As we enter 2025, Canadian energy stocks are in the spotlight for investors seeking growth, dividends, and exposure to a sector critical to the global economy. The energy industry remains a cornerstone of the TSX, offering both challenges and opportunities. From oil sands to pipelines and renewable energy projects, this year looks poised to deliver promising outcomes for energy stocks that adapt to evolving energy demands.
Producers to watch
Canadian Natural Resources (TSX:CNQ) has already set an ambitious tone for the year. The energy stock announced plans to boost its production by up to 12%, targeting between 1.510 and 1.555 million barrels of oil equivalent per day. This comes alongside a capital budget increase to $6.2 billion, reflecting confidence in oil’s enduring role in the global energy mix. CNQ’s growth strategy positions it as a top contender for long-term investors looking for stable dividends and production increases.
Suncor Energy (TSX:SU) is another major player making waves in the energy market. Under the leadership of CEO Rich Kruger, the energy stock is focused on operational efficiency, which has paid off in the form of higher production forecasts. Suncor expects to increase its daily output to between 810,000 and 840,000 barrels in 2025, a notable rise from the 770,000 to 810,000 barrels expected in 2024. This steady growth in production, combined with Suncor’s dividend history, makes it an appealing choice for income-focused investors.
Pipelines to watch
Pipeline operators are also showcasing strength, with Enbridge (TSX:ENB) leading the charge. Enbridge has forecast adjusted earnings for 2025 in the range of $19.4 billion to $20 billion. This growth is underpinned by its recent acquisitions in the gas distribution sector, further solidifying its role in the energy infrastructure landscape. The energy stock’s reliable dividend payouts make it a favourite among Canadian investors seeking stable income from their portfolios.
Similarly, TC Energy (TSX:TRP) projected a strong year ahead, with expected core profits between $10.7 billion and $10.9 billion. The energy stock is capitalizing on increased demand for natural gas and electricity. Its robust pipeline infrastructure, coupled with the global push toward LNG exports, positions TC Energy as a key player in the ongoing energy transition. This dual focus on traditional and renewable energy sources makes TRP a versatile investment choice.
Key factors
The energy sector has proven its resilience, with strong past performance bolstering investor confidence. Over the last year, Canadian energy stocks have delivered an impressive average gain of 18%. Companies like Canadian Natural Resources and Suncor have been instrumental in driving these gains, showcasing their ability to adapt to market challenges and leverage opportunities.
Looking ahead, the future of Canadian energy stocks seems bright, driven by global trends that favour the sector. Oil consumption has rebounded to all-time highs. Plus natural gas demand is surging thanks to LNG growth and coal-to-gas switching initiatives. Canadian energy stocks are particularly well-suited to capitalize on these trends, given their vast reserves, advanced technology, and strategic infrastructure.
However, investors should keep an eye on energy stocks given the ongoing talk about President Trump’s tariffs. These policies could spark ripple effects across the energy sector. Tariffs on imported steel or aluminum, for instance, might drive up costs for pipeline construction and maintenance, thereby squeezing profits for energy companies. At the same time, retaliatory measures from other countries could impact oil and gas exports, creating a volatile pricing environment. As energy companies navigate these potential shifts, it’s a key moment for investors to assess how well their favourites in the sector are positioned to weather, or even benefit from, these changes.
Bottom line
In conclusion, 2025 is shaping up to be an exciting year for energy stocks on the TSX. With major players like Canadian Natural Resources, Suncor, Enbridge, and TC Energy driving growth and innovation, there’s no shortage of opportunities for investors. Whether you’re focused on income, growth, or a combination of both, the Canadian energy sector offers a wealth of options. By staying attuned to industry trends and company performance, you can navigate this dynamic sector with confidence. And make the most of your investments.
