1. Suncor Energy Inc. (TSX:SU)
Leading the pack is Suncor Energy Inc., a key player in the Canadian energy sector. As a comprehensive energy company, Suncor develops petroleum resources and refines and markets them, and its aggressive expansion in 2024 proves its potential. Suncor primarily operates in North America, the North Sea, and offshore Eastern Canada. Despite the challenging market conditions, Suncor has proven resilient due to its integrated operations, reliable dividends, and strong sustainability practices. It also aims to reduce its total greenhouse gas emissions intensity by 30% by 2030, making it attractive to ESG investors.
2. Canadian Natural Resources Limited (TSX:CNQ)
Next on our list is Canadian Natural Resources Limited (CNQ). CNQ is one of Canada’s largest independent crude oil and natural gas producers. It has a diversified portfolio spread across natural gas, light crude oil, heavy crude oil, bitumen, and synthetic crude oil. In 2024, the company has seen significant gains due to increased demand and high oil prices. They’ve committed to ESG practices with a strong environmental footprint reduction strategy in place. Its competitive advantage is the company’s strong balance sheet, ample liquidity, and excellent credit ratings.
3. Enbridge Inc. (TSX:ENB)
A favorite amongst many investors, Enbridge is one of the leading energy generation, distribution, and transportation companies in North America. Though it dealt with several challenges related to pipeline approvals in recent years, Enbridge bounced back in 2024 with robust results. It has a broad asset base consisting of pipelines and wind farms. Its predictable cash flow is backed by its long-term contracts with high credit quality counterparts. In addition, the company has a solid plan for renewable energy investments, enhancing its appeal to green-focused investors.
4. Cenovus Energy Inc. (TSX:CVE)
Cenovus Energy continues to make its mark in 2024. This energy company is integrated into upstream and downstream oil & gas operations. It has shown robust performance due to its focus on increasing production capacity while maintaining cost efficiency. Cenovus’s large-scale oil sands projects, along with its downstream refining operations, put it in a unique position in the energy market. It is focussed on technology advances to increase resource recovery while minimizing environmental impact.
5. Tourmaline Oil Corp. (TSX:TOU)
Completing our list is Tourmaline Oil Corp, one of the largest Canadian-domiciled natural gas producers. The company operates in the Alberta Deep Basin and Northeast British Columbia’s Montney formations. In 2024, Tourmaline posted record production levels, increasing cash flow and boosting its stock performance. The company also exhibits impressive environmental integrity, having committed to significant methane gas emission reductions. Tourmaline maintains that its natural gas production directly combats climate change by providing a cleaner-burning substitute for coal in electricity generation.
It’s essential to note that while these oil and gas stocks have shown impressive potential in 2024, prudent investors should consider their financial goals, risk tolerance, and investing horizon before deciding if these stocks align with their portfolios. It’s also beneficial to consult with a financial advisor or conduct personal research to evaluate these opportunities thoroughly.
