1 Energy Stock Aiming Quietly Aiming for its Biggest Year Yet

Tourmaline is built to turn energy volatility into cash, not just ride the latest oil spike.

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.

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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 9, 4:40 pm EDT

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Key Points

Tourmaline is Canada’s largest natural gas producer, with growing liquids and export-linked exposure.
Q1 2026 showed record production and strong cash flow, supporting dividends and potential specials.
The stock isn’t cheap, so returns depend on sustained commodity strength and execution on LNG-linked growth.

Oil keeps stealing the spotlight. Prices jumped again as global supply worries returned, and Canadian energy stocks suddenly look harder to ignore. But chasing crude every time it moves can make investors dizzy. Oil rallies, falls back, then rallies again. The better move may be buying a company built to profit through the cycle, not just during one hot week.

Oil industry worker works in oilfield — Source: Getty Images

TOU

That’s why Tourmaline Oil (TSX:TOU) stands out right now. It’s Canada’s largest natural gas producer, but this isn’t just a gas story anymore. Tourmaline stock has spent years building scale, adding liquids exposure, signing export-linked contracts, and returning cash to shareholders. Now it enters 2026 with record production, stronger commodity pricing, and a business model that looks ready for its biggest stretch yet.

Energy security has moved back to centre stage. Canada has huge natural gas resources, and global buyers still want a reliable supply from stable countries. Liquefied natural gas demand also gives Canadian producers a bigger long-term opportunity. If North American gas markets tighten and export options improve, Tourmaline stock could benefit from better prices without needing a wild oil boom.

Numbers don’t lie

The company’s latest quarter showed why investors keep watching. In the first quarter of 2026, Tourmaline stock averaged record production of 666,089 barrels of oil equivalent per day (boe/d). It also generated $862.2 million in cash flow. Those numbers show a company already operating at serious scale, yet still positioned to grow through better pricing, liquids demand, and export access.

Plus, Tourmaline stock’s business is fairly simple to understand. It produces natural gas, natural gas liquids, and oil from major Canadian basins. Its size gives it cost advantages, operating flexibility, and access to infrastructure. It also sells into multiple markets, which helps when one pricing hub looks weak.

The dividend adds another reason to care. Tourmaline stock pays a regular quarterly dividend currently yielding 3.14%, and it often adds special dividends when cash flow supports it. That approach gives investors a mix of reliability and upside. The regular payout offers a base return. The special dividends reward shareholders when commodity prices cooperate. For Tax-Free Savings Account (TFSA) investors, that can create a useful income stream without forcing them into slower-growth utility stocks.

Looking ahead

Tourmaline stock expects better natural gas liquids pricing this year, helped by global liquids prices, optimized ethane extraction, and access to Pacific propane exports. It also continues to build long-term LNG-linked exposure. Those pieces could help the company earn more from the same broad production base, which investors should like more than growth built only on heavy spending.

Valuation deserves attention. Tourmaline stock already has a reputation as one of Canada’s best-run energy companies. That means the stock rarely stays ignored for long. Investors buying today need to believe the next phase of cash flow, dividends, and export-linked growth can justify the price. As of writing, it trades at 35.4 times earnings, which isn’t exactly cheap.

Still, the case looks compelling. Tourmaline stock offers scale, discipline, income, and upside to stronger energy markets. It isn’t the flashiest stock on the TSX, and that’s fine. When oil moves again, investors don’t need drama. They need a company that can turn volatility into cash.

Bottom line

Tourmaline stock gives investors exposure to a broader Canadian energy advantage: abundant reserves, export ambition, and management teams that learned hard lessons from past boom-and-bust cycles. That combination can age well in a long-term portfolio over decades ahead. And right now, even $7,000 can bring in ample income.