Canadian Energy Giants See Election Boost Taper Off as Oil Prices Soften

On April 16 the United Conservative Party (UCP) charged its way to power in the Alberta provincial election. The result did not come as a shock and the UCP collected a significant majority and over 50% of the total votes.

UCP leader Jason Kenney has fashioned himself as a defender of Canada’s energy giants. Some of the top energy stocks have bounced around since the election.

Suncor (TSX:SU)(NYSE:SU) is one of the largest integrated energy companies in Canada. Shares of Suncor fell 2.61% on May 2. The stock has climbed 11.7% in 2019 so far. Oil prices have rallied to start 2019 but have showed weakness in late April and early May. That could spell trouble for Suncor and its peers.

Imperial Oil (TSX:IMO)(NYSE:IMO) is another integrated oil giant. Its stock fell 1.11% on May 2. Shares have increased 10.7% in 2019 so far.

Imperial Oil and Suncor were both vocal in opposing the production cuts that were introduced by the NDP government. The company’s quarterly profit fell 16% year-over-year in the first quarter, an Imperial Oil blamed those same cuts.

Encana (TSX:ECA)(NYSE:ECA) is yet another Calgary-based oil and gas producer. Shares dropped 2.45% on May 2. The stock has still climbed 11.3% in 2019 so far.

The company reported a $245-million loss in the first quarter due to restructuring and an unrealized hedging loss. Shares are trading at the low end of its 52-week range.