As investors dump oil holdings, Canadian Natural overtakes Suncor as Canada's most valuable energy company

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Refining businesses hurting during pandemic while those with strong natural gas assets outperform

“Sector exposure is at 30-year lows,” said BMO Capital Markets analyst Randy Ollenberger, adding that “exposure to oil and gas is what it was in 1998 and 1999 during the first Internet boom.”

The S&P 500 Energy Index has declined 52 per cent this year, compared to the broad index which has risen 16 per cent.In Canada, a six-year downturn in the sector has been exacerbated by the COVID-19 pandemic this year and the country’s largest energy companies — including Canadian Natural, Suncor, Imperial Oil Ltd., Husky Energy Inc. and Cenovus Energy Inc. — are trading at less than half of their value from a year ago, and a quarter of their value from just two years ago.a US$1.

Suncor, once the second most valuable company in Canada behind Royal Bank of Canada, has plunged an astounding 63 per cent this year from $42.56 per share on Jan. 1 to $15.55 each on Oct. 1, marking the company’s lowest price since 2003, when it was a much smaller oil producer. RBC has also lost its crown to Shopify Inc., or 15 per cent of its employees, on Oct. 2. Suncor shares traded up less than 1 per cent to $15.97 each midday Monday.

Suncor did not comment on whether its place as the largest Canadian oil company by market capitalization has helped the company attract investors in the past, and how it was managing the slide to second place. “Don’t judge a book by its cover. Everybody thinks CNRL is a heavy oil producer but they are also the country’s largest natural gas producer,” said Rafi Tahmazian, senior portfolio manager and partner with Canoe Financial.

 

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This is good a Canadian company and if I am not mistaken a Alberta based company.

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