After buying and selling on a subdued word for a number of months, crude oil costs have proven early indicators of a bounce-back in 2024, as escalating geopolitical tensions, particularly within the Center East, are fueling provide issues. Stronger costs may assist vitality firms enhance their profitability, which may result in a rally in vitality shares. Contemplating that, it might be the correct time for buyers so as to add shares of some essentially sturdy oil and fuel firms to their portfolios.

On this article, I’ll spotlight two of one of the best Canadian vitality shares I discover actually enticing to purchase in February 2024 and maintain for the long term.

Worldwide Petroleum inventory

If you happen to’re trying to purchase a high quality vitality inventory at a discount, Worldwide Petroleum (TSX:IPCO) might be price contemplating proper now. This Vancouver-headquartered oil and fuel agency has a robust portfolio of diversified belongings positioned in international locations like Canada, Malaysia, and France. After skyrocketing by 461% within the earlier three years, IPCO inventory at the moment trades with 9.1% year-to-date losses at $14.33 per share with a market cap of $1.8 billion.

Earlier this week, on February 6, Worldwide Petroleum introduced its 2023 monetary outcomes. In the course of the 12 months, the corporate achieved report web manufacturing of a mean web manufacturing of 51,100 boepd (barrels of oil equal per day) with working prices of US$17.6 per barrels of oil equal.

Based mostly on its 2024-2028 marketing strategy outlook, the corporate goals to realize a mean web manufacturing of 55,000 boepd. In its newest earnings report, Worldwide Petroleum additionally highlighted the progress of the Blackrod Part One venture in Canada by confirming its growth schedule and funds, which may play an important function in accelerating its monetary development developments in the long term.

Given these constructive components and its constant give attention to returning worth to shareholders by means of share buybacks, the current decline in IPCO inventory might be a chance for long-term buyers to purchase it at a discount.

Canadian Pure Sources inventory

One other prime Canadian vitality inventory I discover enticing to purchase in February is Canadian Pure Sources (TSX:CNQ). This Calgary-headquartered firm is among the many world’s largest impartial crude oil and pure fuel producers, with a well-diversified portfolio of belongings primarily in North America.

It at the moment has a market cap of $ 88.3 billion because the inventory trades at $81.53 per share after sliding by practically 6% in 2024 thus far. This 12 months’s correction in CNQ inventory comes after it greater than doubled in worth within the earlier three years. On the present market value, the inventory additionally presents a lovely 4.9% annualized dividend yield and distributes these payouts each quarter.

Whereas Canadian Pure hasn’t but introduced its fourth-quarter outcomes, its common quarterly manufacturing volumes within the third quarter reached a report of about 1.39 million boepd. Sturdy volumes for each liquids and pure fuel contributed to its report quarterly manufacturing final quarter.

Furthermore, Canadian Pure’s low-risk belongings, sturdy steadiness sheet, and decades-long monitor report of operational excellence make it a strong funding possibility within the Canadian vitality sector to purchase now and maintain for the long run.