After a lacklustre 2024, Canadian energy stocks are beginning to show signs of life again — and long-term investors are starting to pay attention. As geopolitical tensions escalate in the Middle East and key commodity prices edge higher, energy markets are entering a new phase of volatility and opportunity. For Canadian producers and infrastructure players, the shift could be meaningful.
With supply constraints, rising demand forecasts, and political tailwinds, Canada’s energy sector could see a strong comeback. For investors with $1,000 to deploy, this may be the ideal moment to lock in quality names at attractive valuations. In this article, I’ll highlight two Canadian energy stocks that look attractive, no-brainer buys for 2025 and beyond.
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ARC Resources stock
ARC Resources (TSX:ARX) is the first no-brainer buy in my books right now. This Calgary-headquartered company is one of Canada’s top players in the Montney region, developing and producing natural gas, condensate, natural gas liquids, and crude oil.
After surging by around 24% over the last six months, ARX stock currently trades at $28.33 per share with a market cap of $16.7 billion. It also pays a quarterly dividend that currently works out to an annualized yield of 2.7%, which could act as a nice bonus for long-term investors.
In 2024, ARC’s total revenue came in at $5.1 billion, slightly down from 2023 due to weaker commodity prices. This led to a decline in its annual net profit. Nevertheless, its fourth-quarter operational performance was a bright spot. For the quarter, the company posted record production and strong initial volumes from Attachie Phase I, which lifted its quarterly profit to $370 million. These production gains and better natural gas pricing also boosted its funds from operations and free funds flow in the last quarter of the year.
In 2025, ARC plans to return nearly all free cash to shareholders, all while scaling up production from Attachie and expanding its LNG exposure through international pricing deals. That combo of discipline, scale, and smart growth makes ARC a compelling energy stock for the long term.
Enbridge stock
While ARC offers upside through production growth and disciplined cash returns, the second no-brainer energy stock on my list, Enbridge (TSX:ENB), brings stability and scale to the table. This Canadian energy transportation giant operates through a massive network of pipelines and utility services across North America.
After rallying by 31% over the last year, ENB stock currently trades at $63.38 per share with a market cap of $138.1 billion. Investors also get rewarded along the way with its solid 6% annualized dividend yield, paid out quarterly.
Last year, Enbridge’s adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) rose 13% year over year to $18.6 billion. This growth was mainly driven by contributions from its newly acquired U.S. gas utilities and stronger performance across its pipelines and renewables segments. With this, the company’s core financial metrics, like distributable cash flow and EBITDA, hit all-time highs in 2024.
Moreover, Enbridge’s $26 billion secured growth backlog and focus on self-funded, low-risk expansion projects make it a great energy stock to buy now and hold forever.
