7 Best Oil Stocks under $20

2. Cenovus Energy Inc. (NYSE:CVE)

Number of Hedge Funds Holders: 46

Share Price: $17.11

Cenovus Energy Inc. (NYSE:CVE) is an integrated oil and gas company engaged in the exploration, production, refining, and marketing of crude oil, natural gas, and other petroleum products. It is a key player in the energy sector, operating across the segments of oil sands, conventional resources, and offshore drilling in Canada and the United States. The company’s diverse portfolio includes the Christina Lake, Foster Creek, and Sunrise projects.

Cenovus Energy Inc. (NYSE:CVE) reported an operating margin of $2.9 billion in Q2 2024, primarily driven by higher oil prices and strong oil production. The adjusted funds flow reached $2.4 billion, while the free funds flow reached $1.2 billion for the quarter. This allowed the company to invest $1 billion in dividend payments and share buybacks during the quarter.

It produced 610,000 barrels per day (bpd) from its oil sands assets, generating an operating margin of $2.7 billion, up by $500 million from the previous quarter. This increase is attributed to effective cost control and stable production.

However, earnings per share (EPS) for the quarter stood at $0.53, down by $0.90 per share.  The company faced some operational hurdles during Q2; particularly, wildfires across Northern Alberta forced it to reduce staffing. Additionally, the planned production at Christina Lake and the Lloydminster upgrade experienced some production downtime. Moreover, the Christina Lake turnaround is also expected to reduce third-quarter production by 45,000 bpd. Therefore, the stock has declined by nearly 14% over the past month.

Despite the challenges, Cenovus Energy Inc. (NSYE:CVE) delivered significant progress in its key oil sands growth projects. The Narrows Lake tie-back to Christina Lake is 88% complete with the first oil from the Narrows Lake anticipated by mid-2025. Moreover, Sunrise is progressing well with two new pads expected to come online by early 2025.

Given the growth prospects, 46 hedge funds have collectively invested $1.2 billion in the company as of Q2 2024, according to Insider Monkey’s database. Thus, CVE makes it to our list of the best energy stocks under $20 to buy.