The S&P/TSX Composite Index moved up 84 points on April 5. The Index was bolstered by a solid performance from energy stocks to finish the week. Production cuts enacted by the Alberta government have allowed the price of Western Canadian Select (WCS) to narrow the dangerous gap it had with West Texas Intermediate (WTI). Now that differential sits at less than $10 apart.
Encana (TSX:ECA)(NYSE:ECA) is a Calgary-based oil and gas producer. Shares of Encana climbed 3.23% on April 5. The stock has increased 21.7% in 2019 so far. It is expected to release its first-quarter results in late April or early May.
MEG Energy (TSX:MEG) is another Calgary-based company which is engaged in oil sands development and production. The stock rose 5.16% on April 5. Shares have dropped 28.6% in 2019 so far. The company is expected to release its first-quarter results for 2019 later this month.
Baytex Energy (TSX:BTE)(NYSE:BTE) is yet another oil and gas producer based in Calgary. Shares of Baytex jumped 7.66% on April 5. The stock is down 0.8% in 2019 so far. Baytex is set to release its first-quarter results for 2019 in early May.
All three of the stocks listed above are still trading at the low end of their 52-week range. The Canadian oil patch is still suffering economically ahead of the April 16 Alberta election.
The United Conservative Party is expected to sweep away Rachel Notley’s NDP as it has dominated in the polls. Energy stocks should receive another bump due to the perceived oil-and-gas-friendly nature of this incoming party.
