Canadian energy companies are some of the largest cap companies in the country. Energy stocks in Canada are a good source of dividends; they provide a stable investment and opportunity for growth. In addition, there are innovations in Canadian energy available to invest in, or traditional investments in energy such as oil and gas are still very attractive.
What's in the Article:
- Best Canadian Energy Stocks
- Enbridge Inc. – ENB.TO
- Canadian Natural Resources – CNQ.TO
- TC Energy Corporation – TRP.TO
- Suncor Energy Inc. – SU.TO
- Cenovus Energy – CVE.TO
- Imperial Oil – IMO.TO
- Pembina Pipeline Corporation – PPL.TO
- Keyera – KEY.TO
- CPG Crescent Point Energy – CPG.TO
- Parkland Corporation – PKI.TO
- Birchcliff Energy – BIR.TO
- NextEra Energy – NYSE:NEE
- What companies are considered energy?
- Why Choose Energy Stocks?
Best Canadian Energy Stocks
Canadian energy giants: These are the largest cap stable companies with the most energy assets in Canada. These stocks offer great dividends with regular payments; energy companies are a good source of income investing. These companies continue to do well with rising energy prices, new growth opportunities and a general increase in demand for energy.
Enbridge Inc. – ENB.TO
Enbridge Inc. operates as an energy infrastructure company. The company operates through five segments: Liquids Pipelines, Gas Transmission and Midstream, Gas Distribution and Storage, Renewable Power Generation, and Energy Services. The Liquids Pipelines segment operates pipelines and related terminals to transport various crude oil and other liquid hydrocarbons in Canada and the United States. The Gas Transmission and Midstream segment invests in natural gas pipelines and gathering and processing facilities in Canada and the United States.
The Gas Distribution and Storage segment are involved in natural gas utility operations serving residential, commercial, and industrial customers in Ontario and natural gas distribution and energy transportation activities in Quebec. The Renewable Power Generation segment operates power-generating assets, such as wind, solar, geothermal, waste heat recovery facilities, and transmission assets in North America and Europe.
Finally, the Energy Services segment provides energy marketing services to refiners, producers, and other customers, such as physical commodity marketing and logistical assistance in Canada and the United States. The company was formerly known as IPL Energy Inc. and changed its name to Enbridge Inc. in October 1998. Enbridge Inc. was founded in 1949 and is headquartered in Calgary, Canada.
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Canadian Natural Resources – CNQ.TO
Canadian Natural Resources Limited acquires, explores, develops, produces, markets, and sells crude oil, natural gas, and natural gas liquids (NGLs). The company offers synthetic crude oil (SCO), light and medium crude oil, bitumen (thermal oil), primary heavy crude oil, and Pelican Lake heavy crude oil. Its midstream assets include two crude oil pipeline systems; and a 50% working interest in an 84-megawatt cogeneration plant at Primrose. As of December 31, 2020, the company had total proved crude oil, bitumen, SCO, and NGLs reserves were 10,528 million barrels (MMbbl); total proved plus probable crude oil, bitumen, SCO, and NGLs reserves were 13,271 MMbbl; proved natural gas reserves were 9,465 billion cubic feet (Bcf), and total proved plus probable natural gas reserves were 15,922 Bcf. It operates primarily in Western Canada, the United Kingdom portion of the North Sea, and Offshore Africa. The company was formerly known as AEX Minerals Corporation and changed its name to Canadian Natural Resources Limited in December 1975. Canadian Natural Resources Limited was incorporated in 1973 and is headquartered in Calgary, Canada.
TC Energy Corporation – TRP.TO
TC Energy Corporation operates as an energy infrastructure company in North America. It operates through Canadian Natural Gas Pipelines, U.S. Natural Gas Pipelines, Mexico Natural Gas Pipelines, Liquids Pipelines, and Power and Storage segments. The company builds and operates a 93,400 km network of natural gas pipelines, which transports natural gas from supply basins to local distribution companies, power generation plants, industrial facilities, interconnecting pipelines, LNG export terminals, and other businesses. It also has regulated natural gas storage facilities with a total working gas capacity of 535 billion cubic feet. In addition, it has an approximately 4,900 km liquid pipeline system connecting Alberta crude oil supplies to refining markets in Illinois, Oklahoma, Texas, and the U.S. Gulf Coast.
Further, the company owns or has interests in seven power generation facilities with a combined capacity of approximately 4,200 megawatts that are powered by natural gas and nuclear fuel sources located in Alberta, Ontario, Quebec, and New Brunswick; and owns and operates about 118 billion cubic feet of non-regulated natural gas storage capacity in Alberta. In addition, it has a strategic collaboration with Nikola Corporation. The company was formerly known as TransCanada Corporation and changed its name to TC Energy Corporation in May 2019. TC Energy Corporation was incorporated in 1951 and is headquartered in Calgary, Canada.
Suncor Energy Inc. – SU.TO
Suncor Energy Inc. operates as an integrated energy company. The company primarily focuses on developing petroleum resource basins in Canada’s Athabasca oil sands; explores, acquires, develops, produces, transports, refines, and markets crude oil in Canada and internationally; markets petroleum and petrochemical products under the Petro-Canada name primarily in Canada. It operates in Oil Sands; Exploration and Production; Refining and Marketing, and Corporate and Elimination segments. The Oil Sands segment recovers bitumen from mining and in situ operations and upgrades it into refinery feedstock and diesel fuel or blends the bitumen with diluent for direct sale to the market. The Exploration and Production segment is involved in offshore operations off the east coast of Canada and the North Sea and operating onshore assets in Libya and Syria. The Refining and Marketing segment refines crude oil and intermediate feedstock into various petroleum and petrochemical products; and markets refined petroleum products to retail, commercial, and industrial customers through its other retail sellers. The Corporate and Eliminations segment operates four wind farm operations in Ontario and Western Canada. The company also markets and trades in crude oil, natural gas, byproducts, refined products, and power. The company was formerly known as Suncor Inc. and changed its name to Suncor Energy Inc. in April 1997. Suncor Energy Inc. was founded in 1917 and is headquartered in Calgary, Canada.
Cenovus Energy – CVE.TO
It develops, produces, and markets crude oil, natural gas liquids, and natural gas in Canada, the United States, and the Asia Pacific region with its subsidiaries. The company operates through Oil Sands, Conventional, and Refining and Marketing segments. The Oil Sands segment develops and produces bitumen in northeast Alberta. Its bitumen assets include Foster Creek, Christina Lake, Narrows Lake, and other projects in the early stages of development. The Conventional segment holds assets primarily located in Elmworth-Wapiti, Kaybob-Edson, and Clearwater operating areas of British Columbia and Alberta and various interests in natural gas processing facilities. The Refining and Marketing segment transports and sells crude oil, natural gas, and NGLs. In addition, this segment owns a 50% ownership in Wood River and Borger refineries in the United States and owns and operates a crude-by-rail terminal in Alberta. Cenovus Energy Inc. was founded in 2009 and is headquartered in Calgary, Canada.
Imperial Oil – IMO.TO
Imperial Oil Limited explores, produces, and sells crude oil and natural gas in Canada. It operates through three segments: Upstream, Downstream, and Chemical. The Upstream segment explores and produces crude oil, natural gas, synthetic oil, and bitumen. December 31, 2020, this segment had 138 million oil-equivalent barrels of proved undeveloped reserves. The Downstream part is involved in the transportation and refining of crude oil and the blending, distribution, and marketing of refined products. It also transports crude oil to refineries by contracted pipelines, common carrier pipelines, and rail; maintains a distribution system to move petroleum products to market by pipeline, tanker, rail, and road transport; and owns and operates fuel terminals, natural gas liquids, and products pipelines in Alberta, Manitoba, and Ontario. In addition, this segment markets and supplies petroleum products to the motoring public through approximately 2,400 Esso and Mobil-branded sites.
Further, it sells petroleum products, including fuel, asphalt, and lubricants for industrial and transportation customers, independent marketers, resellers, and other refiners serving the agriculture, residential heating, and commercial markets through branded fuel and lubricant resellers. In addition, the Chemical segment manufactures and markets petrochemicals and polyethylene, such as benzene, aromatic, and aliphatic solvents; plasticizer intermediates; and polyethylene resins. The company was incorporated in 1880 and is headquartered in Calgary, Canada. Imperial Oil Limited is a subsidiary of Exxon Mobil Corporation.
Pembina Pipeline Corporation – PPL.TO
Pembina Pipeline Corporation provides transportation and midstream services for the energy industry. It operates through three segments: Pipelines, Facilities, and Marketing & New Ventures. The Pipelines segment operates conventional, oil sands and heavy oil, and transmission assets with a transportation capacity of 3.1 million barrels of oil equivalent per day, ground storage of 11 million barrels, and rail terminalling capacity of approximately 145 thousand barrels of oil equivalent per day serving markets and basins across North America. The Facilities segment offers an infrastructure that provides customers with natural gas, condensate, and natural gas liquids (NGLs), including ethane, propane, butane, and condensate; and includes 354 thousand barrels per day of NGL fractionation capacity, 21 million barrels of cavern storage capacity, and associated pipeline and rail terminalling facilities. The Marketing & New Ventures segment buys and sells hydrocarbon liquids and natural gas originating in the Western Canadian sedimentary basin and other basins. Pembina Pipeline Corporation was incorporated in 1954 and is headquartered in Calgary, Canada.
Keyera – KEY.TO
Keyera Corp. engages in the energy infrastructure business in Canada. It operates through Gathering and Processing, Liquids Infrastructure, and Marketing segments. The company’s Gathering and Processing segment owns and uses raw gas gathering pipelines and processing plants, collecting and processing raw natural gas, removing waste products, separating the economical components, primarily natural gas liquids, and providing condensate handling services. It has approximately 4,400 kilometres of gathering pipelines and holds interests in 12 active gas plants in Alberta. The company’s Liquids Infrastructure segment provides processing, fractionation, storage, transportation, liquids blending, and terminalling services for natural gas liquids (NGLs) and crude oil through a network of facilities that include underground NGL storage caverns, above-ground storage tanks, NGL fractionation and de-ethanization facilities, pipelines, rail and truck terminals, liquids blending facilities, and the Alberta EnviroFuels facility. It also produces iso-octane. The company’s Marketing segment uses propane, butane, condensate, iso-octane, and liquid blending activities. The company was formerly known as Keyera Facilities Income Fund and changed its name to Keyera Corp. in January 2011. Keyera Corp. was founded in 2003 and is headquartered in Calgary, Canada.
Other Energy Sector Companies Canada:
CPG Crescent Point Energy – CPG.TO
Crescent Point Energy Corp. explores, develops, and produces light and medium crude oil and natural gas reserves in Western Canada and the United States. The company’s crude oil and natural gas properties and related assets are located in Saskatchewan, Alberta, British Columbia, Manitoba, North Dakota and Montana. Crescent Point Energy Corp. was incorporated in 1994 and is headquartered in Calgary, Canada.
Parkland Corporation – PKI.TO
Parkland Corporation operates as a marketer, distributor, and refiner of fuel and petroleum products in Canada, the United States, and internationally. The company operates in Canada and the USA in Supply and Corporate. The Canada segment supplies and supports a coast-to-coast network of 1,860 retail gas stations under the Ultramar, Esso, Fas Gas Plus, Chevron, Pioneer, and Race Trac and operates convenience stores under the On the Run/March© Express brand. Additionally, it offers bulk fuel, bulk and cylinder exchange propane, heating oil, lubricants, and other related products and services to commercial, industrial, and residential customers in various industries, such as oil and gas, construction, mining, forestry, fishing, and transportation under the Ultramar, Bluewave Energy, Pipeline Commercial, Chevron, Columbia Fuels, and Sparlings Propane brands. The International segment operates retail service stations under the Esso, Shell, and Sol brands. It supplies gasoline, diesel, fuel oil, propane, and lubricants to customers in various sectors, including power, oil and gas, and mining. The USA segment operates a network of gas stations. It delivers bulk fuel, lubricants, and other related products and services under the Farstad Oil, Rhinehart Oil, Tropic Oil, Superpumper, Harts, and On the Run brands. The Supply segment manufactures transportation fuels; transports, stores, and markets fuels, crude oil, and liquid petroleum gases; and produces and sells aviation fuel to airlines. This segment also engages in the wholesale, supply, and distribution business. The company was formerly known as Parkland Fuel Corporation and changed its name to Parkland Corporation in May 2020. The company was founded in 1977 and is headquartered in Calgary, Canada.
Birchcliff Energy – BIR.TO
Birchcliff Energy Ltd., an intermediate oil and natural gas company, acquires, explores, develops, and produces natural gas, light oil, condensate, and natural gas liquids in Western Canada. The company holds interests in the Montney/Doig resource play and other assets located in the Peace River Arch area of Alberta. As of December 31, 2020, it had interests in various gas plants, oil batteries, compressors, facilities, and infrastructure; and 198,553.7 net acres of undeveloped land and proved plus probable reserves of 1,040.5 million barrels of oil equivalent. The company was incorporated in 2004 and is headquartered in Calgary, Canada.
NextEra Energy – NYSE:NEE
NextEra Energy, Inc., through its subsidiaries, generates, transmits, distributes, and sells electric power to retail and wholesale customers in North America. The company generates electricity through wind, solar, nuclear, and fossil fuel, such as coal and natural gas. It also develops, constructs, and operates long-term contracted assets focusing on renewable generation facilities, electric transmission facilities, and battery storage projects; and owns, constructs, manages and operates electric generation facilities in wholesale energy markets. As of December 31, 2020, the company operated approximately 28,400 megawatts of net generating capacity. It serves about 11 million people through about 5.6 million customer accounts in Florida’s east and lower west coasts, with approximately 76,200 circuit miles of transmission and distribution lines and 673 substations. The company was formerly known as FPL Group, Inc. and changed its name to NextEra Energy, Inc. in 2010. NextEra Energy, Inc. was founded in 1925 and is headquartered in Juno Beach, Florida.
What companies are considered energy?
Many sectors could be considered “energy,” mainly oil and gas and downstream activities. Renewable energy is very popular, but most opportunities remain with large Canadian energy companies exposed to green energy.
- natural gas producers
- renewable energy (hydro, wind, solar)
- Canadian oil stocks
- fossil fuel refinement
- gas production
- fuel retail
- Canadian pipeline stocks
- midstream energy plays
Why Choose Energy Stocks?
Energy stocks are great opportunities for income from dividends; they provide a stable and growing investment. Of the Canadian headquartered companies, energy represents a considerable revenue for the Canadian economy and is growing in demand.
Some reasons to invest in energy stocks in Canada;
- Stable Large Cap
- Growing Demand for Energy
- safety for long-term investors
- positive cash flows
- positive annual growth rate
- low leverage ratio
- consistent revenues
In the evolving landscape of global energy needs, Canada’s positions itself as a key player with a dynamic blend of traditional and renewable energy offerings. At the center of this paradigm shift, companies like Suncor Energy Inc., TransAlta Renewables, and Enbridge Inc. demonstrate the country’s capability to balance robust economic growth with a sustainable future outlook. The three energy stocks not just command leadership in their respective domains, they also provide promising options for investors seeking growth and sustainability. In this context, the value proposition and growth potential of these companies is explored in detail.
Suncor Energy Inc
Engaged in Essential Energy Operations
Suncor Energy Inc. is a renowned Calgary-based integrated energy company that is primarily known for its focus on Canada’s Athabasca oil sands – one of the world’s largest petroleum resource basins. As a key player in the industry, Suncor’s operations include oil sands development and upgrading, conventional and offshore oil and gas production, petroleum refining, as well as product marketing under the Petro-Canada brand. They are all Canadian mineral resources but have a wide range of energy resources, from oil and gas to natural gas, coal and oil sands.
Eye-Catching Dividends and Growth Potential
From an investment standpoint, Suncor Energy presents a versatile portfolio that offers both high dividends and potent growth potential, making it one of the top energy stocks in Canada. Suncor has proven its capabilities in delivering sustainable dividends to shareholders and continued growth, adapting effectively to the renewed demand for energy in the post-pandemic recovery phase.
Secured Position in Canadian Energy Market
Suncor’s well-established reputation and strategic approach have cemented its position in the Canadian energy market. The company has a significant share of the oil sands market, and its wide-ranging operations from extraction to refining processes ensure a steady stream of revenue and bolster its resilience to industry fluctuations.
Renewable Energy: The Forward-Thinking Approach
In addition to its traditional operations, Suncor also capitalizes on renewable energy opportunities to diversify its portfolio and align with global sustainability goals. From investing in wind farms and biofuels to researching new ways to reduce the carbon footprint of its operations, Suncor’s commitment to a lower-carbon future adds another layer of attractiveness to its stock. This strategic orientation not only safeguards the company’s future but also resonates with a growing cohort of climate-conscious investors.
Shares are categorized by the number of companies producing and selling energy from renewable sources such as wind, solar, geothermal, hydropower, biomass and hydropower.
Positioned Well For The Long run
In the final analysis, Suncor Energy’s consistent performance, strategic diversification, and focus on sustainable growth make it a compelling choice for investors looking for a robust energy stock. Whether it’s the company’s strong marketplace position or its dedication to pursuing renewable energy avenues, the compelling facets of Suncor put it in a prime position for long-term success.
TransAlta Renewables holds an esteemed spot as a renewable energy company deeply rooted in Canada. Its impressive portfolio and environmentally conscious business model make it an attractive investment option for green investors globally, not just within Canada.
A Strong Portfolio Across Multiple Continents
TransAlta has an extensive range of assets spread across Canada, the U.S., and Australia. It predominantly focuses on wind, hydro, and gas power generation. The company’s geographical reach and diverse energy production strategies ensure a broader market, thereby promising more significant returns for investors.
Steady Cash Flow and Sustainability
TransAlta’s steady cash flow offers a safe investment choice for those seeking stable returns. Aside from its impressive financial health, the company upholds a strong commitment towards sustainability. It holds the vision to transform the power generation industry through sustainable practices while providing essential, affordable, and reliable power. This initiative further enhances its reputation, attracting ecoconscious investors.
A Pioneer in Renewable Energy Production
TransAlta is a pioneer in green energy, putting it at the forefront of the renewables revolution in Canada. Its focus on non-fossil fuel energy sources aligns with the global shift towards irreversible clean energy. Such investments are predicted to grow exponentially in the coming years, making TransAlta a prospective leader in this booming sector.
Environmentally Conscious Investments for Stable Returns
In conclusion, TransAlta Renewables offers a unique investment opportunity that combines environmental consciousness with financial stability. The company’s commitment to sustainable power generation practices provides investors with the chance to contribute positively towards the environment, all while reaping stable returns on their investments.
Meet Enbridge Inc.
Enbridge Inc. is a leading energy infrastructure company based in North America. The company specializes in the transportation, distribution, and generation of energy. With its longstanding experience and enduring strategic presence, the company has made itself an indispensable part of the North American energy picture.
Performance Record of Enbridge Inc.
One of the significant strengths of Enbridge Inc. is its consistent track record in delivering strong dividends to its investors. They have consistently shown financial performance even in challenging market conditions which reinforces their standing as a strong performer in the industry. The substantial and continuing dividends provided by Enbridge make it an appealing choice for investors who prioritize steady returns.
Enbridge’s Strategic Asset Base
Enbridge’s asset base provides it with a competitive edge. Its assets are strategically located across North America, allowing it to transport and distribute energy efficiently. This extensive network has positioned Enbridge as a key player in the sector.
Diversified Business Portfolio
Enbridge has a diversified business portfolio that extends beyond just oil and gas. This differentiation allows Enbridge to distribute its risk across various segments, ensuring that a downturn in a single area does not affect the entire operation. This strategy enhances its overall stability.
Commitment to Cleaner Energy Solutions
Recognizing the global shift towards sustainable energy, Enbridge exhibits compelling commitment to cleaner energy solutions. This focus on sustainable initiatives not only provides the company with a green edge but also characterizes the stock as an investment in the future of energy. This commitment places Enbridge Inc. at the lead of the transition to a low-carbon economy, and its proactive steps signal a positive market standing in the coming years.
Enbridge as a Long-Term Investment
Considering Enbridge’s ability to deliver steady dividends, its resilient business model, diversified portfolio, and commitment towards eco-friendly energy solutions, this stock represents an excellent long-term energy investment opportunity in Canada. It’s not just an investment in a company, but a vote of confidence in their continued growth and performance in the evolving energy landscape.
Despite the challenges posed by the shifting energy market, Suncor Energy Inc., TransAlta Renewables, and Enbridge Inc embraces them as opportunities. Their strategic positioning in Canada’s rapidly transforming energy landscape guarantees not just steady investor returns but also innovative solutions to global energy challenges. Each entity’s commitment to sustainable energy generation, their strategic portfolios, coupled with their history of delivering high dividends, underline their attractiveness as reliable investment options in the Canadian energy sector. Investing in these stocks therefore, not only aligns with larger global sustainability goals but also holds the promise of significant financial returns.