Top Energy Stocks to Invest in for 2026

Most Canadian energy stocks have entered 2026 with solid momentum. Oil demand is still holding up well, and energy companies have become much more disciplined with how they spend money. Many Canadian producers are now generating strong free cash flow, even when oil prices are not at peak levels.

If you are looking to position your portfolio for the year ahead, two TSX-listed energy stocks currently look attractive for different reasons. On the one hand, Suncor Energy (TSX:SU) offers size, stability, and growing returns to shareholders. International Petroleum (TSX:IPCO), on the other hand, offers a growth story with a major project about to come online. Let’s take a closer look.

Suncor Energy stock

As one of Canada’s largest integrated energy companies, Suncor Energy produces oil from the oil sands and offshore assets, operates refineries in Canada and the U.S., and runs the Petro-Canada retail network. When oil prices swing, Suncor’s refining and retail businesses can help offset some of the pressure. This makes the company more resilient during industry cycles.

After rallying by 31% over the last 12 months, SU stock currently trades around $74 per share and has a market cap of $88 billion. At this price, it also offers a 3.2% dividend yield, supported by strong and consistent free cash flow.

Operationally, 2025 was a record year for Suncor Energy. In the fourth quarter, the company produced 909,000 barrels per day, up from 875,000 barrels per day a year earlier. Meanwhile, its refining throughput also hit a record 504,000 barrels per day, with refinery utilization reaching 108%.

Recently, its balance sheet has also improved. More importantly, Suncor has committed to returning 100% of excess funds to shareholders and has increased its monthly share buyback pace to $275 million in 2026.

With record production, diversified operations, and a clear plan to return cash to investors, Suncor could continue to deliver disciplined growth in 2026 and beyond.

International Petroleum stock

Unlike Suncor, International Petroleum is more about growth and project execution. The company operates oil and gas assets in Canada, Malaysia, and France. Following a 62% rally in the last year, IPCO stock now trades at $29.88 per share, giving it a market cap of $3.4 billion. Instead of focusing on dividends, IPC has prioritized share buybacks, cancelling millions of shares in recent years to boost per-share value.

In 2025, IPC delivered an average net production of 44,900 barrels of oil equivalent per day, at the high end of its guidance. For the full year, IPC generated US$259 million in operating cash flow. However, its free cash flow was negative US$153 million, mainly because of heavy capital spending on its major Blackrod Phase 1 project.

Notably, Blackrod is expected to be the key long-term driver for International Petroleum. The company achieved first steam injection in December, and first oil from the project is expected in the third quarter of 2026, earlier than originally planned.

International Petroleum expects US$1 billion to US$2 billion in cumulative free cash flow from 2026 to 2030, assuming Brent crude oil prices remain between US$65 and US$85 per barrel. As Blackrod ramps up, 2026 could be a turning point for this energy stock’s cash flow profile and help its share price soar further.

The post Top Energy Stocks to Invest in for 2026 appeared first on The Motley Fool Canada.

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* Returns as of January 15th, 2026

More reading

• Top Canadian Stocks to Buy With $10,000 in 2026
• The Canadian Companies Thriving Despite (or Because of) Trade Tensions
• A Canadian Stock Poised for a Massive Comeback in 2026
• How to Pick the Best 5%+ Dividends in the Canadian Energy Sector
• 1 Bright Canadian Stock Ready to Surge in 2026 and Beyond

Fool contributor Jitendra Parashar has no position in any of the stocks mentioned. The Motley Fool recommends International Petroleum. The Motley Fool has a disclosure policy.