7 Cheap Energy Stocks To Buy Under $20

02. Cenovus Energy Inc. (NYSE:CVE)

Number of Hedge Fund Holders: 46

Forward P/E Ratio as of September 29: 8.94

Cenovus Energy Inc. (NYSE:CVE) is an integrated energy company based in Calgary, Canada, engaged in developing, producing, refining, and marketing crude oil, natural gas, and refined products in Canada and globally. The company operates across several segments, including Oil Sands, Conventional, Offshore, Canadian Refining, and U.S. Refining, making it a diversified player in the energy sector. Cenovus Energy Inc. (NYSE:CVE) has a forward P/E ratio of 8.94, making it an attractive inclusion among cheap energy stocks trading under $20. The company’s low valuation, coupled with solid fundamentals, positions it as a compelling investment option for value-focused investors looking for exposure to the energy sector.

Cenovus Energy Inc. (NYSE:CVE) reported strong second-quarter 2024 results, driven by its efficient operational performance and disciplined financial management. The company achieved its net debt target of $4 billion in July, which is a significant milestone, allowing it to shift its focus towards returning excess free funds flow to shareholders. During Q2 2024, Cenovus Energy Inc. (NYSE:CVE) generated an operating margin of $2.9 billion and free funds flow of $1.2 billion, supported by robust benchmark crude oil prices and a narrowing light-heavy differential. The company’s oil sands segment, which produced approximately 610,000 barrels per day, saw an operating margin increase of $500 million compared to the prior quarter, reflecting its ability to optimize production and reduce costs.

The company’s commitment to enhancing shareholder value was further highlighted by its efforts in reducing operational costs and improving efficiency across its segments. Production in the conventional segment rose by 2,400 BOE per day, while offshore production increased by 1,300 BOE per day from the previous quarter, demonstrating steady growth. Cenovus Energy Inc. (NYSE:CVE) also remains on track with its oil sands growth projects, including the Narrows Lake tie-back to Christina Lake and the Foster Creek Optimization Project, both of which are expected to drive future growth.

Moreover, hedge fund interest in Cenovus Energy Inc. (NYSE:CVE) increased in Q2 2024, with 46 funds holding positions, up from 44 in the previous quarter. This growing institutional interest signifies confidence in the company’s financial health and strategic direction, making Cenovus Energy a strong contender in the list of cheap energy stocks to buy now.