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

Will New Technology Kill Fortis Inc. and TransAlta Corporation?

| Nelson Smith

Will rooftop solar systems squeeze Fortis Inc. (TSX:FTS) and TransAlta Corporation (TSX:TA)(NYSE:TAC), or is the upcoming trend much ado about…

Read more »

The Motley Fool
Dividend Stocks

2 Dividend-Growth Stocks That Still Look Cheap

| Andrew Walker

Here's why Inter Pipeline Ltd. (TSX:IPL) and TransCanada Corporation (TSX:TRP)(NYSE:TRP) should be on your buy list.

Read more »

The Motley Fool
Energy Stocks

Is the Oil Slide Over?

| Ryan Vanzo

OPEC supply could hinder an oil rebound. Crescent Point Energy Corp. (TSX:CPG)(NYSE:CPG) is a great play to ride it out.

Read more »

The Motley Fool
Energy Stocks

Is Baytex Energy Corp. Set to Drop Again?

| Ryan Vanzo

Will the credit markets kill Baytex Energy Corp. (TSX:BTE)(NYSE:BTE)?

Read more »

The Motley Fool
Energy Stocks

Should You Put Royal Bank of Canada or Enbridge Inc. in Your TFSA?

| Andrew Walker

Royal Bank of Canada (TSX:RY)(NYSE:RY) and Enbridge Inc. (TSX:ENB)(NYSE:ENB) often come up as top picks. Is one a better bet…

Read more »

The Motley Fool
Energy Stocks

OPEC May Have Just Given Investors Who Missed the Oil Rally a Second Chance

| Adam Mancini

The much-anticipated OPEC meeting in Doha to discuss a production-freeze pact ended with no agreement, and oil prices plunged as…

Read more »

The Motley Fool
Energy Stocks

Suncor Energy Inc. Is Already Hinting at What it Might Buy Next

| Matt DiLallo

With two deals already in the books, Suncor Energy Inc. (TSX:SU)(NYSE:SU) is already looking for its next deal.

Read more »

The Motley Fool
Dividend Stocks

Innergex Renewable Energy Inc.: Big Dividends From Clean Energy

| Ryan Vanzo

Innergex Renewable Energy Inc. (TSX:INE) turns renewable energy into big profits.

Read more »

The Motley Fool
Energy Stocks

Sorry Folks: Penn West Petroleum Ltd. Is Not Getting Acquired

| Nelson Smith

Many investors take a look at Penn West Petroleum Ltd.'s (TSX:PWT)(NYSE:PWE) book value and assume a takeover offer is inevitable.…

Read more »

The Motley Fool
Dividend Stocks

Dividend Investors: Crescent Point Energy Corp. Is a Long-Term Winner

| Ryan Vanzo

Dividend investors should take a long-term approach to Crescent Point Energy Corp. (TSX:CPG)(NYSE:CPG).

Read more »

The Motley Fool
Energy Stocks

TransAlta Renewables Inc: A Renewable Energy Option for Your Portfolio

| Demetris Afxentiou

TransAlta Renewables Inc. (TSX:RNW) has the growth and dividend potential to fuel any portfolio.

Read more »

The Motley Fool
Energy Stocks

Encana Corporation: Is it Finally Time to Buy This Stock?

| Andrew Walker

Encana Corporation (TSX:ECA)(NYSE:ECA) is up more than 100% in the past two months. Does the rally have legs?

Read more »

The Motley Fool
Energy Stocks

Is Toronto-Dominion Bank or TransCanada Corporation a Better Bet Right Now?

| Andrew Walker

Toronto-Dominion Bank (TSX:TD)(NYSE:TD) and TransCanada Corporation (TSX:TRP)(NYSE:TRP) are both popular stocks. Which one is right for you?

Read more »

The Motley Fool
Energy Stocks

Oil’s Biggest Day of 2016 Is Coming: What You Need to Know

| Adam Mancini

On April 17, Russia and OPEC are meeting to finalize a preliminary deal that would freeze oil production at current…

Read more »

The Motley Fool
Energy Stocks

Goldman Sachs Group Inc. Says Buy These Oil Companies

| Ryan Vanzo

Goldman Sachs Group Inc. (NYSE:GS) recommends Cenovus Energy Inc. (TSX:CVE)(NYSE:CVE) and Encana Corporation (TSX:ECA)(NYSE:ECA). Should you dive in?

Read more »

The Motley Fool
Energy Stocks

The 2 Biggest Risks You Need to Know Before Buying Baytex Energy Corp.

| Adam Mancini

With optimism about oil prices reaching new levels, investors are eager to rush into Baytex Energy Corp. (TSX:BTE)(NYSE:BTE), which has…

Read more »

The Motley Fool
Energy Stocks

3,925 Reasons Why Crescent Point Energy Corp. Sees a Bright Future

| Matt DiLallo

Crescent Point Energy Corp. (TSX:CPG)(NYSE:CPG) is making plans for a massive oil project in the U.S.

Read more »

The Motley Fool
Dividend Stocks

Why TransCanada Corporation Makes a Good Long-Term Investment

| Kay Ng

TransCanada Corporation (TSX:TRP)(NYSE:TRP) is an A-grade company with a strong dividend-growth track record. What more can a long-term investor ask…

Read more »

Dividend Stocks

Think Natural Gas Is Heading Higher?

| Karen Thomas, MSc, CFA

Then buy Encana Corporation (TSX:ECA)(NYSE:ECA) and Peyto Exploration and Development Corp. (TSX:PEY) for relatively safe exposure to the commodity.

Read more »

The Motley Fool
Energy Stocks

Baytex Energy Corp.: This Company Still Has Plenty of Upside Potential

| Nelson Smith

Baytex Energy Corp. (TSX:BTE)(NYSE:BTE) shares are up more than 11%. There could be much more upside if crude cooperates.

Read more »

Energy Stocks

Why the TSX Could Return 10% From Current Levels (and How to Profit)

| Adam Mancini

A combination of recovering oil prices, an improving Canadian economy, and undervaluation could lead the TSX to a double-digit 2016.…

Read more »

The Motley Fool
Energy Stocks

How Bad Is Canada’s Oil Bust? Try the Worst Spending Drop in 70 Years

| Matt DiLallo

From large producers such as Canadian Natural Resources Limited (TSX:CNQ)(NYSE:CNQ) to smaller players such as Penn West Petroleum Ltd. (TSX:PWT)(NYSE:PWE),…

Read more »

The Motley Fool
Energy Stocks

Why the Collapse in Crude Is Creating the Next Supply Shock

| Matt Smith

See how the savage cuts to capital expenditures and production by energy companies such as Baytex Energy Corp. (TSX:BTE)(NYSE:BTE) and…

Read more »

Dividend Stocks

2 Attractive Dividend Stocks I’d Buy With an Extra $10,000

| Andrew Walker

Here's why TransCanada Corporation (TSX:TRP)(NYSE:TRP) and Inter Pipeline Ltd. (TSX:IPL) look like solid bets right now.

Read more »

The Motley Fool
Energy Stocks

2016’s Last Good Opportunity to Buy Oil Stocks May Be Approaching

| Adam Mancini

There are signs the persistent oversupply that caused the oil-price rout is fading, which means a sustainable rally could be…

Read more »

The Motley Fool
Dividend Stocks

3 Alternative Energy Stocks With Yields of 3-7% to Buy Today

| Joseph Solitro

Renewable energy stocks such as Brookfield Renewable Energy Partners LP (TSX:BEP.UN)(NYSE:BEP), Boralex Inc. (TSX:BLX), and Just Energy Group Inc. (TSX:JE)(NYSE:JE)…

Read more »

The Motley Fool
Energy Stocks

Can Suncor Energy Inc. Successfully Integrate Canadian Oil Sands Ltd.?

| Ryan Vanzo

Long term, will the Suncor Energy Inc. (TSX:SU)(NYSE:SU) and Canadian Oil Sands Ltd. (TSX:COS) combination make sense?

Read more »

Dividend Stocks

3 Utility Stocks With Yields of 4-5% to Buy Now

| Joseph Solitro

Interested in utility stocks? If so, Emera Inc. (TSX:EMA), Innergex Renewable Energy Inc. (TSX:INE), and Northland Power Inc. (TSX:NPI) should…

Read more »

The Motley Fool
Energy Stocks

Is Baytex Energy Corp. at Risk of Breaching its Financial Covenants?

| Adam Mancini

Baytex Energy Corp. (TSX:BTE)(NYSE:BTE) is currently one of the most indebted names in its peer group with a net debt…

Read more »

The Motley Fool
Energy Stocks

Suncor Energy Inc. Won’t Run Out of Oil Anytime Soon

| Matt DiLallo

Suncor Energy Inc. (TSX:SU)(NYSE:SU) has a reserve index life of 35 years.

Read more »

The Motley Fool
Dividend Stocks

Hydro One Ltd. Is Raising Billions for Growth

| Ryan Vanzo

With billions in fresh capital, renewable energy giant Hydro One Ltd. (TSX:H) could be headed for a massive growth phase.

Read more »

The Motley Fool
Energy Stocks

1 Surprising Advantage Crescent Point Energy Corp. Has Over its Peers

| Adam Mancini

Crescent Point Energy Corp. (TSX:CPG)(NYSE:CPG) has long been a pioneer in utilizing new technology to enhance oil recovery and boost…

Read more »

The Motley Fool
Energy Stocks

Is Baytex Energy Corp. the Best Way to Play the Rebound in Crude?

| Matt Smith

Baytex Energy Corp. (TSX:BTE)(NYSE:BTE) continues to go from strength to strength.

Read more »

Dividend Stocks

2 RRSP Picks for Long-Term Investors

| Andrew Walker

Here's why Toronto-Dominion Bank (TSX:TD)(NYSE:TD) and Enbridge Inc. (TSX:ENB)(NYSE:ENB) look attractive right now.

Read more »

The Motley Fool
Energy Stocks

Is TransCanada Corporation Really Worth $55 a Share?

| Matt DiLallo

According to analysts, TransCanada Corporation (TSX:TRP)(NYSE:TRP) is becoming less cyclical and therefore much more valuable.

Read more »

The Motley Fool
Energy Stocks

Baytex Energy Corp. Buys Itself Some Breathing Room

| Matt DiLallo

Baytex Energy Corp. (TSX:BTE)(NYSE:BTE) revised its bank credit facilities.

Read more »

The Motley Fool
Energy Stocks

Will Penn West Petroleum Ltd. Survive This Oil Rout?

| Nelson Smith

If the price of crude doesn't recover in a hurry, shares of Penn West Petroleum Ltd. (TSX:PWT)(NYSE:PWE) may not be…

Read more »

The Motley Fool
Energy Stocks

Kuwait: Prepare for $50 Oil

| Ryan Vanzo

If Kuwait's forecast is correct, it could result in big gains for Encana Corporation (TSX:ECA)(NYSE:ECA) and Whitecap Resources Inc. (TSX:WCP).

Read more »

The Motley Fool
Energy Stocks

Why Canadian Natural Resources Limited and Crescent Point Energy Corp. Sank 4% on Friday

| Benjamin Sinclair

Comments from Saudi Arabia are bad news for oil producers such as Canadian Natural Resources Limited (TSX:CPG)(NYSE:CPG) and Crescent Point…

Read more »

The Motley Fool
Energy Stocks

Encana Corporation: Is the Run Over?

| Ryan Vanzo

Without higher oil prices, Encana Corporation (TSX:ECA)(NYSE:ECA) should drift lower.

Read more »