Oil & Gas Stocks Making Moves on the TSX in 2025

Ignore the headlines: these three TSX energy stocks still deliver big cash flow, dividends, and growth that investors shouldn’t overlook.

Amy Legate-Wolfe

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. Before joining Motley Fool Canada, she 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. 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 7, 2025 4:40 pm EDT

| More on: CNQIMOTOU

Key Points

Canadian Natural (CNQ) generates massive cash flow, returned $1.6B in Q2, holds $4.8B liquidity, and yields about 5.3%.
Tourmaline (TOU) is a gas growth story with LNG deals, raised production targets, a special dividend, low debt, and strong free cash flow.
Imperial Oil (IMO) combines upstream and refining with renewable diesel optionality, posted its best Q2 income in 30+ years, and is accelerating buybacks.

Oil and gas stocks haven’t exactly been in the headlines lately, with gold and artificial intelligence (AI) taking centre stage. But make no mistake, these companies can still be some of the best investments out there. The key, though, is focusing on company-specific information, rather than oil and gas as a sector.

That’s because the world is changing. While we still need oil and gas, smaller companies are being purchased by the larger powerhouses. This is creating opportunities for the most stable oil and gas stocks. Today, we’re going to look at three of these energy stocks providing opportunities over and over again.

oil pump jack under night sky — Source: Getty Images

CNQ

First up, we have Canadian Natural Resources (TSX:CNQ), a large, cash-generating, dividend and buyback machine. It’s low risk, but high income and value. And that’s been seen time and again through earnings. During the second quarter, the energy stock created massive cash flow and returns, with adjusted funds flow of $3.3 billion, and returned $1.6 billion in dividends and buybacks to shareholders.

Furthermore, it’s growing, with a large increase in production in part thanks to acquisitions. Yet despite the growth, its balance sheet remains strong, with low, breakeven and cost controls, and US$4.8 billion in liquidity. And even with all this great news, the energy stock still trades at just 16 times earnings, and with a 5.3% dividend yield. So, for investors seeking income and value, with lower risk to Canadian oil exposure, it’s an ideal option.

TOU

Next up, we have Tourmaline Oil (TSX:TOU), a high-quality gas growth story only growing further thanks to its LNG and expansion options. This has created growth and free cash flow, with second-quarter production coming in so well that it increased its targets. In fact, the energy stock also announced a special dividend, while maintaining base dividends. And with minimal debt, it looks in a prime position for further good news.

Some of that news should come from its long-term LNG feed agreement with Uniper. Its hedging program also smooths out its near-term cash flow. Yet again, it trades at just 11.3 times earnings, with a 3.3% dividend yield. Altogether, its disciplined spending and free cash flow focus have created a solid long-term hold.

IMO

Finally, we have Imperial Oil (TSX:IMO), an integrated, low-volatility refiner with upstream and downstream production. It’s also created renewable diesel optionality, allowing for a defensive and balanced investment. The integrated model proved its worth during the second quarter once again, with net income hitting $949 million, the highest second quarter in over 30 years!

What’s more, the energy stock started Canada’s largest renewable diesel at Strathcona. Meanwhile, it continued its 5% repurchase program and plans to accelerate repurchases — all while trading at 19.7 times earnings, and offering a 2.3% dividend yield. Altogether, it’s the perfect balance of both commodity upside and downstream stability.

Bottom line

All three of these energy stocks remain strong options, though for different reasons. You can get the high yield and large scale from CNQ, the growth and gas focus from TOU, and balanced exposure from IMO. And with all offering significant income through dividends and buybacks, these remain solid choices on the TSX today.