If Oil Hits $100, These 3 Canadian Stocks Could Surge

If oil hits $100, there are a few things investors should consider. For instance, look for stocks with real torque, not just vague exposure. The best candidates tend to be producers with growing volumes, low operating costs, and projects that become much more profitable when crude jumps. A smaller name can move even faster than a major when oil runs, but only if the balance sheet can handle the ride. That mix of leverage, growth, and discipline is what makes a few Canadian energy stocks stand out right now.

IPCO

International Petroleum (TSX:IPCO) is an international producer with assets in Canada, Malaysia, and France, but the real excitement sits with its Blackrod project in Alberta. Over the last year, Blackrod Phase 1 moved ahead of schedule and on budget, with first steam injection achieved in the fourth quarter of 2025 and first oil still expected in the third quarter of 2026. IPC also added lands next to Blackrod, which boosted its contingent resource base, and it kept buying back shares.

The numbers show why oil bulls may like it. IPC produced 44,900 barrels of oil equivalent (boe/d) in 2025, near the top end of guidance, while operating cash flow reached US$259 million. Its reported free cash flow was negative as it kept pouring money into Blackrod, but before that project spending, it would have been positive US$103 million.

The oil stock recently traded with a market cap a little above $3.9 billion. The valuation looks rich on near-term earnings at 102 times earnings, but that starts to look more reasonable if Blackrod ramps well and oil prices stay hot. The risk is clear: this story depends on execution.

OBE

Obsidian Energy (TSX:OBE) is a Western Canadian producer with assets in Peace River, Willesden Green, and the Cardium, so it has direct exposure to stronger realized prices and improving activity. Over the last year, it leaned harder into heavy oil and water flood development, refinanced debt, and renewed its buyback program. In April, it also reaffirmed 2026 guidance, which suggests management still likes the setup.

Its 2025 results were solid enough to keep the thesis alive. Obsidian posted $272.1 million in funds flow from operations for the year and cut net debt to $268.2 million from $411.7 million. For 2026, it guided for average production of 27,900 to 29,900 boe/d and about $225 million in funds flow using much lower oil assumptions than a US$100 world.

That’s why this one has appeal. If oil really spikes, the upside could look much bigger than current expectations. Shares recently traded around a market cap near $1 billion and about 30 times earnings. That’s cheap enough to get attention, though the risk is that a smaller producer can stay volatile even when the fundamentals improve.

ALV

Alvopetro Energy (TSXV:ALV) is a producer operating in Brazil and focusing heavily on natural gas, yet its pricing has meaningful exposure to Brent-linked formulas. That means higher oil can still flow through to stronger pricing. Over the last year, it posted record sales volumes, secured additional firm gas sales, raised its dividend for the first quarter of 2026 to US$0.12 per share, and reported a 79% jump in 1P reserves. It’s a small company, but it has been moving with purpose.

Alvopetro’s April 2026 corporate presentation showed Q4 revenue of US$15.8 million, Q4 funds flow from operations (FFO) of US$10.6 million, Q1 2026 production of 3,124 boe/d, and enterprise value to annualized funds flow of 5.9 times. The oil stock recently traded around a market cap of $298 million and 9.7 times earnings. That’s a punchy setup for a name with reserve growth and dividend support. The catch is that it’s small, less liquid, and more niche than the others.

Bottom line

If oil hits $100, these three Canadian oil stocks could all get a serious lift, but for different reasons. IPC offers the big project kicker, Obsidian brings an attractive valuation and torque, and Alvopetro adds a smaller, higher-risk way to play stronger Brent-linked pricing. None is a sleepy pick, and that’s the point. If crude really takes off, sleepy probably won’t be enough.

The post If Oil Hits $100, These 3 Canadian Stocks Could Surge appeared first on The Motley Fool Canada.

Should you invest $1,000 in International Petroleum right now?

Before you buy stock in International Petroleum, consider this:

The Motley Fool Canada team has identified what they believe are the top 10 TSX stocks for 2026… and International Petroleum wasn’t one of them. The 10 stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 … if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have over $18,000!*

Now, it’s worth noting Stock Advisor Canada’s total average return is 94%* – a market-crushing outperformance compared to 85%* for the S&P/TSX Composite Index. Don’t miss out on our top 10 stocks, available when you join our mailing list!

Get the 10 stocks instantly #start_btn6 { background: #0e6d04 none repeat scroll 0 0; color: #fff; font-size: 1.2em; font-family: 'Montserrat', sans-serif; font-weight: 600; height: auto; line-height: 1.2em; margin: 30px 0; max-width: 350px; text-align: center; width: auto; box-shadow: 0 1px 0 rgba(0, 0, 0, 0.5), 0 1px 0 #fff inset, 0 0 2px rgba(0, 0, 0, 0.2); border-radius: 5px; } #start_btn6 a { color: #fff; display: block; padding: 20px; padding-right:1em; padding-left:1em; } #start_btn6 a:hover { background: #FFE300 none repeat scroll 0 0; color: #000; } @media (max-width: 480px) { div#start_btn6 { font-size:1.1em; max-width: 320px;} } margin_bottom_5 { margin-bottom:5px; } margin_top_10 { margin-top:10px; }

* Returns as of April 20th, 2026

More reading

• 2 Canadian Energy Stocks That Still Look Cheap Today
• 3 TSX Stocks I’d Snap Up on Any Dip Right Now
• 3 Canadian REITs Worth Holding in an Income Portfolio Through Any Market Condition
• 1 Canadian Company Set to Make a Fortune from the $650 Billion Data Centre Buildout
• 2 Canadian Stocks to Buy When Everyone’s Nervous

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alvopetro Energy. The Motley Fool recommends International Petroleum. The Motley Fool has a disclosure policy.