Oil spikes can make the TSX look like a one-sector show, but smart investors usually look for more than just the biggest producer. Before the next jump in crude, it can make sense to own companies with direct oil exposure, low-cost production, strong cash flow, or service businesses that benefit when drilling budgets rise. That mix can offer both upside and a bit more balance when energy markets get noisy.
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PXT
Parex Resources (TSX:PXT) gives investors direct exposure to oil prices without the baggage of a bloated balance sheet. It operates in Colombia and focuses on conventional oil production, so it tends to respond quickly when crude prices move higher. Over the last year, Parex stayed busy beyond just pumping oil. It proposed and then signed a deal to acquire Frontera Energy’s Colombian E&P assets, kept buying back shares, and continued paying dividends.
The latest numbers were solid. In 2025, Parex generated funds flow from operations (FFO) of US$455 million and net income of US$255 million. In the fourth quarter alone, it produced FFO of US$122.9 million, or US$1.28 per share, and free funds flow of US$38.3 million. The oil stock now trades at a trailing price-to-earnings (P/E) of 7.5 and a forward P/E of 6.2 as of writing, which still looks modest for an oil producer with this kind of profitability.
Management’s 2026 guidance assumed Brent at just US$60, average production of 45,000 to 49,000 barrels of oil equivalent per day (boe/d), and free funds flow around US$105 million at the midpoint. So if oil stays well above that, the upside could be meaningful. The main risk is country exposure in Colombia and the fact that oil can turn just as fast as it rises.
PEY
Peyto Exploration (TSX:PEY) is mostly a natural gas producer in Alberta’s Deep Basin, not a pure oil name, yet energy rallies often lift sentiment across the whole group, especially when an oil stock already has low costs and disciplined operations. Over the last year, Peyto kept leaning on that formula. It reported strong 2025 results, kept paying monthly dividends, and built one of the stronger hedge books in the sector.
Its earnings story looks strong enough on its own. Peyto reported 2025 FFO of $860.5 million, or $4.24 per diluted share, plus free funds flow of $375.2 million. Quarterly earnings came in at $125.9 million, or $0.61 per diluted share, and it reduced net debt by $171 million in 2025 while returning $264.9 million to shareholders. It also offers a forward P/E of 9.3, which is not stretched for an oil stock.
PHX
PHX Energy (TSX:PHX) is not a producer. It provides directional drilling services, including rotary steerable systems, so it benefits when producers spend more to drill and develop wells. If oil spikes and stays high enough to change spending plans, service names can get a second wave of upside. PHX also had a strong run over the last year, including recognition as a TSX30 winner in 2024, record annual revenue in 2025, and both regular and special dividends in early 2026.
The financials look appealing too. PHX reported fourth-quarter 2025 revenue of $183.9 million and annual revenue of $709.6 million, both records. Annual earnings were $54.7 million, or $1.13 per diluted share, while adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) reached $132.8 million.
It also paid $0.80 per share in regular dividends for 2025 and added a $0.20 special dividend for 2026. The oil stock traded at a trailing P/E of 10.4 and a dividend yield above 7%, which is a compelling mix for a services name. The risk is simple: if producers stay cautious and keep capital spending tight, service companies can lag even when commodity prices look great on paper.
Bottom line
If you want to prepare for the next oil spike, these three oil stocks offer different ways to do it. Parex gives you direct oil leverage, Peyto adds disciplined cash flow with a steadier profile, and PHX brings the drilling-services angle that can surprise to the upside when spending improves. That mix could give TSX investors a smart way to lean into higher energy prices without making the exact same bet three times.
