What is an Energy Stock?
Energy stocks encompass companies engaged in the production, processing, and sale of energy products, including fossil fuels (natural gas, crude oil, refined petroleum products) and renewable energy sources (wind, hydro, solar). This category also includes companies that manufacture energy machinery and equipment and those providing support services like logistics and staffing. Canada is renowned for its abundance of natural resources, with the oil sector being a key driver of the Canadian economy. Consequently, investors have numerous options when considering energy stocks. As a commodity, energy prices are elastic, heavily influenced by supply and demand, which can be cyclical. This results in energy companies having a higher beta, indicating greater volatility compared to the overall market. Additional risks include political and regulatory challenges for mining sites and geological and environmental risks associated with operations.
What is the Best Energy Stock in Canada?
- ENB: Enbridge Inc.
- CNQ: Canadian Natural Resources Limited
- SU: Suncor Energy Inc.
- TRP: TC Energy Corporation
- IMO: Imperial Oil Limited
- CVE: Cenovus Energy Inc.
- PPL: Pembina Pipeline Corporation
- TOU: Tourmaline Oil Corp.
- OVV: Ovintiv Inc.
- ARX: ARC Resources Ltd.
| Ticker | Name | Market Cap | Beta | P/E | Dividend Yield |
|---|---|---|---|---|---|
| ARX | ARC Resources Ltd. | $14,040,000,000 | 1.32 | 11.80 | 2.87% |
| CNQ | Canadian Natural Resources Limited | $104,450,000,000 | 1.97 | 14.47 | 4.09% |
| CVE | Cenovus Energy Inc. | $50,995,000,000 | 2.73 | 11.30 | 2.69% |
| ENB | Enbridge Inc. | $106,071,000,000 | 0.90 | 18.83 | 7.36% |
| IMO | Imperial Oil Limited | $52,598,000,000 | 1.83 | 11.43 | 2.44% |
| OVV | Ovintiv Inc. | $17,012,000,000 | 2.65 | 6.44 | 2.58% |
| PPL | Pembina Pipeline Corporation | $30,680,000,000 | 1.49 | 17.02 | 5.21% |
| SU | Suncor Energy Inc. | $68,691,000,000 | 1.51 | 8.85 | 4.10% |
| TRP | TC Energy Corporation | $58,286,000,000 | 0.77 | 21.44 | 6.95% |
| TOU | Tourmaline Oil Corp. | $21,229,000,000 | 1.37 | 12.10 | 2.12% |
10. ARC Resources Ltd.
ARC Resources Ltd. (ARX) engages in the acquiring and developing crude oil, natural gas, condensate, and natural gas liquids in Canada. It primarily holds interests in the Montney basin located in Alberta and northeast British Columbia. ARC Resources Ltd. was founded in 1996 and is based in Calgary, Canada.
9. Ovintiv Inc.
Ovintiv Inc. (OVV) explores, develops, produces, and markets natural gas, oil, and natural gas liquids in the United States and Canada. The company operates through USA Operations, Canadian Operations, and Market Optimization segments. Its principal assets include Permian in west Texas and Anadarko in west-central Oklahoma; and Montney in northeast British Columbia and northwest Alberta. In addition, the company’s upstream assets comprise Bakken in northwest North Dakota, and Uinta in central Utah; and Horn River in northeast British Columbia. The company was formerly known as Encana Corporation and changed its name to Ovintiv Inc. in January 2020. Ovintiv Inc. was incorporated in 2020 and is based in Denver, Colorado.
8. Tourmaline Oil Corp.
Tourmaline Oil Corp. (TOU) explores for and develops oil and natural gas properties in the Western Canadian Sedimentary Basin. The company holds interests in properties located in the Alberta Deep Basin, Northeast British Columbia Montney, and the Peace River High Triassic oil complex. Tourmaline Oil Corp. was incorporated in 2008 and is headquartered in Calgary, Canada.
7. Pembina Pipeline Corporation
Pembina Pipeline Corporation (PPL) provides energy transportation and midstream services. It operates through three segments: Pipelines, Facilities, and Marketing & New Ventures. The Pipelines segment operates conventional, oil sands and heavy oil, and transmission assets with a transportation capacity of 2.9 million barrels of oil equivalent per day, a ground storage capacity of 10 million barrels, and a rail capacity of approximately 105 thousand barrels of oil equivalent per day serving markets and basins across North America. The Facilities segment offers an infrastructure that provides customers with natural gas, condensate, and natural gas liquids (NGLs), including ethane, propane, butane, and condensate; and includes 354 thousand barrels per day of NGL fractionation capacity, 21 million barrels of cavern storage capacity, and associated pipeline, and rail facilities and a liquefied propane export facility. The Marketing & New Ventures segment buys and sells hydrocarbon liquids and natural gas originating in the Western Canadian sedimentary basin and other basins. Pembina Pipeline Corporation was incorporated in 1954 and is headquartered in Calgary, Canada.
6. Cenovus Energy Inc.
Cenovus Energy Inc. (CVE) develops, produces, refines, transports, and markets crude oil, natural gas, and refined petroleum products in Canada and internationally. The company operates through Oil Sands, Conventional, Offshore, Canadian Refining, and U.S. Refining segments. The Oil Sands segment develops and produces bitumen and heavy oil in northern Alberta and Saskatchewan. This segment’s assets include Foster Creek, Christina Lake, and Sunrise projects, as well as Lloydminster thermal and conventional heavy oil assets. The Conventional segment holds natural gas liquids and natural gas assets primarily located in Elmworth-Wapiti, Kaybob-Edson, Clearwater, and Rainbow Lake operating in Alberta and British Columbia, as well as interests in various natural gas processing facilities. The offshore segment engages in offshore operation, exploration, and development activities in China and the East Coast of Canada. The Canadian Refining segment owns and operates Lloydminster upgrading and asphalt refining complex, which converts heavy oil and bitumen into synthetic crude oil, diesel, asphalt, and other ancillary products, as well as Bruderheim crude-by-rail terminal and ethanol plants. The U.S. Refining segment refines crude oil to produce gasoline, diesel, jet fuel, asphalt, and other products. Cenovus Energy Inc. is headquartered in Calgary, Canada.
5. Imperial Oil Limited
Imperial Oil Limited (IMO) engages in the exploration, production, and sale of crude oil and natural gas in Canada. The company operates through three segments: Upstream, Downstream and Chemical segments. The Upstream segment explores and produces crude oil, natural gas, synthetic crude oil, and bitumen. The Downstream segment transports and refines crude oil, blends refined products and distributes and markets refined products. It transports crude oil production and third-party crude oil to refineries by contracted pipelines, common carrier pipelines, and rail; owns and operates refineries; maintains a distribution system to move petroleum products to market by pipeline, tanker, rail, and road transport; owns and operates fuel terminals, natural gas liquids, and products pipelines in Alberta, Manitoba, and Ontario; markets petroleum products under the Esso and Mobil brand names; and sells petroleum products, including fuel, asphalt, and lubricants to industrial and transportation customers, independent marketers, resellers, and other refiners, as well as the agriculture, residential heating, and commercial markets through branded fuel and lubricant resellers. The Chemical segment manufactures and markets benzene, aromatic and aliphatic solvents, plasticizer intermediates, and polyethylene resin; and markets refinery-grade propylene. The company was incorporated in 1880 and is headquartered in Calgary, Canada. Imperial Oil Limited is a subsidiary of Exxon Mobil Corporation.
4. TC Energy Corporation
TC Energy Corporation (TRP) operates as an energy infrastructure company in North America. It operates through five segments: Canadian Natural Gas Pipelines; U.S. Natural Gas Pipelines; Mexico Natural Gas Pipelines; Liquids Pipelines; and Power and Energy Solutions. The company builds and operates a network of 93,600 kilometers of natural gas pipelines, which transports natural gas from supply basins to local distribution companies, power generation plants, industrial facilities, interconnecting pipelines, LNG export terminals, and other businesses. It also has regulated natural gas storage facilities with a total working gas capacity of 532 billion cubic feet. In addition, it has approximately 4,900 kilometers of liquids pipeline system that connects Alberta crude oil pipeline to refining markets in Illinois, Oklahoma, Texas, and the United States Gulf Coast. Further, the company owns or has interests in power generation facilities with approximately 4,600 megawatts; and owns and operates approximately 118 billion cubic feet of non-regulated natural gas storage facilities in in Alberta, Ontario, Québec, and New Brunswick. The company was formerly known as TransCanada Corporation and changed its name to TC Energy Corporation in May 2019. TC Energy Corporation was founded in 1951 and is headquartered in Calgary, Canada.
3. Suncor Energy Inc.
Suncor Energy Inc. (SU) operates as an integrated energy company in Canada, the United States, and internationally. It operates through Oil Sands; Exploration and Production; and Refining and Marketing segments. The Oil Sands segment explores, develops, and produces bitumen, synthetic crude oil, and related products. This segment also engages in oil sands mining. The Exploration and Production segment is involved in offshore operations in the East Coast of Canada; and marketing and risk management of crude oil and natural gas. The Refining and Marketing segment engages in the refining of crude oil products; and distribution, marketing, transportation, and risk management of refined and petrochemical products, and other purchased products through the retail and wholesale networks. This segment is also involved in the trading of crude oil, refined products, natural gas, and power. The company was formerly known as Suncor Inc. and changed its name to Suncor Energy Inc. in April 1997. Suncor Energy Inc. was founded in 1917 and is headquartered in Calgary, Canada. Suncor Energy Inc.
2. Canadian Natural Resources Limited
Canadian Natural Resources Limited (CNQ) acquires, explores for, develops, produces, markets, and sells crude oil, natural gas, and natural gas liquids (NGLs). The company offers light and medium crude oil, primary heavy crude oil, Pelican Lake heavy crude oil, bitumen (thermal oil), and synthetic crude oil (SCO). The company’s midstream assets include two pipeline systems; and a 50% working interest in an 84-megawatt cogeneration plant at Primrose. It operates primarily in Western Canada; the United Kingdom portion of the North Sea; and Offshore Africa. The company was formerly known as AEX Minerals Corporation and changed its name to Canadian Natural Resources Limited in December 1975. Canadian Natural Resources Limited was incorporated in 1973 and is headquartered in Calgary, Canada.
1. Enbridge Inc.
Enbridge Inc. (ENB) operates as an energy infrastructure company. The company operates through five segments: Liquids Pipelines, Gas Transmission and Midstream, Gas Distribution and Storage, Renewable Power Generation, and Energy Services. The Liquids Pipelines segment operates pipelines and related terminals to transport various grades of crude oil and other liquid hydrocarbons in Canada and the United States. The Gas Transmission and Midstream segment invests in natural gas pipelines and gathering and processing facilities in Canada and the United States. The Gas Distribution and Storage segment is involved in natural gas utility operations serving residential, commercial, and industrial customers in Ontario and natural gas distribution activities in Quebec. The Renewable Power Generation segment operates power-generating assets in North America, such as wind, solar, geothermal, waste heat recovery, and transmission assets. The Energy Services segment provides physical commodity marketing and logistical services to refiners, producers, and other customers in Canada and the United States. The company was formerly known as IPL Energy Inc. and changed its name to Enbridge Inc. in October 1998. Enbridge Inc. was founded in 1949 and is headquartered in Calgary, Canada.
