The Daily Chase: Oil extends rally; BCE boosts dividend and spending plans VIDEO SIGN OUT
West Texas Intermediate is inching ever closer to US$60 per barrel as oil extends a rally thatâs seen the price nearly double since late April. OPEC+ injected some additional optimism into the market yesterday, with its claim of 101 per cent compliance with production quotas. Weâll continue gathering market intel on crudeâs rally juxtaposed against the still-daunting threat of COVID-19 and the gradual transition to renewable energy.
SUNCOR NAVIGATES COVID IMPACT
Lots to sift through at Suncor Energy: it swung to a fourth-quarter operating loss and funds from operations were halved amid pandemic fallout. Both metrics, however, improved sequentially. And there are several notable one-time items: in addition to the previously-announced impairment on West White Rose, Suncor booked a $142-million provision tied to Keystone XL. And, subsequent to quarter-end, Suncor says i
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Travis Hoium has been writing for fool.com since July 2010 and covers the solar industry, renewable energy, and gaming stocks among other things. Follow @TravisHoium
Energy stocks are in a state of flux early in 2021. Traditional oil and gas companies are looking at a potential future of declining demand as electric vehicle (EV) sales increase. But on the renewable energy side, wind and solar stocks that are taking market share are trading at nosebleed levels.
As investors balance this risk/reward dynamic, one company stands out as having macro tailwinds while offering a reasonable valuation for investors:
Brookfield Renewable
GWh = gigawatt hours. Data source: Brookfield Renewable Partners.
In the company s earnings press release, CEO Connor Teskey said: 2020 was another year of significant growth for our business. Despite the economic challenges around the world, we delivered record results and continued to broaden our operations, as we look forward to a multi-decade opportunity to advance decarbonization and assist with the transition of global electricity grids to a more sustainable future.
Image source: Getty Images.
Thanks to higher power generation buoyed by organic growth and acquisitions, Brookfield Renewable s normalized funds from operation (FFO) per unit jumped nearly 23% in 2020. While the company s hydropower generation was in line with its long-term average rate, its wind and solar segments reported 51% growth in FFO during the year thanks to acquisitions like that of TerraForm Power.