As investors continue to closely monitor the ongoing fighting around the Strait of Hormuz, I’d resist the temptation to turn every TSX energy stock into a geopolitical trade. Brent crude briefly jumping above US$100 per barrel after renewed U.S.-Iran attacks certainly makes oil and gas producers more attractive right now, as it could boost their profits and cash flows. But nobody knows how long the conflict will last, whether disruptions will worsen, or how quickly crude could retreat if tensions ease.
That’s why I’d rather own an energy company I could still feel comfortable holding even if the U.S.-Iran conflict-related developments suddenly became less dramatic. Let me highlight two fundamentally solid TSX energy stocks I’d keep on my radar while the Strait of Hormuz remains a major risk for global energy markets.
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Tourmaline Oil stock
Let’s start with Tourmaline Oil (TSX: TOU), a TSX-listed energy producer that could offer investors a great way to navigate today’s energy market volatility. As Canada’s largest natural gas producer, its operations span natural gas, oil, condensate, and natural gas liquids in the Western Canadian Sedimentary Basin.
After climbing 9% over the last year, TOU stock currently trades at $63.02 per share, giving the company a market cap of $24.4 billion. The energy company also rewards investors with quarterly dividends, with its yield standing at 3.2% at the current price.
In the second quarter, the Canadian natural gas producer’s average production declined 4% year-over-year (YoY) to 594,198 barrels of oil equivalent per day. Notably, the company stored additional natural gas and deferred some activity during a period of weak natural gas prices, which weighed on its production.
Still, Tourmaline’s diversified marketing strategy remains one of its key strengths. Due to this strategy, its realized natural gas price averaged $3.12 per thousand cubic feet in the latest quarter. On top of that, the company has growing exposure to international natural gas pricing and recently signed a long-term agreement with AltaGas to increase propane and butane exports through the REEF terminal.
With net debt at $1.5 billion and major Northeast British Columbia infrastructure projects progressing, Tourmaline is focusing on opportunities to reduce costs and grow free cash flow.
Overall, its financial strength, international pricing exposure, and diversified energy business make TOU an attractive stock to watch while the Strait of Hormuz conflict keeps global energy markets volatile.
Whitecap Resources stock
For investors seeking greater exposure to stronger oil prices, Whitecap Resources (TSX: WCP) could be another attractive energy stock worth keeping on the radar. In short, it is an oil-weighted producer with operations across Alberta and Saskatchewan.
Unlike Tourmaline, WCP stock has outperformed the broader market by a wide margin, delivering a solid 80% return over the last year. As a result, it now trades at $18.22 per share with a market cap of $22.1 billion and a 4.1% annualized dividend yield.
The ongoing trend in the company’s results helps explain that rally as its petroleum and natural gas revenue surged about 93% YoY in the second quarter to $2.6 billion. Its net profit nearly tripled to $890 million, while funds flow jumped 90% YoY to a record $1.4 billion.
Adding to the optimism, Whitecap’s average production climbed nearly 33% YoY to 388,894 barrels of oil equivalent per day. After this outperformance, the company increased its 2026 production guidance to between 384,000 and 386,000 barrels of oil equivalent per day. With liquids making up 61% of second-quarter production, WCP also has meaningful exposure to oil and condensate prices.
That combination of rising production, stronger cash generation, and oil exposure makes WCP an interesting stock if Strait of Hormuz disruptions keep crude prices elevated. At the same time, its improving underlying business gives investors more than just a short-term geopolitical bet.
