Buffett Goes Big: 2 Canadian Energy Stocks to Watch Now

Buffett’s big energy moves have traders excited. Here are two Canadian stocks that could profit from renewed investor interest in oil and gas.

Amy Legate-Wolfe

Author Bio Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Her work can also be found at Canada's National Observer, where she writes on the business side of climate action. Before joining Motley Fool Canada, Amy wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Social Media Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published October 1, 2025 4:50 pm EDT

| More on: BRK.ABRK.BOXYCNQTOU

Key Points

Canadian Natural (CNQ) is a large, cash-generating oil producer offering 5% yield, buybacks, and value at 11.6x earnings.
Tourmaline (TOU) is Canada’s largest gas producer with strong free cash flow, growth projects, and a 3.2% yield plus special dividends.
Buffett’s OXY headline lifts energy sentiment, but prefer disciplined, dividend‑paying Canadian names over chasing short‑term hype.

If there’s one thing (or should I say, person) that’s going to get investors moving, it’s Warren Buffett. The Oracle of Omaha had investors rushing towards oil after multiple reports came out stating that Buffett’s Berkshire Hathaway (NYSE:BRK.B)(NYSE:BRK.A) is nearing a deal to acquire Occidental Petroleum‘s (NYSE:OXY) petrochemical business for US$10 billion.

It would be the largest deal by Berkshire since the Alleghany acquisition in 2022 for US$13.7 billion. And it comes after years of saving, bringing the company’s cash to record highs. With the investment in OXY, however, other companies could be just as bullish for investors to consider. All while staying close to home.

canadian energy oil — Image source: Getty Images

CNQ

Buffett’s interest in energy continues to increase investor interest, and a key beneficiary should be Canadian Natural Resources (TSX:CNQ). The energy stock is one of Canada’s largest integrated producers, with a management actively returning capital through buybacks and dividends for its investors.

During the second quarter, production and net earnings both climbed, with adjusted funds flow reaching $3.3 billion. The company also closed several strategic acquisitions. However, cash remains low, though operating cash flow is high. Meanwhile, debt is moderate with a debt-to-equity of 45%.

Then there’s the value and income to consider. CNQ offers a 5.2% dividend yield at writing, supported by a solid 57% payout ratio. Plus, it still looks valuable trading at just 11.6 times earnings. Therefore, it’s a reasonable option, especially for a major oil and gas producer.

TOU

Another option to consider is Tourmaline Oil (TSX:TOU), the largest pure-play natural gas producer in Canada. The energy stock offers strong cash generation, low leverage, and a clear growth pathway. This comes from its position as a beneficiary of rising international gas prices, and new pipeline and export corridors.

During the second quarter, production jumped 10% year over year, with cash flow at $822.8 million and free cash flow hitting $316.9 million. The company did so well, in fact, that it announced a special $0.35 per share dividend and a quarterly base dividend of $0.50.

Yet the energy stock still looks valuable even after all this growth and income. It trades at forward 11.7 times earnings, while also providing a 3.2% dividend yield at writing. So you’re getting in on income and growth, all for a valuable price.

Bottom line

Yes, OXY is an exciting investment, but it’s also a headline maker. That’s why searching for value is a far better option, which is exactly what Warren Buffett is doing. In fact, let’s say you have $15,000 to put towards these two energy stocks on the TSX today. Here’s what that could look like from dividend income alone right now.

COMPANY	RECENT PRICE	NUMBER OF SHARES	DIVIDEND (Annual/Share)	TOTAL PAYOUT (Annual)	FREQUENCY	TOTAL INVESTMENT
TOU	$60.94	246	$2.00	$492	Quarterly	$14,991.24
CNQ	$44.22	339	$2.35	$796.65	Quarterly	$14,990.58

So if you want to be a true Buffett investor, these other Canadian energy stocks could be better options. Always make sure to speak with your financial investor before making any decisions.