While oil prices struggled to find direction in 2025, many Canadian energy stocks walked a very different path. In fact, shares of some energy companies managed to outperform the broader market and push higher even as crude stayed under pressure, proving once again that fundamentally strong businesses do not always need perfect commodity conditions to perform.
In this article, I’ll talk about two top energy stocks to buy in Canada as they continue to show resilience and strong long-term growth potential.
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Enerflex stock
Instead of starting with a producer tied directly to daily oil prices, let’s start by looking at Enerflex (TSX: EFX), a company benefiting from long-term energy infrastructure demand. This Calgary-based firm mainly focuses on providing natural gas infrastructure, compression, processing, and energy transition solutions.
After rallying by more than 50% over the last year, this energy stock currently trades at $20.68 per share with a market cap of roughly $2.5 billion. Enerflex also pays a small quarterly dividend, offering an annualized yield of about 0.8% at the current market price.
The recent strength in its share price could mainly be attributed to the company’s continued focus on strong execution. In the third quarter, Enerflex’s revenue climbed 29% YoY (year-over-year) to US$777 million with the help of strong project execution and the completion of the Bisat-C Expansion project in Oman. These factors, coupled with higher margins and cost efficiencies, also drove its adjusted quarterly EBITDA (earnings before interest, taxes, depreciation, and amortization) to a record US$145 million.
Notably, Enerflex generated US$43 million in free cash flow during the quarter, even while investing in growth projects. At the same time, the company’s balance sheet continued to improve, with net debt reduced to US$584 million and leverage down to about 1.2 times.
Overall, with a $1.1 billion engineered systems backlog and long-term contracted infrastructure revenue, Enerflex continues to look like one of the best Canadian energy stocks to buy now.
Headwater Exploration stock
Headwater Exploration (TSX: HWX) could be another attractive energy stock to consider now. This Canadian firm is an oil and gas producer with its operations focused mainly in Alberta.
After surging nearly 40% over the last 12 months, HWX stock is now trading near $9 per share with a market cap of about $2.1 billion. Headwater pays a quarterly dividend, currently translating into an attractive annualized yield of roughly 4.9%.
Record production and disciplined capital allocation could be two of the main factors behind the recent rally in its share price. In the September quarter, the company’s production averaged 22,523 barrels of oil equivalent per day, up 11% YoY (year-over-year). With this, its net income came in at $35.9 million, while cash flow remained strong despite softer pricing.
Another main factor that supports Headwater’s long-term outlook is its focus on secondary recovery. More than 50% of its corporate oil production is now backed by secondary recovery methods, which reduce decline rates and lower maintenance capital needs. In 2026, Headwater expects to achieve 8% production growth per share, $185 million in capital spending, and adjusted funds flow of $300 million at a US$60 oil price.
With no bank debt and reliable dividend payouts, Headwater remains one of the top Canadian energy stocks to buy now for long-term investors seeking reliable income.
