSX:CVE)(NYSE:CVE) is a Calgary-based company that is engaged in the development, production, and marketing of crude oil, natural gas liquids, and natural gas in North America and the Asia Pacific Region. Shares of this energy stock have climbed 48% in 2022 as of mid-afternoon trading on April 29. The stock has soared 147% year over year.
The company released its first quarter 2022 results on April 27. Cash from operating activities surged 499% year-over-year to $1.36 billion. Meanwhile, adjusted funds flow increased 126% to $2.58 billion. Cenovus reported net earnings of $1.62 billion or $0.81 per share – up from $220 million or $0.10 per share in the previous year. Overall, it was a very strong quarter for Cenovus as it was powered by higher oil and gas prices and improved production.
This energy stock announced that it would triple its annual dividend payout to $0.42 per share. That now represents a modest 1.7% yield. Shares of Cenovus are still trading in favourable value territory compared to its industry peers.
