Top Energy Stocks to Invest in for 2025

Energy stocks are a solid choice for investors, but these could be the best option in 2025.

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Investing in Canada’s energy sector can indeed be a strategic move for those investors who are looking to diversify their portfolios. Plus, investors could potentially capitalize on the growth and income opportunities within this vital segment of the Canadian economy. The TSX is home to a significant number of energy companies. As we look ahead to 2025, let’s explore some of the top picks within the Canadian energy sector that may warrant consideration for investment.

A worker overlooks an oil refinery plant.

Source: Getty Images

CNRL

Canadian Natural Resources (TSX: CNQ), widely known as CNRL, stands as one of Canada’s largest independent producers. In its financial report for the fourth quarter of 2024, CNRL reported net earnings of $1.2 billion. This figure represents a decrease compared to the $1.5 billion in net earnings reported last year. Yet it’s important to note that the company’s production levels remained robust, averaging an impressive 1.3 million barrels of oil equivalent per day.

CNRL has a well-diversified asset base, which includes a mix of oil sands, conventional oil and gas, and natural gas liquids. Coupled with its focus on efficient operations and cost management, this positions it favourably for potential future growth and resilience within the energy market.

Enbridge

Enbridge (TSX: ENB) is a leading North American energy infrastructure company with extensive operations in the transportation, midstream, and power generation sectors. In its latest earnings report for the fourth quarter of 2024, Enbridge posted adjusted earnings of $1.5 billion, showing a slight increase from the $1.4 billion Canadian reported in the fourth quarter of 2023.

The energy stock holds a vast and strategically important network of pipelines for transporting crude oil and natural gas. Along with its growing commitment to investing in renewable energy projects, this makes it a potentially stable choice for investors, especially those who are seeking a combination of both reliable income through dividends and long-term growth prospects within the energy infrastructure space.

TRP

TC Energy (TSX: TRP) is another key player in the North American energy infrastructure sector. Primarily operating extensive networks of natural gas and liquids pipelines across the continent. For the fourth quarter of 2024, TC Energy reported comparable earnings of $1.1 billion. This was consistent with the results achieved in the same period of the previous year.

The energy stock’s strategic focus is on expanding its existing pipeline network to meet growing energy demand as well as its increasing investments in renewable energy and other low-carbon energy initiatives. All this indicates a forward-looking growth strategy that may appeal to long-term investors in the energy sector.

SU

Suncor Energy (TSX: SU) is a major integrated energy company in Canada, with operations spanning the entire energy value chain. These include oil sands development and production, petroleum refining, and retail marketing of petroleum products. In its financial report for the fourth quarter of 2024, Suncor reported net earnings of $1.8 billion. This represents a significant increase from the $1.2 billion reported in the same quarter of 2023.

The energy stock’s integrated business model contributes to its strong financial performance and makes it a noteworthy option for investors in the Canadian energy landscape. This provides a natural hedge against fluctuations in crude oil prices, along with its ongoing emphasis on enhancing operational efficiency and reducing costs.

Bottom line

Investing in the energy sector requires investors to carefully consider prevailing market trends, global energy demand forecasts, and the specific fundamentals of each company. The energy stocks mentioned above have all demonstrated a degree of resilience and adaptability in navigating the often cyclical nature of the energy industry, making them noteworthy options for investors to consider in 2025.

However, as always, it is strongly advisable for investors to conduct their own thorough and independent research. Or consult with a qualified financial advisor before making any investment decisions. Doing so will ensure that their choices align with their individual financial goals, risk tolerance, and overall investment strategy.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Canadian Natural Resources and Enbridge. The Motley Fool has a disclosure policy.

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