Canada was the world’s third-largest exporter of energy in 2021 and consistently is among the top ten natural gas producers, according to the U.S. Energy Information Administration. Each of the top seven companies in our list of the ten biggest energy companies in Canada had a market capitalization above $20 billion. Two had market capitalizations of more than $10 billion and the market capitalization of one is just under that.
Energy companies in Canada and worldwide have witnessed soaring commodity prices due to the Russian invasion of Ukraine and the ensuing war. According to the World Bank, energy prices are expected to increase more than 50% in 2022.
Due to the severe changes in trade patterns and capabilities, higher prices may affect the transition to clean energy options. Demand is forcing some nations to focus on the production of fossil fuel energy even as the production of renewable energy should be a primary effort.
Canadian energy stocks may benefit from the ongoing upward pressure on commodity prices and market turmoil. Due to Canada’s standing as a major producer of oil and gas, revenues of its energy companies may continue to grow, pushing dividend growth, as well.
Key Takeaways
- Canada is one of the world’s largest producers of oil and gas and ranked in the top five for crude oil and natural gas.
- As a result, Canadian energy companies can be quite attractive to some investors.
- Canadian energy companies are known for paying strong dividends.
- They’re not only involved in the famous oil sands; many have shifted their focus to renewables.
- The Russian/Ukrainian war has had a pronounced effect on the demand for Canadian energy.
1. Enbridge Inc.
Enbridge Inc. (NYSE: ENB, TSX: ENB.TO) had a market capitalization of $90.42 billion U.S. dollars ($116.02 billion Canadian) as of April 2022. Enbridge is the largest energy company in Canada. It focuses on transporting rather than producing energy. Enbridge’s businesses include oil pipelines, natural gas distribution, and alternative energy. The company’s stock dividend yield was 7.21% as of February 2022.
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2. Canadian Natural Resources
Canadian Natural Resources Ltd. (NYSE: CNQ, TSX: CNQ.TO) is an exploration and production company with crude oil and natural gas operations in Western Canada and crude oil operations in offshore African waters and the North Sea. In April 2022, Canadian Natural Resources had a market capitalization of $72.87 billion U.S. dollars ($93.27 billion Canadian). The company’s stock dividend yield was 3.23% as of March 2022.
3. TC Energy Corporation
TC Pipeline & Energy Corporation (NYSE: TRP, TSX: TRP.TO), formerly known as TransCanada, is an energy conglomerate with operations in energy infrastructure and power generation. Its extensive oil and natural gas pipeline operations stretch across Canada and the U.S. It had a market capitalization of $55.07 billion U.S. dollars ($70.49 billion Canadian) as of April 2022. TC Energy had a 7.26% dividend yield as of March 2022.
4. Suncor Energy Inc.
Suncor Energy Inc. (NYSE: SU, TSX: SU.TO) is an integrated oil and gas company with operations across Canada and the United States. The company’s Canadian oil sands properties deliver the lion’s share of its annual production. In April 2022, Suncor was Canada’s fourth-largest energy company with a market capitalization of $52.85 billion U.S. dollars ($67.65 billion Canadian). The company had a dividend yield of 2.71% as of March 2022.
Canada has the fourth-largest global supply of oil reserves and the third-largest reserves of uranium.
5. Cenovus Energy
Cenovus Energy, Inc. (NYSE: CVE, TSX: CVE.TO) is another large integrated energy company with oil and gas exploration operations. The firm is also involved in oil production and refining. In addition to conventional oil and natural gas properties, the company has substantial oil sands holdings, which expanded when Cenovus bought out the 50% stake of ConocoPhillips in 2017. The company had a market capitalization of $38.74 billion U.S. dollars ($49.59 billion Canadian) as of April 2022. Unlike the other top performers, CVE had a low dividend yield of only 0.50% as of March 2022.
6. Imperial Oil
Imperial Oil Ltd. (NYSE: IMO; TSX: IMO.TO) is an integrated oil and gas giant. In addition to refining and petrochemical operations, the company also markets fuel, lubricants, and other products under the Esso and Mobil brands. Imperial Oil has a market capitalization of $33.58 billion U.S. dollars ($42.98 billion Canadian) as of April 2022. It had a dividend yield of 1.83% as of March 2022.
7. Pembina Pipeline Corporation
Pembina Pipeline Corporation (NYSE: PBA, TSX: PPL.TO) had a market capitalization of $21.25 billion U.S. dollars ($27.2 billion Canadian) in April 2022. The company has three divisions that focus on pipelines, processing, and new ventures. Pembina began operations in 1997, and its headquarters in Calgary supports a focus on Western Canada. The dividend yield was 5.70% as of April 2022.
8. Tourmaline Oil
Tourmaline Oil (TSX: TOU.TO) is Canada’s largest natural gas producer with operations in the Western Canadian Sedimentary Basin. Its goal is to be a top sustainable energy company in North America. Tourmaline focuses on technologies and strategies to minimize the impact it has on the environment. It won a $3.22 million grant to develop an electric-powered drilling process to reduce emissions. In April 2022, it had a market capitalization of $17.03 billion U.S. dollars ($21.75 billion Canadian). Its dividend yield was 1.23% as of April 2022.
9. Cameco
Cameco (NYSE: CCJ, TSX: CCO) is a global provider of the fuel required for cleaner air. It produces uranium concentrates and mineral reserves. It also supplies uranium refining, conversion, and fuel manufacturing services. Cameco delivers the nuclear fuel products that generate electricity globally.As of April 2022, the company’s market capitalization was $10.51 billion ($13.39 billion Canadian). Its dividend yield was 0.23% as of December 2021.
10. Arc Resources
Arc Resources (TSX: ARX.TO) is a leading oil and gas company with operations focused in the Montney region of Alberta and northeast British Columbia. It has a commodity mix of approximately 62% natural gas and 38% crude oil and liquids. It currently produces about 345,000 barrels of oil equivalent per day. As of April 2022, it had a market capitalization of $9.53 billion ($12.20 billion Canadian). The company’s dividend yield was 1.62% as of January 2022.
What Is the Best Canadian Energy Stock to Buy?
Energy companies in Canada in general have benefited from the upward pressure on demand and stock prices generated by the conflict in Ukraine. This may cause more investors to take a good look at Canadian energy stocks. Depending on an investor’s selection criteria for stocks (such as dividend yield or price action), most of the top ten Canadian energy companies, including Enbridge and Suncor, may qualify as potential purchases.
How Many Canadian Energy Companies Are There?
There are dozens currently listed on the Toronto Stock Exchange (TSX) and the TSX-Venture Exchange. They range from large international companies to smaller caps and those just emerging.
What Is the Largest Renewable Energy Company in Canada?
Canada is a leader in renewable energy and many of the green companies in this sector are innovators. The market capitalizations change constantly. Algonquin Power & Utilities focuses on electricity and had a recent market cap of about $9 billion.
The Bottom Line
Energy companies in Canada have a noteworthy presence in the list of top energy companies worldwide. Prices of Canadian energy stocks have been in an upward trend, especially since the onset of the conflict in Ukraine.
Due to the increasing importance of renewable energy and a dependable infrastructure for the production and delivery of all kinds of energy fuels, investors may want to add Canadian energy stocks to their watchlists for investment opportunities.
