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

Why Investors Can’t Ignore the Geopolitics of Oil

| Matt Smith

Don't ignore the impact that geopolitics has on oil and the outlook for companies such as Baytex Energy Corp. (TSX:BTE)(NYSE:BTE)…

Read more »

The Motley Fool
Energy Stocks

Baytex Energy Corp.: Should Contrarian Investors Buy This Stock?

| Andrew Walker

Baytex Energy Corp. (TSX:BTE)(NYSE:BTE) is starting to look attractive. Here's why.

Read more »

The Motley Fool
Energy Stocks

3 Signs it’s too Soon to Call the End of the Oil Glut

| Matt Smith

Don't expect to see a sustained fall in crude supplies any time soon. It's important for energy investors to focus…

Read more »

The Motley Fool
Dividend Stocks

Why TransAlta Renewables Inc. Is on My Watch List

| Demetris Afxentiou

TransAlta Renewables Inc. (TSX:RNW) continues to be one of the best renewable energy holdings for your portfolio with an impressive…

Read more »

The Motley Fool
Energy Stocks

Investors Beware: These 3 Oil Companies Could Go Bankrupt

| Nelson Smith

Don't be fooled by the low share price of Penn West Petroleum Ltd. (TSX:PWT)(NYSE:PWE), Lightstream Resources Ltd. (TSX:LTS), and Twin…

Read more »

The Motley Fool
Dividend Stocks

Income Investors: Get a 14.8% Yield From Inter Pipeline Ltd.

| Nelson Smith

Covered calls let Inter Pipeline Ltd. (TSX:IPL) shareholders really supercharge their yields.

Read more »

The Motley Fool
Energy Stocks

Better Buy: Cenovus Energy Inc. vs. Canadian Natural Resources Limited

| Matt DiLallo

Here's a look at the balance sheets, portfolios, and upside of Cenovus Energy Inc. (TSX:CVE)(NYSE:CVE) and Canadian Natural Resources Limited…

Read more »

The Motley Fool
Energy Stocks

Penn West Petroleum Ltd. Is Running Out of Time

| Matt DiLallo

Penn West Petroleum Ltd. (TSX:PWT)(NYSE:PWE) has until the end of next month to strike a new agreement with lenders.

Read more »

The Motley Fool
Energy Stocks

Why $50 Oil Is Great News for Baytex Energy Corp.

| Matt DiLallo

Rising crude prices give Baytex Energy Corp. (TSX:BTE)(NYSE:BTE) more options.

Read more »

The Motley Fool
Dividend Stocks

Income Investors: Be Wary of These 3 Huge Yields

| Nelson Smith

Want secure dividends? Then be wary of Potash Corporation of Saskatchewan Inc. (TSX:POT)(NYSE:POT), Student Transportation Inc. (TSX:STB)(NASDAQ:STB), and Veresen Inc.…

Read more »

The Motley Fool
Energy Stocks

The Best Oil Stock You’ve Never Heard About

| Ryan Vanzo

Raging River Exploration Inc. (TSX:RRX) has the best management team in the business.

Read more »

The Motley Fool
Energy Stocks

Why Current Oil Prices Are a Big “Go” Sign for Crescent Point Energy Corp. Shares

| Adam Mancini

Crescent Point Energy Corp. (TSX:CPG)(NYSE:CPG) has long been held as one of Canada's best-in-class oil names, but the oil rout,…

Read more »

The Motley Fool
Dividend Stocks

Income Investors: Top Up Your TFSA With These Dividend-Growth Stars

| Andrew Walker

Here's why Enbridge Inc. (TSX:ENB)(NYSE:ENB) and Toronto-Dominion Bank (TSX:TD)(NYSE:TD) are solid bets.

Read more »

Dividend Stocks

This 9.8% Energy Dividend Keeps Coming

| Ryan Vanzo

Veresen Inc. (TSX:VSN) looks to buck the trend of dividend cuts.

Read more »

Energy Stocks

Raging Wildfires: What’s Happening to Suncor Energy Inc.?

| Ryan Vanzo

Suncor Energy Inc. (TSX:SU)(NYSE:SU) is in a strange place.

Read more »

The Motley Fool
Dividend Stocks

How to Get Consistent Returns From the Market

| Kay Ng

You really don't need to worry about which way the market goes. Simply buy quality stocks such as Express Scripts…

Read more »

The Motley Fool
Energy Stocks

Why Is Baytex Energy Corp. up 290%?

| Ryan Vanzo

Baytex Energy Corp. (TSX:BTE)(NYSE:BTE) is ready for the future.

Read more »

The Motley Fool
Dividend Stocks

Gibson Energy Inc. Just Raised $300 Million: What Now?

| Ryan Vanzo

Gibson Energy Inc. (TSX:GEI) aims to maintain its 8% dividend.

Read more »

The Motley Fool
Energy Stocks

Should You Buy Baytex Energy Corp. or Encana Corporation Today?

| Andrew Walker

Baytex Energy Corp. (TSX:BTE)(NYSE:BTE) and Encana Corporation (TSX:ECA)(NYSE:ECA) are in recovery mode. Is one a better bet?

Read more »

The Motley Fool
Energy Stocks

Oil Prices Are Likely Headed to $80: How to Play the Bull Run

| Adam Mancini

There are good fundamental reasons why oil prices will gradually rise and potentially see a price spike. But short-term weakness…

Read more »

The Motley Fool
Energy Stocks

Suncor Energy Inc.: What You Need to Know

| Ryan Vanzo

Here are the most important factors driving Suncor Energy Inc. (TSX:SU)(NYSE:SU).

Read more »

Dividend Stocks

Can Investors Easily Beat the TSX in Only 15 Minutes a Year?

| Nelson Smith

High-yield stocks like Potash Corporation of Saskatchewan Inc. (TSX:POT)(NYSE:POT) and Inter Pipeline Ltd. (TSX:IPL) are central to a portfolio strategy…

Read more »

The Motley Fool
Dividend Stocks

How Millennials Can Use Dividend-Growth Stocks to Build Massive TFSA Savings

| Andrew Walker

Here's how investors can use a stock like Enbridge Inc. (TSX:ENB)(NYSE:ENB) to build some serious retirement savings in their TFSA.

Read more »

Dividend Stocks

Income Investors: 2 Top Stocks With Reliable Yields Above 4.5%

| Andrew Walker

Here's why Bank of Nova Scotia (TSX:BNS)(NYSE:BNS) and Inter Pipeline Ltd. (TSX:IPL) should be on your radar.

Read more »

The Motley Fool
Energy Stocks

Should You Buy Baytex Energy Corp. or Crescent Point Energy Corp. Today?

| Andrew Walker

Baytex Energy Corp. (TSX:BTE)(NYSE:BTE) and Crescent point Energy Corp. (TSX:CPG)(NYSE:CPG) are both riding the oil recovery higher. Is one a…

Read more »

Dividend Stocks

2 Top Dividend-Growth Stocks for Your RRSP Portfolio

| Andrew Walker

Telus Corporation (TSX:T)(NYSE:TU) and TransCanada Corporation (TSX:TRP)(NYSE:TRP) are great RRSP picks. Here's why.

Read more »

The Motley Fool
Dividend Stocks

Dividend Investors: 2 Stocks With 6% Yields and a Shot at Some Big Long-Term Gains

| Andrew Walker

Here's why income investors should consider Inter Pipeline Ltd. (TSX:IPL) and Altagas Ltd. (TSX:ALA).

Read more »

The Motley Fool
Energy Stocks

Can the Oil Rally Save These 2 Zombie Oil Companies?

| Matt Smith

The recent rally in crude has given hope to Penn West Petroleum Ltd. (TSX:PWT)(NYSE:PWE) and Baytex Energy Corp. (TSX:BTE)(NYSE:BTE), but…

Read more »

The Motley Fool
Energy Stocks

Encana Corporation: Time to Buy In or Bail Out?

| Andrew Walker

Encana Corporation (TSX:ECA)(NYSE:ECA) remains at the mercy of energy prices.

Read more »

Energy Stocks

Will Baytex Energy Corp. Surprise the Market?

| Ryan Vanzo

Baytex Energy Corp. (TSX:BTE)(NYSE:BTE) is beating Wall Street expectations.

Read more »

The Motley Fool
Energy Stocks

Penn West Petroleum Ltd.: Another Zombie Energy Company?

| Matt Smith

Is Penn West Petroleum Ltd. (TSX:PWT)(NYSE:PWE) on the brink of bankruptcy?

Read more »

The Motley Fool
Energy Stocks

Will Gran Tierra Energy Inc. Double?

| Ryan Vanzo

Oil prices are rising. Will Gran Tierra Energy Inc. (TSX:GTE)(NYSE:GTE) explode?

Read more »

The Motley Fool
Dividend Stocks

Emera Inc. Is Unloading its Stake in Algonquin Power & Utilities Corp.

| Ryan Vanzo

Emera Inc. (TSX:EMA) turns its back on Algonquin Power & Utilities Corp. (TSX:AQN). What should you make of it?

Read more »

The Motley Fool
Energy Stocks

Crude Oil Prices Soar to Almost $50: Why it’s Time to Buy Baytex Energy Corp.

| Karen Thomas, MSc, CFA

High-quality, low-cost Baytex Energy Corp. (TSX:BTE)(NYSE:BTE) is set to soar along with the price of oil.

Read more »

The Motley Fool
Dividend Stocks

2 of the Best Wind Energy Stocks Money Can Buy

| Joseph Solitro

Boralex Inc. (TSX:BLX) and TransAlta Renewables Inc. (TSX:RNW) are two of the best ways to invest in the fast-growing wind…

Read more »

The Motley Fool
Energy Stocks

Investors: Is it Finally Time to Drop Penn West Petroleum Ltd.?

| Demetris Afxentiou

Penn West Petroleum Ltd. (TSX:PWT)(NYSE:PWE) announced Q1 results that showed significantly weaker results. With the stock down over 90% in…

Read more »

The Motley Fool
Energy Stocks

Why the Outlook for Oil Remains Pessimistic

| Matt Smith

The optimism surrounding oil and the outlook for companies such as Whitecap Resources Inc. (TSX:WCP) and Continental Resources Inc. (NYSE:CLR)…

Read more »

Dividend Stocks

2 of the Best Infrastructure Stocks Money Can Buy

| Joseph Solitro

Infrastructure stocks such as Inter Pipeline Ltd. (TSX:IPL) and Brookfield Infrastructure Partners L.P. (TSX:BIP.UN)(NYSE:BIP) should be in every investor’s portfolio.…

Read more »

Dividend Stocks

Dividend Investors: Whitecap Resources Inc. Does it Again

| Ryan Vanzo

Whitecap Resources Inc. (TSX:WCP) is the rare oil company with a high, sustainable dividend.

Read more »

The Motley Fool
Energy Stocks

Goldman Sachs Group Inc.: Oil Set for Another Decline

| Ryan Vanzo

In danger is Encana Corporation (TSX:ECA)(NYSE:ECA), Baytex Energy Corp. (TSX:BTE)(NYSE:BTE), and Canadian Natural Resources Limited (TSX:CNQ)(NYSE:CNQ).

Read more »