3 Top Energy Stocks to Invest in for 2025 as Global Supply Chains Shift

These energy stocks offer some strong potential for growth, even as global supply chains shift.

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The world of energy is always changing and investors in Canada are watching closely. Yet while there is potential in some companies, not all hold the growth opportunities as others. That’s why today we’ll take a look at Obsidian Energy (TSX: OBE), Cardinal Energy (TSX: CJ), and Ensign Energy Services (TSX: ESI).

Oil industry worker works in oilfield

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Obsidian

Obsidian Energy is a major hub for the Canadian oil and gas industry. Its business primarily focuses on the exploration, development, and production of oil and natural gas. In 2024, this energy stock reported that it made $756.2 million in revenue, a significant 16% increase compared to its revenue in the previous year. However, it also experienced a net loss amounting to $2.67 per share.

Obsidian’s current production levels average around 31,000 barrels of oil equivalent per day, a key metric for evaluating its operational output. Factors like global oil prices and the energy stock’s cost management will be closely watched during its upcoming earnings report. Obsidian has been working to optimize its production and reduce its debt. The upcoming earnings call will provide more details on its progress and future plans. The energy stock’s strategy in a fluctuating energy market is crucial for its long-term success. Particulary, Obsidian’s land holdings and exploration activities will play a role in its future potential.

Cardinal

Cardinal Energy has a different focus within the energy sector. This energy stock concentrates on oil assets located in Western Canada, characterized by low production decline rates and a long lifespan. In 2024, its earnings per share (EPS) was reported as $0.68, indicating profitability for the year. Its price-to-earnings ratio currently stands at a valuable 8.18.

Cardinal has been proactive in securing financial resources for its operations and growth. In early 2025, this energy stock successfully secured $105 million through the issuance of senior unsecured debentures. More news regarding its financial health and operational performance is anticipated in the near future from earnings as well. Cardinal’s focus on stable, long-life assets can provide a degree of resilience in a volatile market. Investors will want to see its approach to managing production and costs in the Western Canadian energy landscape will be a key factor in its continued profitability.

Ensign

Ensign Energy Services provides a range of essential services to oilfield operators. In 2024, its EPS were down $0.11, indicating a loss for the year. Ensign’s primary business involves operating drilling rigs and providing well-servicing rigs and related services. This energy stock has operations not only in Canada but also in the United States and internationally, giving it a broader geographical footprint.

Investors will be looking for updates on its financial performance and the demand for its services in various regions during upcoming earnings. The health of the oil and gas drilling sector directly impacts Ensign’s business. Factors like drilling activity levels and rig utilization rates are crucial indicators for this company. Its international operations expose it to different market dynamics and regulatory environments. Efforts to improve efficiency and manage costs will be important for Ensign to return to profitability. The company’s outlook on drilling activity in its key markets will also be closely watched in its upcoming earnings report.

Bottom line

These three energy stocks represent different facets of the Canadian energy sector. Obsidian is focused on getting oil and gas out of the ground. Cardinal is concentrating on stable, long-term oil production. Ensign provides the essential services that the producers need. The global energy market keeps changing due to factors like demand, supply, and geopolitical events. These energy stocks offer potential opportunities for investors who are looking to capitalize on how this sector evolves.

Fool contributor Amy Legate-Wolfe 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.

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