The Ultimate Energy Stock to Buy With $1,000 Right Now

A prolific energy stock is a strong buy right now if you want a substantial windfall from an investment of as little as $1,000.

| More on:
Oil industry worker works in oilfield

Source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Energy is one of the heavyweight sectors on the Toronto Stock Exchange, and many constituents are highly profitable. Oil and gas stocks dominated the TSX30 List in 2023 and 2024, the flagship program for Canada’s top growth stocks.

However, if you’re investing in the sector, Valeura Energy (TSX:VLE) is the ultimate energy stock to buy right now. At only $6.50 per share, current investors enjoy a 128.9% year-to-date gain. A $1,000 position on December 29, 2023, is worth $2,288.33 today. This small-cap stock is a winner, given its 1,344.4% overall return in three years. I won’t be surprised if VLE makes it to the 2025 TSX30 List.

Created with Highcharts 11.4.3Valeura Energy PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

Business overview

Valeura Energy is an oil and natural gas producer with headquarters in Singapore. Its material-operated oil-producing assets are in the offshore Gulf of Thailand. The $695.5 million Canadian company also operates in the Thrace basin, onshore in north-west Turkey.

According to management, Valeura started as a small Turkish gas explorer and producer and is now Thailand’s second-largest oil producer. Its successful exploration and appraisal activities assure longer production life. The company also commits to pursuing organic and inorganic growth to enhance shareholder value.

Milestone and business decision

In Q3 2024, net loss reached US$3.9 million compared to the US$11.3 million in net earnings in Q3 2023. The loss was due to lower oil sales and the payment of US$30 million in petroleum taxes following the consolidation of the Thai assets into a single subsidiary. It was a milestone and necessary business decision.

Dr. Sean Guest, Valeura’s President and CEO, said, “All steps are now completed for us to pool our forward costs and apply our substantial tax loss carry-forwards to the combined income generated from the Nong Yao, Manora, and Wassana fields from November 1, 2024 on. We have achieved record production rates in both September and October.”

Besides immediately increasing the company’s cash flow generation, Dr. Guest added that it would further enhance the ability to extend the fields’ producing life. Management expects strong Q4 2024 financial performance because of higher production and unusually high crude oil in inventory at the end of Q3.

Valeura had no active operations in Turkey during Q3 2024 as it searches for a farm-in partner to help move to the next phase of work. The company has between a 63% to 100% interest in the deep gas play. It will apply for an extension of the exploration license expiring on June 27, 2025.

Strong buy

Valeura Energy has zero debt after fully repaying all outstanding loan obligations in Q3 2023. As of September 30, 2024, the available cash is US$156 million. Dr. Guest further said the company is well-positioned to continue pursuing value through portfolio growth and accretive acquisitions.

More importantly, the Gulf of Thailand is a competitive advantage. Valeura Energy can maintain and considerably improve the reserve life index because the continued development of existing fields continues to replace production historically. This energy stock is a “strong buy” for its strong balance sheet and expected cash flows in the near term.  

Should you invest $1,000 in Lightspeed right now?

Before you buy stock in Lightspeed, consider this:

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Lightspeed wasn’t one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $20,697.16!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 29 percentage points since 2013*.

See the Top Stocks * Returns as of 3/20/25

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Confidently Navigate Market Volatility: Claim Your Free Report!

Feeling uneasy about the ups and downs of the stock market lately? You’re not alone. At The Motley Fool Canada, we get it — and we’re here to help. We’ve crafted an essential guide designed to help you through these uncertain times: "5-Step Checklist: How to Prepare Your Portfolio for Volatility."

Don't miss out on this opportunity for peace of mind. Just click below to learn how to receive your complimentary report today!

Get Our Free Report Today

More on Energy Stocks

golden sunset in crude oil refinery with pipeline system
Energy Stocks

Is Enbridge Stock (TSX:ENB) a Buy for its 5.9% Dividend Yield?

This solid dividend payer has the potential to help investors generate reliable passive income for decades.

Read more »

nugget gold
Dividend Stocks

Recession Stocks Are Back: Consider Buying the Dip This April

Recession stocks are back, and this one could be a solid winner.

Read more »

Person holds banknotes of Canadian dollars
Energy Stocks

Best Stock to Buy Right Now: Suncor vs Cenovus?

Suncor stock's 4.2% dividend yield vs Cenovus Energy's growth potential: Tariff-proof safety or growth gamble?

Read more »

Blocks conceptualizing Canada's Tax Free Savings Account
Dividend Stocks

How to Earn $500/Month in Tax-Free Income With Your TFSA

Canadians can earn $500 or a desired tax-free income every month by saving and investing through the TFSA.

Read more »

how to save money
Energy Stocks

1 Canadian Stock Ready to Surge in 2025 and Beyond

This Canadian stock has seen significant growth, but more could come for 2025 and beyond.

Read more »

oil and natural gas
Energy Stocks

Here’s How Many Shares of Enbridge You Should Own to Get $2,000 in Yearly Dividends

Solid dividend stocks like Enbridge could help you generate reliable passive income for decades.

Read more »

Pumpjack in Alberta Canada
Energy Stocks

3 Canadian Oil and Gas Stocks to Watch for in 2025

Oil companies like Suncor Energy (TSX:SU) are doing well this year.

Read more »

Aerial view of a wind farm
Energy Stocks

The Best Renewable Energy Stocks to Buy Before They Take Off

Here are two of the best Canadian renewable energy stocks you can buy today and hold for the long term…

Read more »