Oil Volatility Is Back: 3 Canadian Stocks to Buy Now

Energy volatility is back, but these three TSX gas stocks offer scale, upside torque, and even a takeover catalyst.

Amy Legate-Wolfe

Author Bio 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. Her work can also be found at Canada's National Observer, where she writes on the business side of climate action. Before joining Motley Fool Canada, Amy 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. Social Media 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 June 3, 9:30 pm EDT

Oil prices can turn fast, but so can opportunity. Energy investors have had plenty to watch lately. Crude prices remain jumpy, natural gas demand keeps building, and global buyers still want reliable supply from stable countries. That puts Canada back in focus. The trick, as always, is avoiding companies that only look good when commodity prices run hot. Investors need producers with strong assets, disciplined spending, and enough financial strength to handle the next price swing.

TOU

Tourmaline Oil (TSX: TOU) fits that brief better than almost anyone on the TSX. The company is Canada’s largest natural gas producer, with operations across the Alberta Deep Basin, northeast British Columbia, and the Montney. That scale gives it a real edge when markets get choppy. It can spread costs, control infrastructure, and move gas to better-priced markets.

Tourmaline stock looks relevant now as natural gas could regain attention as power demand rises and liquefied natural gas exports ramp up. In its latest first-quarter results, Tourmaline stock reported record production and pointed to higher free cash flow expectations for 2026 and 2027. That gives investors a useful mix of growth potential, income, and a balance sheet that doesn’t need heroic commodity prices to work. It also gives investors one of the cleaner ways to ride Canadian gas without reaching too far down the risk ladder.

The dividend adds another draw. Tourmaline stock planned a $0.50 quarterly base dividend for late June, and it has used special dividends before when cash flow allows. At writing, its yield now sits near 3.1%. The risk comes from gas prices. If North American prices weaken again, the stock could wobble. Still, for investors who want a blue-chip energy name with gas leverage, Tourmaline stock deserves a close look.

BIR

Birchcliff Energy (TSX: BIR) offers a smaller, more leveraged way to play the same theme. It focuses on the Montney in Alberta, producing natural gas, light oil, condensate, and other liquids. That makes it more sensitive to commodity prices than Tourmaline stock, but also gives it more torque if gas prices improve.

Birchcliff stands out now because it rebuilt momentum after a tougher stretch for gas producers. In May, the company reported strong first-quarter 2026 results and declared a $0.03 quarterly dividend. That payout won’t make income investors rich overnight, but it shows management still wants to return cash while funding growth.

The appeal here comes from operating leverage. If gas prices improve, Birchcliff could see cash flow move higher quickly. Its Montney position also gives it long-term relevance as LNG Canada and broader gas demand reshape the market. The risk is that smaller energy producers can take harder hits when prices fall. Therefore, Birchcliff suits investors who can handle volatility and want more upside than a steadier giant might offer.

ARX

ARC Resources (TSX: ARX) brings a different twist. It already ranks among Canada’s strongest Montney producers, with a mix of natural gas and liquids that supports steady cash flow. Its first-quarter 2026 numbers showed why the market likes it. ARC reported net income of $584 million, or $1.03 per share, up sharply from last year.

The bigger catalyst, though, is Shell‘s planned acquisition of ARC. Shell agreed to buy the company in a deal worth about $16.4 billion, including assumed debt. That gives ARC shareholders exposure to a major global energy company, while also showing how valuable Canadian Montney assets have become.

For investors, ARC now looks less like a pure standalone stock and more like a deal-driven opportunity. The upside depends on the transaction closing and the value of Shell shares. The risk comes from deal timing, regulatory issues, or changes in energy sentiment. Still, Shell’s interest sends a strong message: high-quality Canadian gas assets matter.

Bottom line

Oil volatility can scare investors away, but it can also spotlight the stronger names. Tourmaline stock offers scale, Birchcliff offers torque, and ARC offers a takeover-backed vote of confidence. For long-term investors who can stomach commodity swings, these three TSX energy stocks look well-positioned for the next big chapter.