Suncor, Enbridge, or Canadian Natural? Here’s Which Oil Stock Makes Sense for Your Portfolio

Let’s compare and contrast three of the best energy stocks in the Canadian market, and see which comes out as the winner for most long-term investors.

Key Points
  • These three oil stocks each provide solid investing rationales, especially with crude prices surging of late.
  • The winner may surprise you - let's dive in!

Canadian investors should feel lucky, in the sense that there are simply so many top-tier energy stocks to consider in this market. Many of the companies I highlight in this space carry impressive yields, making them top dividend stocks worthy of consideration for those with long investment time horizons.

Today, I’m going to compare and contrast three of the best energy stocks in the TSX. Let’s dive into which may be best for the average long-term investor looking to navigate these uncertain times.

Canadian investor contemplating U.S. stocks with multiple doors to choose from.

A person stands in front of several doors representing different U.S. stock options for Canadian investors.

Suncor

Suncor (TSX: SU) is Canada’s integrated oil major, widely viewed as one of the best energy stocks in the world.

I agree. The company crushed expectations in 2025, with record upstream production hitting 840,000–870,000 barrels per day (bbl/d) into 2026. That’s good for a more than 100,000 bbl/d increase from 2023 levels, thanks to in-situ oil sands projects and reliability gains.

On top of this key catalyst, the company’s refining utilization soared past 100%. What that means from a fundamentals perspective is Suncor is now generating much more robust funds from operations (FFO) – even at WTI below $45. In other words, every $1/barrel increase in oil prices adds $215 million to FFO. That’s the kind of operating leverage most investors are after right now.

Enbridge

A company with a little bit less exposure to energy prices, though it’s a major energy infrastructure player to consider for the long-term, is Enbridge (TSX: ENB).

Pipeline giant Enbridge boasts rock-solid fundamentals from its 30,000 km Mainline network. Perhaps the most notable factoid I think is important for investors to consider is that Enbridge alone ships 25% of North America’s crude. Thus, much like the issues around the Straight of Hormuz, this company has become one that’s absolutely integral to the North American energy independence story right now.

Importantly, the company’s fundamentals remain robust. Enbridge saw record production last year, with EBITDA surging to nearly $20 billion. This growth was fueled by Mainline contracts and U.S. Gulf Coast expansions, with distributable cash flow (DCF) more than covering its 5.3% dividend yield.

Canadian Natural Resources

Last, but certainly not least on this list of top oil stocks to consider, is Canadian Natural Resources (TSX: CNQ).

Canadian Natural continues to be among the most dominant oil sands players, with one of the lowest breakeven prices per barrel (around US$40 WTI). That means that as the company utilizes its impressive asset base to pump record volumes (while slashing costs), investors have become increasingly eager to put their capital to work in this name.

I think that trend will continue, given that Canadian Natural’s relatively low valuation stands in stark contrast to the company’s stability and the size of its reserves. With a solid 2026 production outlook and oil remaining above US$100 per barrel at the time of writing, this is a stock I’m considering at current levels.

Which is the winner?

Suncor’s integrated model leverages refining upside but risks differentials. I expect to see FFO growth if WTI holds at $70-plus. On the other hand, Enbridge’s contracted pipes ensure 5–7% DCF CAGR to 2028, insulated from cycles. And finally, Canadian Natural’s low costs and output ramps promise superior earnings momentum, with the company’s management team now targeting impressive 17% growth this year.

For the average investor seeking reliable income with upside, I think Canadian Natural Resources (CNQ) is the winner. This is a stock with a cost edge, profitability growth visibility, and the kind of balance sheet all investors can get behind right now.

Fool contributor Chris MacDonald 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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