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Popular propane stocks to buy in Canada

Discover how to buy propane stocks as well as considerations when investing in the propane industry in Canada. Plus, three popular propane stocks to look into.

When the market is in turmoil, many investors turn to commodities. One lesser-known commodity is propane, sometimes called liquid petroleum gas (LPG). Here’s what you need to know about investing in propane stocks, why the price of LPG and propane can suddenly rise and whether it’s better to buy oil, gas or propane.

How to invest in propane stocks

  1. Choose a stock trading platform. Look at fees, account requirement and which exchanges and investment types are supported.
  2. Open your account. You’ll likely need ID, payment information and your Social Insurance Number (SIN).
  3. Confirm your payment details. Payment methods may vary between platforms but could include bank transfer, debit or credit.
  4. Search for stocks and ETFs. Look up stocks or ETFs by name or ticker symbol (i.e. SPB or SPH).
  5. Research the stocks or ETFs you want to buy. Most platforms provide information on past performance, company financials and other metrics to help you between investments.
  6. Buy. Track how your stock or ETF performs with an eye on how companies perform in the long run. If the price rises, you may want to sell to earn a profit on your investment.

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  • $1,200 cash reward or $1,200 Apple gift card
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Invest in propane stocks

Investing in propane stocks means you’ll buy shares in companies that produce and sell propane and LPG.

Pros
  • Avoid fund management fees when you own individual stocks directly
  • Control your investment. Buy and sell stocks when you want.
  • Choose stocks according to your own investment goals and personal values
Cons
  • Individual stock investments provide less exposure to the market than funds
  • Individual stock investments provide less protection from market fluctuations than funds

Buy on Interactive Brokers


Buy propane ETFs

Exchange traded funds (ETFs) can be a fantastic way to diversify your investment by spreading it across many different companies. As of the time of writing, there aren’t any ETFs that focus solely on propane stocks. You’ll need to look at energy-focused ETFs that invest in a range of fuels including oil, petroleum, propane and renewable energy.

Pros
  • Get exposure to a wide range of energy stocks
  • Lower fees than mutual funds
  • No need to research and pick individual propane stocks
Cons
  • Hard to invest solely in propane as most energy companies deal in a range of carbon fuels
  • Less control over your investment than individual stocks investments

Buy on Interactive Brokers


Buy physical propane

If you need propane or LPG to heat your home, then it may be possible to stock up on propane in case prices continue to rise.

Pros
  • You may save money if propane prices rise
  • Predictable energy costs. Avoid being surprised by unexpected jumps in propane prices.
Cons
  • Limited by the amount of propane you can physically store
  • If prices fall, you’ve overpaid for propane

3 propane stocks to consider

Superior Plus Corp. logo

Superior Plus Corp. (SPB.TSX)

Superior Plus Corp. is an energy distribution business that operates through 2 segments: US Propane Distribution and Canadian Propane Distribution.

The company distributes and sells propane, heating oil, other liquid fuels as well as propane-consuming equipment. Additionally, it rents, installs, maintains and repairs propane and heating oil equipment.

  • Market cap: C$2.277 billion
  • YTD performance: -12.69%
  • 1 Year performance: -24.43%
  • 5 Year performance: 108%
  • P/E Ratio: 10.96
  • Headquarters: Canada
Buy on Interactive Brokers
UGI Corporation logo

UGI Corporation (UGI.NYSE)

UGI Corporation distributes, stores, transports and markets energy products and related services in the United States and internationally. The company operates through 4 segments: AmeriGas Propane, UGI International, Midstream & Marketing and UGI Utilities.

UGI distributes and sells propane and liquefied petroleum gases (LPG) to residential, commercial and industrial customers. It also operates power-generating stations and provides logistics, storage and other services to third-party LPG distributors.

  • Market cap: C$7.198 billion
  • YTD performance: -25.27%
  • 1 Year performance: -21.51%
  • 5 Year performance: 103%
  • P/E Ratio: 6.81
  • Headquarters: United States
Buy on Interactive Brokers
Energy Transfer LP logo

Energy Transfer LP (ET.NYSE)

Headquartered in Texas, Energy Transfer LP owns and operates natural gas transportation pipelines, natural gas storage facilities and processing plants. It also sells natural gas to industrial end-users, electric utilities companies, independent power plants and local distribution companies.

Additionally, Energy Transfer manages coal and natural resources properties, sells standing timber and leases coal-related infrastructure facilities.

  • Market cap: C$34.112 billion
  • YTD performance: 34.45%
  • 1 Year performance: 28.51%
  • 5 Year performance: 206%
  • P/E Ratio: 5.86
  • Headquarters: United States
Buy on Interactive Brokers

Compare platforms to buy propane stocks

1 - 6 of 6
Name Product Finder Rating Available Asset Types Stock Trading Fee Account Fee Signup Offer Table description
Interactive Brokers
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Moomoo Financial Canada
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3.9 / 5
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CIBC Investor's Edge
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RBC Direct Investing
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Is propane cleaner than petroleum or diesel?

If you’re looking to invest in a clean source of fuel, then consider the advantages that propane has over gas, petroleum and diesel:

  • Propane is cleaner than gas, petrol or diesel as it produces less carbon dioxide when burned.
  • Propane isn’t harmful when inhaled and doesn’t emit chemical waste like sulphur dioxide, nitrogen oxides or methane.
  • Propane is not harmful to the soil, groundwater, freshwater or sea water as it evaporates into a nontoxic vapour.

It’s hard to argue that propane is a truly “green” fuel, because it’s produced as a byproduct of processing gas and petroleum. Renewable energy sources like solar power, wind power and hydropower are considerably more environmentally friendly.

What is LPG?

LPG (liquid petroleum gas) is a byproduct of processing natural gas and refining oil. Propane is sometimes called LPG. However, LPG is actually an umbrella term for several gases including propane, butane, propylene, butadiene, butylene and isobutylene.

Propane, the main type of LPG, is normally compressed and stored as a liquid. It’s nontoxic, virtually odourless and colourless, but an odour can be added to make it easier to detect. Propane is similar to butane but can boil and very low temperatures and is therefore used more often outdoors, whereas butane is often used indoors.

Propane is commonly used to heat homes in rural areas where it’s not possible to connect to gas lines. It’s also used in industrial processing and as fuel for machines and commercial vehicles. When used as fuel for transportation, it’s sometimes called propane autogas.

What causes the price of LPG and propane to rise and fall?

Many factors affect the cost of energy. But one of the main factors contributing to propane price increases is the rising cost of oil and gas. Because propane is a byproduct of oil and gas manufacturing, when oil and gas prices increase, so does the cost of propane.

Generally, higher supply drives down the price of resources. So, LPG and propane prices could go down if new resources are discovered, energy technology advances, laws benefitting oil and gas producers are passed or political tensions ease between countries that import and export energy resources.

What are LPG, propane and butane used for?

We’ve all occasionally heard about petroleum and oil prices rising, but propane isn’t usually in the news. It’s actually the 3rd most common transportation fuel in the world after gas and diesel. It also has many other uses including:

  • Making plastic
  • Running farm machinery including irrigation engines
  • Powering forklift trucks
  • Fueling fleet vehicles and buses (in this context, it’s called autogas)
  • Cutting metal and producing other materials
  • Heating homes and caravans
  • Powering electrical appliances
  • Heating water
  • Powering gas fireplaces and patio heaters

Bottom line

When the stock market is volatile, investors tend to see commodities like propane stocks as a safe investment. But the energy sector can be volatile, which makes it difficult to predict how propane stock prices will change.

Carefully research any investment before you buy in, and compare brokers to find one that offers the type of investments you want with fees and account requirements that work for you.

Frequently asked questions about propane stocks

Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for all investors. Trading forex on leverage comes with a higher risk of losing money rapidly. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades.

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Written by

Stacie Hurst

Stacie Hurst is an editor at Finder, specializing in a wide range of topics including stock trading, money transfers, loans, banking products, online shopping and streaming. She has a Bachelor of Arts in Psychology and Writing, and she completed one year of law school in the United States before deciding to pursue a career in the publishing industry. When not working, Stacie can usually be found watching K-dramas or playing games with her friends and family. See full profile

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