Q: Would now be a good time to invest in Natural Gas stocks? My thinking is that the commodity price is low, but demand should increase with increasing energy demands and the price in Canada should increase with the LNG terminal completing in 2025? Could you please support or crush my simple ideas. Thank you. Also, could you please offer some related stock or ETF ideas - either Canadian or American. Many thanks.
5i Research Answer:
We would be fine buying the gas sector right now: stocks are very cheap, balance sheets are strong (very), dividends are growing and there is potential. Note, for Canadian companies while LNG offers growth potential, there are few facilities and any more planned are still a long way from being operational. TOU, BIR, PEY and AAV would be our Canadian choices for the sector. DVN and EXE for the US.