Energy stocks are at the peak of their upcycle. Before 2022, the energy sector was maturing, with increasing consolidation of smaller players, large companies pausing expansion plans, and focusing on cost-cutting. However, geopolitical tensions have fired up supply chains and revived the sector. While oil demand remains stable, with marginal growth, countries are diversifying their oil supply. This has stirred up oil prices and made energy stocks the most sought-after.
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Canadian energy stocks to watch when oil prices rise
Many energy infrastructure companies have intensified their capital spending on new pipelines to open Alberta’s oil sands reserves to the world. Whenever oil headlines heat up, they fuel share prices of oil producers and energy infrastructure companies. Walking through the Canadian energy supply chain, here are three energy stocks to keep an eye on alongside the investing strategy to follow for each.
Cenovus Energy
Cenovus Energy (TSX:CVE) is an integrated oil company that does everything from producing, refining, transmitting, and retailing oil and gas. It is not the largest oil company in Canada but a key beneficiary of the uptrend. Last year, the company acquired MEG Energy, which increased its production output just before the US-Iran war. Thus, the high oil prices have helped Cenovus earn a surplus, which it is directing towards repaying debt. It aims to reduce its net debt to $4 billion in the long term, from $8.1 billion as at March 31, 2026.
Hence, you will see the Cenovus share price rise faster than others when oil prices rise. However, this same strength is also its weakness, as a dip in oil prices reduces the surplus. The company is investing in technology to reduce breakeven costs and sustain dividends even at US$45 WTI.
To make money from Cenovus, consider buying the stock when the oil price trades below $70/barrel. A lower oil price will reduce the share price and help you lock in a higher dividend yield. Cenovus doesn’t have a strong dividend history, but it has grown dividends by an average annual rate of 10% throughout the upcycle. You can enjoy high dividends when oil prices fall and share price rallies when oil prices rise. Consider booking profits if the stock price rallies 30–50%, as such a high rally is not sustainable.
Enbridge
Enbridge (TSX:ENB) has the largest oil and gas pipeline infrastructure in North America. It is building a gas pipeline to connect the Woodfibre LNG plant, which will export liquefied natural gas to Asia through the Pacific route. The company is also building renewable energy plants for hyperscalers like Meta. A lot of capital is being used for new infrastructure projects, which will generate new income sources for years to come.
Whether you should buy Enbridge at its all-time high is a topic of debate as the stock shows no signs of slowing. If you already own Enbridge shares, keep holding. One investing strategy could be to buy Enbridge shares in small quantities throughout the year to take advantage of dollar cost averaging. ENB is still a reliable dividend stock and could see a steady increase in share price as projects worth $9.9 billion come online in 2027.
Bird Construction
Though not an energy stock, it is strategically relevant to the energy industry. Bird Construction (TSX:BDT) is the key beneficiary of nation-building initiatives. The Canadian government is promoting the development of energy and artificial intelligence (AI) infrastructure. The government is looking to diversify its oil exports to Asian countries and reduce its reliance on the United States.
This has given rise to several infrastructure projects, driving up Bird’s order book. Bird Construction’s share price has surged 200% since November 2025, and more upside is likely as new orders pour in. It has an order backlog of $11 billion in the first quarter of 2026, up from $8.3 billion a year ago.
The stock still has potential to grow another 100–200% as the capital spent by the likes of Enbridge becomes revenue for Bird Construction.
Investing tip
Each of the above three energy stocks is riding the energy upcycle, and how you invest in each of them will help you maximize returns.
