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
Dividend Stocks

Should You Be a Buyer of Crescent Point Energy Corp. Following its Strong Q4 Report?

| Joseph Solitro

Crescent Point Energy Corp. (TSX:CPG)(NYSE:CPG) released fourth-quarter earnings on March 11, and its stock has reacted by rising over 3%.…

Read more »

The Motley Fool
Energy Stocks

Canadian Natural Resources Ltd. Is Upgraded: Is This a Signal to Buy?

| Matt Smith

Is the recently upgraded outlook for Canadian Natural Resources Ltd. (TSX:CNQ)(NYSE:CNQ) meaningful for investors?

Read more »

The Motley Fool
Dividend Stocks

Vermilion Energy Inc.: One Company in the Patch That Can Maintain its Dividend

| Matt Smith

Looking for a stable dividend payment in the patch? Then take a closer look at Vermilion Energy Inc. (TSX:VET)(NYSE:VET).

Read more »

The Motley Fool
Energy Stocks

Is Canadian Oil Sands Ltd. Headed Back to $6?

| Andrew Walker

Here's why Canadian Oil Sands Ltd. (TSX:COS) is down 20% in less than a month.

Read more »

The Motley Fool
Energy Stocks

Enbridge Inc. Gets Creative to Optimize Returns for Itself and Suncor Energy Inc.

| Matt DiLallo

Enbridge Inc. (TSX:ENB)(NYSE:ENB) is optimizing its expansion plans to save money, which will help key customers like Suncor Energy Inc.…

Read more »

The Motley Fool
Dividend Stocks

Crescent Point Energy Corp.: Is the 10% Dividend Really Safe?

| Andrew Walker

The dividend yield at Crescent Point Energy Corp. (TSX:CPG)(NYSE:CPG) just breached the ominous 10% level. Read this before you buy.

Read more »

The Motley Fool
Energy Stocks

Suncor Energy Inc. and Canadian Natural Resources Ltd. Outperform Their Peers

| Adam Mancini

Find out the major reasons why Suncor Energy Inc. (TSX:SU)(NYSE:SU) and Canadian Natural Resources Ltd. (TSX:CNQ)(NYSE:CNQ) have outperformed their peers,…

Read more »

The Motley Fool
Energy Stocks

ShawCor Ltd.’s Global Approach Suggests a Long-Term Buying Opportunity

| Doug Watt

Pipeline company ShawCor Ltd. (TSX:SCL) takes the downturn in stride and focuses on its long-term global strategy.

Read more »

The Motley Fool
Energy Stocks

Why the Keystone XL Pipeline’s Prospects Are Bleaker Than Ever

| Benjamin Sinclair

President Obama calls the oil sands "extraordinarily dirty" while talking about TransCanada Corporation's (TSX:TRP)(NYSE:TRP) Keystone XL pipeline. How should investors…

Read more »

The Motley Fool
Energy Stocks

Is Baytex Energy Corp. a Takeover Target?

| Andrew Walker

Baytex Energy Corp. (TSX:BTE)(NYSE:BTE) is an attractive company with great assets. Here's why it could get taken out.

Read more »

The Motley Fool
Energy Stocks

3 Decidedly Different Approaches to Dividends

| Doug Watt

Canadian Natural Resources Limited (TSX: CNQ)(NYSE:CNQ), PrairieSky Royalty Ltd (TSX:PSK), and Wajax Corp (TSX: WSJ) take divergent dividend paths in…

Read more »

The Motley Fool
Dividend Stocks

Retirees: 2 Monthly Dividend Stocks I’d Buy With an Extra $5,000

| Andrew Walker

Here's why Shaw Communications Inc. (TSX:SJR.B)(NYSE:SJR) and Inter Pipeline Ltd (TSX:IPL) are great choices for income investors.

Read more »

The Motley Fool
Energy Stocks

Teck Resources Ltd. Is Up 20% This Year. Is it Too Late to Jump in?

| Benjamin Sinclair

Teck Resources Ltd. (TSX:TCK.B)(NYSE:TCK) shares have done very well this year, but there are still some big concerns.

Read more »

The Motley Fool
Energy Stocks

Does Kevin O’Leary Think You Should Buy Oil Stocks?

| Benjamin Sinclair

Kevin O'Leary was recently asked about oil stocks like EnCana Corporation (TSX:ECA)(NYSE:ECA) and Cenovus Energy Inc. (TSX:CVE)(NYSE:CVE). What did he…

Read more »

The Motley Fool
Energy Stocks

Can the Post-Earnings Rally in Canadian Natural Resources Limited’s Stock Be Sustained?

| Joseph Solitro

Canadian Natural Resources Limited (TSX:CNQ)(NYSE:CNQ) released fourth-quarter earnings on March 5, and its stock responded by rising over 5%. Should…

Read more »

The Motley Fool
Energy Stocks

Is Suncor Energy Inc. Really a Good Investment?

| Andrew Walker

Here's what you need to know before adding Suncor Energy Inc. (TSX:SU)(NYSE:SU) to your portfolio.

Read more »

The Motley Fool
Energy Stocks

Is Now the Time to Buy Canadian Natural Resources Ltd.?

| Benjamin Sinclair

Canadian Natural Resources Ltd. (TSX:CNQ)(NYSE:CNQ) is thriving, while others are struggling. Should you hop on board?

Read more »

The Motley Fool
Energy Stocks

3 Cheap Oil Stocks With the Potential to Soar in 2015

| Nelson Smith

When oil recovers, it's likely that Gran Tierra Energy Inc. (TSX:GTE), Pengrowth Energy Corp (TSX:PGF)(NYSE:PGH), and Athabasca Oil Corp (TSX:ATH)…

Read more »

The Motley Fool
Energy Stocks

Why American Oil Storage Capacity Is Near a Breaking Point

| Benjamin Sinclair

The U.S. is running out of room to store oil. So, if you're thinking of buying Suncor Energy Inc. (TSX:SU)(NYSE:SU)…

Read more »

The Motley Fool
Energy Stocks

How to Overweight Your Portfolio for an Oil Comeback (and Avoid Gambler’s Ruin)

| Jonathan Chevreau

The first thing to consider is whether your portfolio has sufficient energy exposure.

Read more »

The Motley Fool
Energy Stocks

Canadian Oil Sands Ltd. Isn’t Getting Acquired: You Should Buy Anyway

| Nelson Smith

Are you holding out hope that Canadian Oil Sands Ltd. (TSX:COS) gets acquired? Here's why I think it's not going…

Read more »

The Motley Fool
Energy Stocks

1 Critical Fact Americans Don’t Understand About the Keystone XL Pipeline

| Matt DiLallo

In the debate about TransCanada Corporation’s (TSX:TRP)(NYSE:TRP) Keystone XL pipeline, many Americans fail to grasp the fact that the oil…

Read more »

The Motley Fool
Dividend Stocks

Should You Own Husky Energy Inc. or Cenovus Energy Inc. When Oil Recovers?

| Nelson Smith

Every investor wants to position themselves to take advantage of the oil recovery, but which is the better choice: Husky…

Read more »

The Motley Fool
Energy Stocks

This Is the Number One Most Overlooked Reason to Buy Suncor Energy Inc.

| Adam Mancini

Management quality is absolutely essential when evaluating a stock. With Suncor Energy Inc. (TSX:SU)(NYSE:SU) CEO Steven Williams, your hard-earned capital…

Read more »

The Motley Fool
Energy Stocks

Should You Be a Long-Term Buyer of EnCana Corporation Today?

| Joseph Solitro

EnCana Corporation’s (TSX:ECA)(NYSE:ECA) stock has taken a hit since it released fourth-quarter earnings on February 25. Should you buy on…

Read more »

The Motley Fool
Energy Stocks

Why Crescent Point Energy Corp Is the Best Way to Bet on an Energy Rebound

| Benjamin Sinclair

Even if the oil price recovers, the news could get a lot worse before it gets better. With that in…

Read more »

The Motley Fool
Energy Stocks

3 Reasons to Buy TransCanada Corporation After the Keystone Decision

| Benjamin Sinclair

TransCanada Corporation's (TSX:TRP)(NYSE:TRP) Keystone XL pipeline is likely going to be rejected. After that happens, you should buy the shares.

Read more »

The Motley Fool
Energy Stocks

How to Make Sense of All the Investment Options at Enbridge Inc.

| Cameron Conway

As Enbridge Inc. (TSX:ENB)(NYSE:ENB) is looking to spin off more of its core assets to its subsidiaries, you can “double…

Read more »

The Motley Fool
Energy Stocks

Pacific Rubiales Energy Corp.: Is There Value in This Beaten-Up Producer?

| Nelson Smith

Now that the price of oil appears to be stabilizing, is Pacific Rubiales Energy Corp. (TSX:PRE) an investment you want…

Read more »

The Motley Fool
Energy Stocks

EnCana Corporation’s Voracious Appetite for Acquisitions Isn’t Satisfied Just Yet

| Matt DiLallo

After buying US$9 billion in assets last year, EnCana Corporation (TSX:ECA)(NYSE:ECA) is hungry for more.

Read more »

The Motley Fool
Energy Stocks

Why You Shouldn’t Let the Rout in Crude Stop You From Buying Suncor Energy Inc.

| Matt Smith

The oil rout has triggered a frenzied sell-off and extreme volatility in the energy patch, but don't let this deter…

Read more »

The Motley Fool
Energy Stocks

Does Pembina Pipeline Corp. Represent a Long-Term Opportunity Today?

| Joseph Solitro

Pembina Pipeline Corp.’s (TSX:PPL)(NYSE:PBA) stock rose over 2.5% after it released fourth-quarter earnings on February 26. Should you be a…

Read more »

The Motley Fool
Dividend Stocks

Suncor Energy Inc. vs. Crescent Point Energy Corp.: Which Is Best for Dividend Investors?

| Andrew Walker

Suncor Energy Inc. (TSX:SU)(NYSE:SU) and Crescent Point Energy Corp. (TSX:CPG)(NYSE:CPG) are both great companies, but one is a better bet…

Read more »

Energy Stocks

More Bad News for TransCanada Corp.: Is it a Worthwhile Investment Without the Keystone XL Pipeline?

| Matt Smith

Even if the controversial Keystone XL pipeline isn't approved, TransCanada Corp. (TSX:TRP)(NYSE:TRP) still shapes up as a solid long-term investment…

Read more »

The Motley Fool
Dividend Stocks

Cenovus Energy Inc. Stands Behind its 4.75% Dividend

| Matt DiLallo

Cenovus Energy Inc’s (TSX:CVE)(NYSE:CVE) management team makes it clear that its dividend isn’t going anywhere.

Read more »

The Motley Fool
Energy Stocks

Canadian Oil Sands Ltd. Shapes Up as an Attractive Investment

| Matt Smith

Despite a range of headwinds and weak industry fundamentals undermining its outlook, Canadian Oil Sands Ltd. (TSX:COS) looks attractive as…

Read more »

The Motley Fool
Energy Stocks

Do You Own Oil Stocks? Hedge Your Bet With These 3 Companies

| Benjamin Sinclair

Magna International Inc. (TSX:MG)(NYSE:MGA), First Quantum Minerals Ltd. (TSX:FM), and Brookfield Asset Management Inc. (TSX:BAM.A)(NYSE:BAM) all win when oil falls.

Read more »

The Motley Fool
Energy Stocks

Just How Much of a Bargain Are Canada’s Top Oil Companies?

| Benjamin Sinclair

Canadian Natural Resources Ltd. (TSX:CNQ)(NYSE:CNQ) is one of a few stocks that's become popular as a way to bet on…

Read more »

The Motley Fool
Dividend Stocks

Dividend Investors: The Case to Buy Imperial Oil Limited

| Robert Baillieul

Here's what you need to know before buying Imperial Oil Limited (TSX:IMO)(NYSEMKT:IMO).

Read more »

The Motley Fool
Dividend Stocks

2 Unloved Dividend Stocks You Should Consider

| Andrew Walker

Here's why dividend investors should consider Cenovus Energy Inc. (TSX:CVE)(NYSE:CVE) and Pembina Pipeline Corp. (TSX:PPL)(NYSE:PBA) right now.

Read more »