{"id":38661,"date":"2019-09-25T16:16:00","date_gmt":"2019-09-25T16:16:00","guid":{"rendered":"https:\/\/wp2.inovestor.com\/2019\/09\/revisiting-canadian-energy-stocks-in-wake-of-aramco-attack\/"},"modified":"2022-07-06T21:19:30","modified_gmt":"2022-07-06T21:19:30","slug":"revisiting-canadian-energy-stocks-in-wake-of-aramco-attack","status":"publish","type":"post","link":"https:\/\/www.inovestor.com\/en-ca\/2019\/09\/revisiting-canadian-energy-stocks-in-wake-of-aramco-attack\/","title":{"rendered":"Revisiting Canadian energy stocks in wake of Aramco attack"},"content":{"rendered":"<p>[vc_row type=&#8221;in_container&#8221; full_screen_row_position=&#8221;middle&#8221; scene_position=&#8221;center&#8221; text_color=&#8221;dark&#8221; text_align=&#8221;left&#8221; overlay_strength=&#8221;0.3&#8243;][vc_column column_padding=&#8221;no-extra-padding&#8221; column_padding_position=&#8221;all&#8221; background_color_opacity=&#8221;1&#8243; background_hover_color_opacity=&#8221;1&#8243; column_shadow=&#8221;none&#8221; width=&#8221;1\/1&#8243; tablet_text_alignment=&#8221;default&#8221; phone_text_alignment=&#8221;default&#8221; column_border_width=&#8221;none&#8221; column_border_style=&#8221;solid&#8221;][vc_column_text]West Texas Intermediate, the North American crude oil benchmark, fluctuated between US$57 and US$62 last week after the attack on Saudi Aramco, the world\u2019s largest exporter of petroleum. The Saudi incident in and of itself will not revive the fortunes of Canada\u2019s energy sector, but it did cause some stock prices of companies in the sector to surge, however briefly.<\/p>\n<p>For the Globe and Mail this week, <a href=\"https:\/\/www.theglobeandmail.com\/investing\/investment-ideas\/number-cruncher\/article-revisiting-canadas-oil-patch-in-wake-of-aramco-attack\/\">we look for Canadian companies involved in oil and gas production, extraction and distribution, with a focus on quality and sustainability<\/a>, amid global geopolitical tensions.<\/p>\n<p class=\"c-article-body__text\">We screen the domestic energy sector for companies by using the following criteria:<\/p>\n<ul class=\"c-article-body__ul\">\n<li class=\"c-article-body__li\">Market capitalization greater than $2-billion;<\/li>\n<li class=\"c-article-body__li\">A positive change in the 12-month net operating profit after tax (NOPAT) \u2013 a measure of operating efficiency that excludes the cost and tax benefits of debt financing by simply focusing on the company\u2019s core operations net of taxes;<\/li>\n<li class=\"c-article-body__li\">A future-growth-value-to-market-value ratio (FGV\/MV) between minus 50 per cent and 50 per cent, to exclude companies with exaggerated discounts or premiums. FGV\/MV represents the proportion of the market value of the company that is made up of future growth expectations rather than the actual profit generated. The higher the percentage, the higher the baked-in premium for expected growth and the higher the risk;<\/li>\n<li class=\"c-article-body__li\">Free-cash-flow-to-capital ratio. This metric gives us an idea of how efficiently the company converts its invested capital to free cash flow, which is the amount left after all capital expenditures have been accounted for. It is an important measure because it gives us the company\u2019s financial capacity to pay dividends, reduce debt and pursue growth opportunities. We are always looking for a positive ratio and more than 5 per cent is excellent;<\/li>\n<li class=\"c-article-body__li\">Economic performance index (EPI) greater than 0.5 and growth in the 12-month EPI, which is the ratio of return on capital to cost of capital, representing the wealth-creating ability of the company. For EPI, anything above one is favourable \u2013 the higher the figure the better.<\/li>\n<\/ul>\n<div id=\"fws_5d8b90bca9cb6\" class=\"wpb_row vc_row-fluid vc_row standard_section \" data-midnight=\"dark\" data-bg-mobile-hidden=\"\">\n<div class=\"col span_12 dark left\">\n<div class=\"vc_col-sm-12 wpb_column column_container vc_column_container col no-extra-padding instance-0\" data-shadow=\"none\" data-border-animation=\"\" data-border-animation-delay=\"\" data-border-width=\"none\" data-border-style=\"solid\" data-border-color=\"\" data-bg-cover=\"\" data-padding-pos=\"all\" data-has-bg-color=\"false\" data-bg-color=\"\" data-bg-opacity=\"1\" data-hover-bg=\"\" data-hover-bg-opacity=\"1\" data-animation=\"\" data-delay=\"0\">\n<div class=\"vc_column-inner\">\n<div class=\"wpb_wrapper\">\n<div class=\"wpb_text_column wpb_content_element \">\n<div class=\"wpb_wrapper\">\n<div class=\"vc_col-sm-12 wpb_column column_container vc_column_container col no-extra-padding instance-1 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class=\"wpb_wrapper\">\n<div class=\"wpb_text_column wpb_content_element \">\n<div class=\"wpb_wrapper\">\n<div id=\"fws_5d52e679d105b\" class=\"wpb_row vc_row-fluid vc_row standard_section \" data-midnight=\"\" data-column-margin=\"default\" data-bg-mobile-hidden=\"\">\n<div class=\"col span_12 left\">\n<div class=\"vc_col-sm-12 wpb_column column_container vc_column_container col no-extra-padding instance-2 instance-4 instance-9\" data-border-animation=\"\" data-border-animation-delay=\"\" data-border-width=\"none\" data-border-style=\"solid\" data-border-color=\"\" data-bg-cover=\"\" data-padding-pos=\"all\" data-has-bg-color=\"false\" data-bg-color=\"\" data-bg-opacity=\"1\" data-hover-bg=\"\" data-hover-bg-opacity=\"1\" data-animation=\"\" data-delay=\"0\">\n<div class=\"vc_column-inner\">\n<div class=\"wpb_wrapper\">\n<div class=\"wpb_text_column wpb_content_element \">\n<div class=\"wpb_wrapper\">\n<div id=\"fws_5d41b44902b01\" class=\"wpb_row vc_row-fluid vc_row standard_section 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url=&#8221;https:\/\/account.inovestor.com\/InoAdvisor\/en-CA\/ScreenersDeepLinking?dataset=StockPointer&#038;screener=share%3A%7B%22name%22%3A%22Canadian%20Oil%20stocks%22%2C%22sortedBy%22%3A%22evamvecur%22%2C%22sortOrder%22%3A%22desc%22%2C%22criterias%22%3A%7B%22PRCcur%22%3A%7B%7D%2C%22evamvecur%22%3A%7B%22%3E%22%3A2000%7D%2C%22marketidentificationcodeextended%22%3A%7B%22in%22%3A%5B%22CND%22%5D%7D%2C%22sector%22%3A%7B%22in%22%3A%5B%221010%22%5D%7D%2C%22eva12CHY%22%3A%7B%22%3E%22%3A0%7D%2C%22PrcCH12M%22%3A%7B%7D%2C%22divTAUX%22%3A%7B%7D%2C%22nopAT12CHY%22%3A%7B%22%3E%22%3A0%7D%2C%22evaFGVpcCU%22%3A%7B%22%3E%22%3A-50%2C%22%3C%22%3A50%7D%2C%22evapi12%22%3A%7B%22%3E%22%3A0.5%7D%2C%22evapi12chy%22%3A%7B%22%3E%22%3A0%7D%2C%22fcfCAP12%22%3A%7B%22%3E%22%3A-618304%7D%7D%7D&#8221; text=&#8221;LOGIN&#8221;][\/vc_column][\/vc_row]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[vc_row type=&#8221;in_container&#8221; full_screen_row_position=&#8221;middle&#8221; scene_position=&#8221;center&#8221; text_color=&#8221;dark&#8221; text_align=&#8221;left&#8221; overlay_strength=&#8221;0.3&#8243;][vc_column column_padding=&#8221;no-extra-padding&#8221; column_padding_position=&#8221;all&#8221; background_color_opacity=&#8221;1&#8243; background_hover_color_opacity=&#8221;1&#8243; column_shadow=&#8221;none&#8221; width=&#8221;1\/1&#8243; tablet_text_alignment=&#8221;default&#8221; phone_text_alignment=&#8221;default&#8221; column_border_width=&#8221;none&#8221; column_border_style=&#8221;solid&#8221;][vc_column_text]West Texas Intermediate, the North American crude oil benchmark, fluctuated between US$57 and US$62 last week after the attack on Saudi Aramco, the world\u2019s largest exporter of petroleum. The Saudi incident in and of itself will not revive the [&hellip;]<\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[16,7],"tags":[163,170],"class_list":["post-38661","post","type-post","status-publish","format-standard","hentry","category-number-cruncher","category-screeners","tag-canada","tag-energy"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.3 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Revisiting Canadian energy stocks in wake of Aramco attack - Inovestor<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.inovestor.com\/en-ca\/2019\/09\/revisiting-canadian-energy-stocks-in-wake-of-aramco-attack\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Revisiting Canadian energy stocks in wake of Aramco attack\" \/>\n<meta property=\"og:description\" content=\"[vc_row type=&#8221;in_container&#8221; full_screen_row_position=&#8221;middle&#8221; scene_position=&#8221;center&#8221; text_color=&#8221;dark&#8221; text_align=&#8221;left&#8221; overlay_strength=&#8221;0.3&#8243;][vc_column column_padding=&#8221;no-extra-padding&#8221; column_padding_position=&#8221;all&#8221; background_color_opacity=&#8221;1&#8243; background_hover_color_opacity=&#8221;1&#8243; column_shadow=&#8221;none&#8221; width=&#8221;1\/1&#8243; tablet_text_alignment=&#8221;default&#8221; phone_text_alignment=&#8221;default&#8221; column_border_width=&#8221;none&#8221; column_border_style=&#8221;solid&#8221;][vc_column_text]West Texas Intermediate, the North American crude oil benchmark, fluctuated between US$57 and US$62 last week after the attack on Saudi Aramco, the world\u2019s largest exporter of petroleum. The Saudi incident in and of itself will not revive the [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.inovestor.com\/en-ca\/2019\/09\/revisiting-canadian-energy-stocks-in-wake-of-aramco-attack\/\" \/>\n<meta property=\"og:site_name\" content=\"Inovestor\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Inovestor\/\" \/>\n<meta property=\"article:published_time\" content=\"2019-09-25T16:16:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-07-06T21:19:30+00:00\" \/>\n<meta name=\"author\" content=\"Newswire Inovestor\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@Inovestor_\" \/>\n<meta name=\"twitter:site\" content=\"@Inovestor_\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Newswire Inovestor\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.inovestor.com\/en-ca\/2019\/09\/revisiting-canadian-energy-stocks-in-wake-of-aramco-attack\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.inovestor.com\/en-ca\/2019\/09\/revisiting-canadian-energy-stocks-in-wake-of-aramco-attack\/\"},\"author\":{\"name\":\"Newswire Inovestor\",\"@id\":\"https:\/\/www.inovestor.com\/en-ca\/#\/schema\/person\/4a05be738abb4600b8509b4f2d5a0bd7\"},\"headline\":\"Revisiting Canadian energy stocks in wake of Aramco attack\",\"datePublished\":\"2019-09-25T16:16:00+00:00\",\"dateModified\":\"2022-07-06T21:19:30+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.inovestor.com\/en-ca\/2019\/09\/revisiting-canadian-energy-stocks-in-wake-of-aramco-attack\/\"},\"wordCount\":623,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.inovestor.com\/en-ca\/#organization\"},\"keywords\":[\"Canada\",\"Energy\"],\"articleSection\":[\"Number Cruncher\",\"Screeners\"],\"inLanguage\":\"en-CA\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.inovestor.com\/en-ca\/2019\/09\/revisiting-canadian-energy-stocks-in-wake-of-aramco-attack\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.inovestor.com\/en-ca\/2019\/09\/revisiting-canadian-energy-stocks-in-wake-of-aramco-attack\/\",\"url\":\"https:\/\/www.inovestor.com\/en-ca\/2019\/09\/revisiting-canadian-energy-stocks-in-wake-of-aramco-attack\/\",\"name\":\"Revisiting Canadian energy stocks in wake of Aramco attack - 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Inovestor","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.inovestor.com\/en-ca\/2019\/09\/revisiting-canadian-energy-stocks-in-wake-of-aramco-attack\/","og_locale":"en_US","og_type":"article","og_title":"Revisiting Canadian energy stocks in wake of Aramco attack","og_description":"[vc_row type=&#8221;in_container&#8221; full_screen_row_position=&#8221;middle&#8221; scene_position=&#8221;center&#8221; text_color=&#8221;dark&#8221; text_align=&#8221;left&#8221; overlay_strength=&#8221;0.3&#8243;][vc_column column_padding=&#8221;no-extra-padding&#8221; column_padding_position=&#8221;all&#8221; background_color_opacity=&#8221;1&#8243; background_hover_color_opacity=&#8221;1&#8243; column_shadow=&#8221;none&#8221; width=&#8221;1\/1&#8243; tablet_text_alignment=&#8221;default&#8221; phone_text_alignment=&#8221;default&#8221; column_border_width=&#8221;none&#8221; column_border_style=&#8221;solid&#8221;][vc_column_text]West Texas Intermediate, the North American crude oil benchmark, fluctuated between US$57 and US$62 last week after the attack on Saudi Aramco, the world\u2019s largest exporter of petroleum. The Saudi incident in and of itself will not revive the [&hellip;]","og_url":"https:\/\/www.inovestor.com\/en-ca\/2019\/09\/revisiting-canadian-energy-stocks-in-wake-of-aramco-attack\/","og_site_name":"Inovestor","article_publisher":"https:\/\/www.facebook.com\/Inovestor\/","article_published_time":"2019-09-25T16:16:00+00:00","article_modified_time":"2022-07-06T21:19:30+00:00","author":"Newswire Inovestor","twitter_card":"summary_large_image","twitter_creator":"@Inovestor_","twitter_site":"@Inovestor_","twitter_misc":{"Written by":"Newswire Inovestor","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.inovestor.com\/en-ca\/2019\/09\/revisiting-canadian-energy-stocks-in-wake-of-aramco-attack\/#article","isPartOf":{"@id":"https:\/\/www.inovestor.com\/en-ca\/2019\/09\/revisiting-canadian-energy-stocks-in-wake-of-aramco-attack\/"},"author":{"name":"Newswire Inovestor","@id":"https:\/\/www.inovestor.com\/en-ca\/#\/schema\/person\/4a05be738abb4600b8509b4f2d5a0bd7"},"headline":"Revisiting Canadian energy stocks in wake of Aramco attack","datePublished":"2019-09-25T16:16:00+00:00","dateModified":"2022-07-06T21:19:30+00:00","mainEntityOfPage":{"@id":"https:\/\/www.inovestor.com\/en-ca\/2019\/09\/revisiting-canadian-energy-stocks-in-wake-of-aramco-attack\/"},"wordCount":623,"commentCount":0,"publisher":{"@id":"https:\/\/www.inovestor.com\/en-ca\/#organization"},"keywords":["Canada","Energy"],"articleSection":["Number Cruncher","Screeners"],"inLanguage":"en-CA","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.inovestor.com\/en-ca\/2019\/09\/revisiting-canadian-energy-stocks-in-wake-of-aramco-attack\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.inovestor.com\/en-ca\/2019\/09\/revisiting-canadian-energy-stocks-in-wake-of-aramco-attack\/","url":"https:\/\/www.inovestor.com\/en-ca\/2019\/09\/revisiting-canadian-energy-stocks-in-wake-of-aramco-attack\/","name":"Revisiting Canadian energy stocks in wake of Aramco attack - 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