Member Login
  1. Category
    2. /
  2. Investing
    3. /
  3. Energy Stocks
    4. /

Energy Stocks

What are energy stocks? 

Energy stocks represent partial ownership in companies that supply electricity and fuel for the global economy. The energy sector in Canada is vast, comprising a large portion of the TSX. Energy stocks include: 

  • Liquefied natural gas companies
  • Natural gas companies 
  • Oil companies 

(Renewable energy stocks are part of the TSX’s utilities sector.)

How can you pick energy stocks?

1. Look for companies with a promising future 

It’s no surprise that the energy sector is under intense scrutiny. With climate change at the front of many people’s minds (from governments to investors), energy companies, old and new, are constantly adapting to a new world. Many people want cleaner energy. And it’s the energy sector’s challenge to make clean energy available — and profitable, too. 

For that reason, investors will do well to look for innovative companies that are actively solving contemporary energy problems. Though we’re not suggesting investors ignore bigger companies in oil or natural gas, we are suggesting you keep an eye on the future as you’re picking your energy stocks. 

Given the direction the world is going, ask yourself: who will be around in 20, 30, or even 40 years? That’s one of the biggest questions you can answer as an energy stock investor. 

2. Analyze an energy company’s financial standing

The future of an energy company depends in part on how it’s handling its finances now. Given that prices within the energy sector are extremely volatile — just look at how the price of gas fluctuates — you want to be sure an energy company has the financial strength to withstand a recession. Some factors you may want to analyze include: 

  • Strong balance sheet: the company should have lots of liquid cash on hand, as well as a capacity to borrow (if needed). It should also have low amounts of debt and a high investment grade. 
  • Low production costs: the company shouldn’t be spending the majority of its revenue on producing energy. The company should have a stable revenue with minimal exposure to price fluctuations. 
  • Conservative dividend payout ratio: though everyone likes to make money on dividends, if a company dishes too much out, it could end up cutting or reducing its dividend program during hard times. 

3. Check here for our writer’s picks

Our writers are constantly analyzing the energy sector, as they look for Canadian energy stocks that are growing, as well as those that are under- or over- valued. Keep checking back here to see which stocks they recommend — and which they don’t. 

[KevelPitch/]

In addition, you should read up on our Renewable Energy Stocks list.

Check back here for the most up to date information about energy stocks.

Top Articles

Energy Stocks

2 Top TSX Energy Stocks to Buy in January 2023

| Robin Brown

Here are two top TSX energy stocks that had a great year in 2022 and could be primed for strong…

Read more »

An engineer works at a hydroelectric power station, which creates renewable energy.
Energy Stocks

Why Algonquin Power & Utilities Stock Slid 49.3% Last Year

| Tony Dong, MSc, CETF®

Here's why shares of AQN fell hard last year.

Read more »

Energy Stocks

Is CNQ Stock a Buy in January 2023?

| Andrew Walker

CNQ stock is down from the 2022 high. Is it time to buy?

Read more »

Energy Stocks

Worried About a Recession? 3 TSX Giants to Outpace the Market

| Aditya Raghunath

Recession-resistant TSX stocks such as Fortis and Hydro One are well poised to deliver outsized returns to shareholders in 2023.

Read more »

A worker overlooks an oil refinery plant.
Energy Stocks

The Best Energy Dividend Stock for a Decade of Passive Income

| Aditya Raghunath

Canadian Natural Resources is a top TSX stock that has delivered stellar gains to long-term investors. Let's see why CNQ…

Read more »

oil and gas pipeline
Energy Stocks

Enbridge Is a High-Yielding Canadian Dividend Stock to Buy Now and Own Forever

| Adam Othman

Consider adding Enbridge stock to your portfolio, as it still trades below its all-time highs to capture its high-yielding dividend…

Read more »

Dividend Stocks

3 Growth Stocks You Can Buy Right Now with Less Than $100

| Christopher Liew, CFA

Capital of less than $100 is enough to buy one of these three promising growth stocks that don't belong to…

Read more »

Energy Stocks

2 Energy Stocks You Can Buy Right Now to Play The EV Boom

| Adam Othman

Add these two Canadian renewable energy stocks to capitalize on the growing EV popularity.

Read more »

Recent Energy Stocks News

The Motley Fool
Energy Stocks

Baytex Energy Corp.: Should You Buy the Bounce?

| Andrew Walker

Baytex Energy Corp. (TSX:BTE)(NYSE:BTE) is up 20% in a week. Is the sell-off over?

Read more »

The Motley Fool
Dividend Stocks

TFSA Investors: 2 Dividend-Growth Stocks to Help You Save for Retirement

| Andrew Walker

Here's why Enbridge Inc. (TSX:ENB)(NYSE:ENB) and Royal Bank of Canada (TSX:RY)(NYSE:RY) are attractive picks.

Read more »

The Motley Fool
Energy Stocks

Suncor Energy Inc. Takes a $105 Million Hit: Time to Buy?

| Ryan Vanzo

Suncor Energy Inc. (TSX:SU)(NYSE:SU) hasn't kept up with peers such as Canadian Natural Resources Limited (TSX:CNQ)(NYSE:CNQ). Is it time to…

Read more »

The Motley Fool
Energy Stocks

Contrarian Investors: Is it Time to Buy Crescent Point Energy Corp.?

| Andrew Walker

Crescent Point Energy Corp. (TSX:CPG)(NYSE:CPG) is an attractive pick if oil has truly bottomed.

Read more »

Energy Stocks

2 of Canada’s Top Mutual Funds Own This Stock: Should You?

| Alexander John Tun

Seven Generations Energy Ltd. (TSX:VII) is a favourite of Canada's two best-performing mutual funds. Should you own this fast-growing natural…

Read more »

The Motley Fool
Energy Stocks

Why Teck Resources Ltd. Wants Its Credit Rating Back

| Matt DiLallo

Teck Resources Ltd. (TSX:TCK.B)(NYSE:TCK) was downgraded to junk last year.

Read more »

The Motley Fool
Energy Stocks

3 Big Reasons Oil Is About to Stage its Next Leg up

| Adam Mancini

Sentiment about the recent OPEC agreement, evidence that supply is declining, and the end of refinery maintenance season all point…

Read more »

The Motley Fool
Energy Stocks

Is the OPEC Agreement About to Send Oil to US$60?

| Adam Mancini

A commodity strategist recently said the OPEC agreement could send oil to US$60 in the next few months. While possible,…

Read more »

The Motley Fool
Energy Stocks

Should You Buy Suncor Energy Inc. Today?

| Andrew Walker

Suncor Energy Inc. (TSX:SU)(NYSE:SU) is holding up well in a turbulent energy sector. Is this the safest stock to play…

Read more »

Dividend Stocks

Buy This Stock for a Growing Stream of Monthly Income

| Joseph Solitro

Are you interested in earning monthly income? If so, Inter Pipeline Ltd. (TSX:IPL) should be one of the top stocks…

Read more »

The Motley Fool
Energy Stocks

OPEC’s Latest Move Could Be Too Little, Too Late

| Matt Smith

Despite OPEC's recent agreement, the pain is not over for beaten-down, high-cost upstream oil producers such as Baytex Energy Corp.…

Read more »

The Motley Fool
Energy Stocks

How the Latest OPEC Agreement Will Alter the Canadian Energy Industry

| Demetris Afxentiou

Suncor Energy Inc. (TSX:SU)(NYSE:SU) and Imperial Oil Limited (TSX:IMO)(NYSE:IMO) will both benefit from the latest OPEC agreement, but those benefits…

Read more »

The Motley Fool
Energy Stocks

What OPEC’s Historic Agreement Means for Canadian Energy Shareholders

| Adam Mancini

OPEC surprised nearly everybody by reaching a consensus on the need to cut crude output. Although a deal is not…

Read more »

The Motley Fool
Energy Stocks

Goldcorp Inc.’s Founder Thinks Gold Is Headed to $1,900: Here’s Why He May Be Right

| Adam Mancini

Recently, Robert McEwan, founder of Goldcorp Inc. (TSX:G)(NYSE:GG), said he sees gold at $1,900 by year end. Here's why he…

Read more »

Energy Stocks

What Does the OPEC Agreement Mean for Crescent Point Energy Corp.?

| Jacob Donnelly

Crescent Point Energy Corp. (TSX:CPG)(NYSE:CPG) could be a smart buy, even if OPEC doesn't agree to curb production.

Read more »

The Motley Fool
Dividend Stocks

Should Suncor Energy Inc. or Encana Corp. Be Your Next Oil Bet?

| Andrew Walker

Suncor Energy Inc. (TSX:SU)(NYSE:SU) and Encana Corp. (TSX:ECA)(NYSE:ECA) are moving higher. Is one more attractive today?

Read more »

The Motley Fool
Dividend Stocks

Young Investors: Should Toronto-Dominion Bank or Enbridge Inc. Be in Your TFSA?

| Andrew Walker

Toronto-Dominion Bank (TSX:TD)(NYSE:TD) and Enbridge Inc. (TSX:ENB)(NYSE:ENB) are both great stocks. Is one more attractive today?

Read more »

The Motley Fool
Dividend Stocks

The Smart Money Owns Just Energy Group Inc.: Should You Buy it too?

| Nelson Smith

Jim Pattison and Ron Joyce, two of Canada's richest men, own about 30% of Just Energy Group Inc. (TSX:JE)(NYSE:JE). What…

Read more »

The Motley Fool
Energy Stocks

RRSP Investors: Should You Buy TransCanada Corporation or Bank of Montreal?

| Andrew Walker

TransCanada Corporation (TSX:TRP)(NYSE:TRP) and Bank of Montreal (TSX:BMO)(NYSE:BMO) are two of Canada's top stocks. Is one a better RRSP pick?

Read more »

The Motley Fool
Energy Stocks

3 Reasons to Like Innergex Renewable Energy Inc.

| Demetris Afxentiou

Innergex Renewable Energy Inc. (TSX:INE) represents a unique long-term opportunity for investors in a growing industry.

Read more »

The Motley Fool
Energy Stocks

Suncor Energy Inc. Just Spent $105 Million on a Dry Hole

| Matt DiLallo

Suncor Energy Inc.’s (TSX:SU)(NYSE:SU) non-commercial exploration well reminds investors of the risks of offshore drilling.

Read more »

The Motley Fool
Energy Stocks

Should You Buy Baytex Energy Corp. or Crescent Point Energy Corp. to Play an Oil Rebound?

| Andrew Walker

Baytex Energy Corp. (TSX:BTE)(NYSE:BTE) and Crescent Point Energy Corp. (TSX:CPG)(NYSE:CPG) are popular picks in the Canadian market. Is one a…

Read more »

The Motley Fool
Energy Stocks

Ontario Cancels Green Energy Projects: Will Renewable Stocks Lose?

| Ryan Vanzo

Hydro One Ltd. (TSX:H) and Canadian Solar Inc. (NASDAQ:CSIQ) can find ways to win, even with lower spending.

Read more »

Energy Stocks

Crescent Point Energy Corp.: Time to Buy the Dip?

| Andrew Walker

Crescent Point Energy Corp. (TSX:CPG)(NYSE:CPG) has given back most of its 2016 gains. Should you own this stock today?

Read more »

The Motley Fool
Energy Stocks

TransCanada Corporation: Focus on New and Acquired Pipelines

| Demetris Afxentiou

TransCanada Corporation (TSX:TRP)(NYSE:TRP) continues to represent a great opportunity to investors with multiple billion-dollar projects in progress.

Read more »

The Motley Fool
Dividend Stocks

Dividend Investors: 2 Top Stocks to Start a TFSA Retirement Portfolio

| Andrew Walker

Here's how stocks such as Enbridge Inc. (TSX:ENB)(NYSE:ENB) and Canadian National Railway Company (TSX:CNR)(NYSE:CNI) can help you set aside some…

Read more »

Energy Stocks

Baytex Energy Corp.: Is the Latest Pullback an Opportunity to Buy?

| Andrew Walker

Baytex Energy Corp. (TSX:BTE)(NYSE:BTE) has given back a good part of its gains. Should you buy, sell, or hold this…

Read more »

The Motley Fool
Energy Stocks

Why Crescent Point Energy Corp. Is a New Company (and Shares Are Set to Show it)

| Adam Mancini

Crescent Point Energy Corp. (TSX:CPG)(NYSE:CPG) was long discounted by shareholders due to its dividend and acquisition-focused strategy that was financed…

Read more »

The Motley Fool
Energy Stocks

Is Oil Hitting an Invisible Price Ceiling?

| Ryan Vanzo

The CEO's of Exxon Mobil Corporation (NYSE:XOM) and ConocoPhillips (NYSE:COP) are nervous. Here is one energy stock that can still…

Read more »

The Motley Fool
Energy Stocks

Is Enbridge Inc. Becoming Too Complex for Investors?

| Matt DiLallo

Enbridge Inc. (TSX:ENB)(NYSE:ENB) will control four MLPs once its deal for Spectra Energy Corp. (NYSE:SE) closes.

Read more »

The Motley Fool
Energy Stocks

Crescent Point Energy Corp. Shares Are Down 22%: Is it 2016’s Best Opportunity?

| Adam Mancini

Crescent Point Energy Corp. (TSX:CPG)(NYSE:CPG) set a near-term high of about $22 per share in mid-August and have plunged 22%…

Read more »

Energy Stocks

Brookfield Infrastructure Partners L.P. Just Made a Major $6.9 Billion Deal

| Ryan Vanzo

In partnership with Brookfield Asset Management Inc. (TSX:BAM.A)(NYSE:BAM), the company is moving heavily into the energy sector.

Read more »

Energy Stocks

Encana Corporation: Should You Buy This Stock Now?

| Andrew Walker

Encana Corporation (TSX:ECA)(NYSE:ECA) is raising US$1 billion in cash. Is this a good sign for investors?

Read more »

Dividend Stocks

Contrarian Investors: 2 Unpopular Dividend Stocks With Big Upside Potential

| Andrew Walker

Here's why Altagas Ltd. (TSX:ALA) and Inter Pipeline Ltd. (TSX:IPL) should be on your radar.

Read more »

The Motley Fool
Energy Stocks

How Understanding Seasonal Investing Can Dramatically Boost Your Returns

| Adam Mancini

Certain markets predictably perform well at certain times of the year. Understanding seasonality can help you time when to buy…

Read more »

The Motley Fool
Dividend Stocks

Retirees: 2 Top Dividend-Growth Stocks to Help Supplement Pension Income

| Andrew Walker

Enbridge Inc. (TSX:ENB)(NYSE:ENB) and Royal Bank of Canada (TSX:RY)(NYSE:RY) are attractive income picks. Here's why.

Read more »

The Motley Fool
Dividend Stocks

Did Pembina Pipeline Corp. Deserve to Rise 40%?

| Ryan Vanzo

If you invest in energy, you need to check out the consistent earnings of Pembina Pipeline Corp. (TSX:PPL)(NYSE:PBA).

Read more »

The Motley Fool
Dividend Stocks

Get Big Renewable Energy Dividends With Hydro One Ltd.

| Ryan Vanzo

Clean energy investors can get a growing 3.2% dividend from Hydro One Ltd. (TSX:H).

Read more »

The Motley Fool
Energy Stocks

Despite the Uncertainty, Suncor Energy Inc. Has Plenty of Growth Ahead

| Matt DiLallo

Suncor Energy Inc. (TSX:SU)(NYSE:SU) CEO Steve Williams sees oil-price volatility ahead.

Read more »

The Motley Fool
Energy Stocks

Despite Getting the Green Light, These Oil Sands Projects Might Never Move Forward

| Matt DiLallo

Husky Energy Inc. (TSX:HSE) was one of three producers to get the go-ahead for a new oil sands project in…

Read more »