If you’re looking to earn strong returns on your investments in the long run, you may want to consider investing in Canadian growth stocks. And the great news is that the market still has many opportunities, especially if you focus on companies that are executing well and positioning themselves for future growth.
Overall, the key here is to find businesses that are not just surviving but expanding through smart acquisitions, strong financial performance, and clear long-term strategies. Let me highlight two Canadian energy companies that stand out for their solid upside potential in 2026.
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Tenaz Energy stock
The first company in my list is Tenaz Energy (TSX: TNZ). Currently trading at $65.01 per share with a market cap of $2.1 billion, TNZ stock’s performance has been remarkable of late. It has surged 396% over the past year and more than 3,000% over the last three years. These outstanding returns reflect its strong execution and a clear strategy.
Tenaz focuses on oil and gas exploration and production in Western Canada and the Netherlands. Its growth has been driven largely by acquisitions, including Nederlandse Aardolie Maatschappij (NAM) Offshore and Hansa Hydrocarbons.
In 2025, the company delivered strong results as its fourth-quarter production averaged 15,556 boe/d (barrels of oil equivalent per day), up 32% from the previous quarter. Similarly, its full-year production reached 9,609 boe/d, a 257% increase from 2024.
Meanwhile, Tenaz stock’s funds from operations (FFO) came in at $62.1 million in the fourth quarter and $120.4 million for the full year. As a result, its net profit for the year reached $315.6 million, marking a sharp turnaround from losses in 2024.
Now, Tenaz plans to invest between $250 million and $275 million in 2026 to support drilling and development. Overall, its proved developed producing reserves have also increased significantly, supporting future production growth.
Saturn Oil & Gas stock
Saturn Oil & Gas (TSX: SOIL) could be another amazing stock you can consider buying in 2026. It currently trades at $6.10 per share with a market cap of $1.1 billion. While its gains are not as dramatic as Tenaz, SOIL stock has still climbed 197% over the past year.
The company mainly focuses on oil and gas production in Alberta and Saskatchewan. In 2025, it reported record production of 43,657 boe/d in the fourth quarter, exceeding guidance. At the same time, its production for the full year jumped 46% on a debt-adjusted per-share basis to around 41,728 boe/d.
Meanwhile, its adjusted funds flow (AFF) reached $464 million last year, up 22% year over year. And its free funds flow came in at $223 million, representing a strong 50% yield.
Saturn has also been reducing debt, as it repaid $110 million in 2025 and ended the year with $761.5 million in net debt. Also, it returned more than $33 million to shareholders through buybacks.
Looking forward, Saturn plans to grow through its core-up strategy, focusing on acquiring complementary assets and developing existing resources. It also has a large inventory of drilling locations to support future growth.
Foolish takeaway
Tenaz Energy and Saturn Oil & Gas are both delivering strong operational and financial results while positioning themselves for continued growth. While energy stocks can be volatile, these companies have shown clear execution and disciplined strategies. For investors willing to take on some risk, they could offer significant upside potential in 2026 and beyond.
