Oil & Gas Stocks Are Back on the TSX30 After a Year on the Sidelines

Oil and gas stocks have returned to the TSX30. Here’s what drove Tenaz Energy and Valeura Energy higher and what investors should watch next.

Key Points
  • Unexpected Oil & Gas Leaders on TSX30: Tenaz Energy and Valeura Energy surprisingly join the top-performing TSX30 list with outstanding three-year returns.
  • Growth Through Strategic Acquisitions: Both companies expanded through acquisitions, with Tenaz focusing on Dutch offshore assets and Valeura on Thai oil fields.
  • Future Growth Potential: Despite past successes unlikely to repeat, both companies maintain growth opportunities, making them appealing for a diversified portfolio.

Oil and gas stocks are back. More specifically, they are back on the TSX30. And surprisingly, two companies representing the sector aren’t names that most Canadian investors would expect to see.

For those unfamiliar with the index, the TSX30 ranks the 30 best-performing stocks on the Toronto Stock Exchange based on their dividend-adjusted returns over the past three years. And this year, there are two oil and gas stocks with impressive returns.

What makes that even more impressive is that oil and gas stocks were not on the 2025 TSX30 list.

The two stocks that made the list this year are Tenaz Energy (TSX: TNZ) and Valeura Energy (TSX: VLE). Both stocks delivered impressive gains of 1,463% and 471%, respectively.

Both companies reached the list after using acquisitions to build larger energy businesses outside Canada.

Here’s what drove those gains and whether either stock still offers an opportunity today.

Oil industry worker works in oilfield

Source: Getty Images

Tenaz Energy turned acquisitions into rapid growth

Calgary-based Tenaz Energy is an energy producer with operations in both Canada and the Netherlands. Following the acquisition of its offshore Dutch assets, Tenaz’s growth really accelerated. That acquisition made the company one of the largest operators in the Dutch North Sea.

Production averaged 17,125 barrels of oil equivalent per day during the second quarter of 2026, up 6% from the previous quarter. The company is forecasting an average production of between 19,500 and 22,500 barrels per day for the full year.

That growth helps explain some of the excitement around Tenaz Energy stock. As of the time of writing, the stock has gained 236% over the trailing 12-month period.

Valeura Energy built a profitable base in Thailand

Valeura Energy followed a similar acquisition-driven strategy but instead built that expansion around offshore oil fields in the Gulf of Thailand.

The company operates four producing fields and regularly drills new wells to offset natural declines and recover more oil using its existing offshore infrastructure.

In other words, Valeura isn’t relying on the same wells until they run dry. Instead, it can drill into other parts of each field, helping keep production higher as older wells decline.

Turning to production, in the most recent quarter, Valeura averaged production of 22,300 barrels per day. That higher volume helped the company report US$154.1 million in adjusted cash flow from operations and US$105 million in free cash flow during the most recent quarter.

At the end of the second quarter, Valeura had US$316.5 million in cash and carried no debt. This gives Valeura room to fund its existing projects and consider further acquisitions in Southeast Asia.

Are these oil and gas stocks still worth buying?

Tenaz and Valeura have more going for them than their TSX30 rankings. Both companies used acquisitions to create larger international businesses, and each still has visible growth opportunities.

Those three-year returns are unlikely to be repeated, but both companies still have room to grow beyond the gains that put them on the TSX30. This makes them great options to consider as part of a larger, well-diversified portfolio.

Fool contributor Demetris Afxentiou has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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