Top Canadian Oil Stocks

Enbridge Inc	Exchange	TSX, NYSE
	Indices	S&P/TSX Composite, S&P/TSX 60
	Ticker Symbol/Stock Price	ENB/$59.82
	Main business	Storage and transportation of oil and natural gas
	Forward dividend yield	6.8%
	Trailing dividend yield	6.7%
	Trailing annual revenue	$43.5 B
	Price/Sales	2.6
Stock Price as of 20 November 2024, rest of table as of 20 September 2024.

Core Operations

Enbridge is one of North America's largest energy infrastructure companies, primarily focused on the transportation and distribution of crude oil, natural gas, and renewable energy. Its operations are divided into four segments:

Liquid Pipelines are Enbridge's most significant revenue generator, as they transport a substantial portion of North America's crude oil.

Enbridge has natural gas pipelines, processing plants, and storage facilities.

Enbridge manages the distribution of natural gas to millions of customers, particularly in Canada.

Enbridge is also expanding into renewable energy, including wind, solar, and geothermal projects.

Cash Flow

Due to its regulated utility-like operations, Enbridge generates stable and predictable cash flows, which appeal to income-focused investors.

Dividend

Enbridge is known for its attractive dividend yield and history of consistently increasing dividends, making it a popular choice for income investors.

Growth Prospects

Enbridge continually invests in new pipeline and infrastructure projects, which are crucial for future growth. Projects like Line 3 Replacement and the expansion of the Mainline System are key to the company’s long-term strategy. At the same time, Enbridge’s efforts to diversify into renewable energy are crucial for its future as the global energy landscape shifts towards cleaner sources.

Summary

Enbridge stock is the fourth largest component in the S&P/TSX Composite index, with a weight of 3.5% as of mid-August 2024. Enbridge is headquartered in Calgary, Alberta. It owns and operates an extensive network of pipelines throughout Canada and the US, transporting crude oil, natural gas and natural gas liquids.

Enbridge's crude oil pipeline extends over 27,500 kilometres, while its natural gas pipeline extends over 38,300 kilometres. Enbridge aims to become a net zero emitter of greenhouse gas emissions by 2050 and has built several renewable energy projects to achieve that aim. But even if Enbridge reduces its emissions to zero, the nature of its business empowers others to emit greenhouse gases.

Interprovincial Pipeline Company (IPL) was incorporated by Imperial Oil in 1949, shortly after the discovery of oil in Alberta. In 1953, IPL, whose pipeline extended from Alberta to Saskatchewan to Manitoba to Wisconsin and finally to New York state, was listed on the Toronto and Montreal stock exchanges. In 1986, IPL gained control of Home Oil, and in 1988 its name was changed to Interhome Energy Link.

In 1991, Interhome Energy Link changed its name to Interprovincial Pipeline Inc. In 1992, Interprovincial Pipeline System Inc. acquired Interprovincial Pipeline Inc and, after diversification into the gas distribution business, changed its name to IPL Energy Inc. In 1998, IPL Energy became Enbridge Inc; the new name is a portmanteau of energy and bridge.

August 2021, Enbridge Line 3 Replacement Oil Pipeline construction site in Minnesota forest. Excavators and bulldozers are covering the installed pipe. Enbridge built a new line 3 to retire its old line 3, which is corroded and leaked many times over its history.

In 2006 the Enbridge Northern Gateway Pipelines project from the Athabasca basin to Kitimat, British Columbia, was announced. This project envisioned twin pipeline to import condensate from the seaborn oil market and export diluted bitumen to the seaborn market. It was approved in 2014 and subsequently rejected in 2016 both by Canadian government. The Alberta Clippers Pipeline project from Hardisty, Alberta, to Superior, Wisconsin, was announced in 2006 and became operational in 2010. In 2009, Enbridge bought the Sarnia Photovoltaic Power Plant and expanded it to 80 MW.

Enbridge merged with Spectra Energy in 2017. Spectra Energy, a spin-off from Duke Energy, was a major gas pipeline owner and operator in the US. Enbridge is very actively expanding and optimizing the use of its pipeline network. Enbridge delivers around 5.8 million barrels of crude oil and liquids through its pipeline network.

Canadian Natural Resources Limited	Exchange	TSX
	Indices	S&P/TSX Composite, S&P/TSX 60
	Ticker Symbol/Stock Price	CNQ/$47.21
	Main business	Extraction of oil and natural gas
	Forward dividend yield	4.5%
	Trailing dividend yield	4.5%
	Trailing annual revenue	$42.5 B
	Price/Sales	2.3
Stock Price as of 20 November 2024, rest of table as of 20 September 2024.

Canadian Natural Resources Limited (CNRL) is the 5th largest component in the S&P/TSX Composite index, with a weight of 3.3% as of mid-August, 2024.

CNRL is Canada's largest independent producer of natural gas and heavy oil, with some offshore operations in the UK. CNRL owns and operates Horizon Oil Sands and 70% of the Athabasca Oil Sands Projects (AOSP), both north of Fort McMurray, Alberta. CNRL also owns half of the North West Redwater Partnership.

Horizon Oil Sands is the company's largest operation, where oil sands are surface mined, their bitumen extracted and subsequently upgraded to synthetic crude oil.

AEX Minerals Corporation was established in 1973 and changed its name to Canadian Natural Resources Limited in 1975. In 2000, the company acquired Ranger Oil for $1.08 B. Two years later, CNRL bought Rio Alto for $2.4 B. In 2004, the company acquired Petrovera Resources, a joint venture between Encana and ConocoPhillips. Two years later, CNRL paid US$4.1 B for the Canadian operations of Anadarko Petroleum.

Horizon oil sands project. On the top, we see the industrial installation, which extracts bitumen from oil sands. You see the areas where oil sands are surface mined on the bottom and left of the picture.

In 2014, conventional assets of Devon Energy in Canada were acquired by CNRL for $3.125 B. In 2017, the company acquired the oil sands assets of Royal Dutch Shell for $5.3 B and 97.6 million shares. Most prominent among these assets was a 70% interest in the Athabasca Oil Sands Project.

In 2018, CNRL bought the idled Joslyn oil sands project from Total S.A. In the same year, the company bought Laricina Energy for $46 million. This acquisition adds more than 5 billion barrels of recoverable bitumen to CNRL resources. In 2019, CNRL acquired the remaining Canadian assets of Devon Energy.

On October 7, 2024, CNRL announced a deal to acquire Chevron’s assets in Alberta for US$6.5 billion.

TC Energy Corporation	Exchange	TSX
	Indices	S&P/TSX Composite, S&P/TSX 60
	Ticker Symbol/Stock Price	TRP/$68.79
	Main business	Transporting natural gas and oil through pipeline
	Forward dividend yield	6.1%
	Trailing dividend yield	6%
	Trailing annual revenue	$16.5 B
	Price/Sales	3.9
Stock Price as of 20 November 2024, rest of table as of 20 September 2024.

TC Energy Corporation is headquartered in TC Energy Tower in Calgary, Alberta. TC has three main business units:

1. Natural Gas Pipelines,
2. Liquids Pipelines, and
3. Energy (electricity production).

TC has 93,000 km of gas pipeline, transporting a quarter of North America's gas demand. It has 535 billion cubic feet (BCF) of natural gas storage. TC also has 5,000 km of oil pipeline shipping 600k bbl/day of crude oil. The energy division wholly or partially owns 11 power plants with a total capacity of 6,600 megawatts.

The power plants include nuclear, natural gas and renewable power plants. TC’s US headquarters are in the TC Energy Center building in Houston, Texas. TC Energy is also the largest shareholder in TC PipeLines.

This map taken from Canada’s Energy Regulator (CER) shows the path of the TransCanada pipeline. TransCanada is the most important gas pipeline in Canada’s energy history. It brought cheap energy to the main Canadian population centers.

Trans Canada Pipe Lines Limited was incorporated by parliament in 1951. The company's purpose was to supply the main Canadian population centres with natural gas produced in Western Canada. In 1998, NOVA Corporation’s pipeline business was merged with TransCanada Pipelines to create North America's 4th largest energy services corporation.

In 2016, TransCanada paid US$13 B for acquiring Columbia Pipeline Group (CPG) from American utility company NiSource. CPG acquisition handed Trans Canada the business of transferring the gas produced in Marcellus and Utica shale formations.

In 2019, TransCanada Corporation changed its name to TC Energy Corporation to reflect that its portfolio is not limited to pipelines and includes power generation and energy storage operations as well.

Suncor Energy Inc	Exchange	TSX, NYSE
	Indices	S&P/TSX Composite, S&P/TSX 60
	Ticker Symbol/Stock Price	SU/$57.10
	Main business	Integrated Oil & Gas Company
	Forward dividend yield	4.3%
	Trailing dividend yield	4.3%
	Trailing annual revenue	$54.8 B
	Price/Sales	1.2
Stock Price as of 20 November 2024, rest of table as of 20 September 2024.

Suncor Energy is an integrated oil and gas company. Sun Company of Canada was founded in Montreal in 1919 as a subsidiary of Sun Oil. In 1979, Sun Oil merged its Canadian refining and retail interest, Great Canadian Oil Sands and its conventional oil and gas interests in Canada. The resulting company was named Suncor. Great Canadian Oil Sands is the first commercial plant producing crude oil from Athabasca oil sands since 1967.

The government of Ontario bought a quarter of Suncor in 1981 and divested it in 1993. In 1995, Sun Oil shed its interest in Suncor while Suncor retained the Sunoco retail brand in Canada. In 2009, Suncor acquired PetroCanada to become Canada's second-largest public company.

In 2016, Suncor acquired Canadian Oil Sands for $6.6 B. This acquisition increased Suncor’s interest in the Syncrude project from 12% to 49%. Later Suncor bought Murphy Oil’s five percent interest in Syncrude for $937 million. In 2021, Suncor took over the operation of the Syncrude Joint Venture to improve its performance while having a 59% stake.

Suncor’s oil sands upgrading plant near Fort McMurray, Alberta.

Suncor produces oil and natural gas in Western Canada, Colorado and Eastern Canada. It also has oil and gas projects in the North Sea, Libya, Syria and Trinidad & Tobago. Suncor operates a 135,000 bbl/day Strathcona refinery in Edmonton, an 85,000 bbl/day refinery in Sarnia, a 137,000 bbl/day refinery in Montreal, and a 98,000 bbl/day refinery in Commerce City, Colorado. Suncor is also one of the largest Canadian retailers of Petroleum products.

Cenovus Energy Inc.	Exchange	TSX, NYSE
	Indices	S&P/TSX Composite, S&P/TSX 60
	Ticker Symbol/Stock Price	CVE/$22.62
	Main business	Integrated Oil & Gas Company
	Forward dividend yield	3.1%
	Trailing dividend yield	2.7%
	Trailing annual revenue	$59.6 B
	Price/Sales	0.7
Stock Price as of 20 November 2024, rest of table as of 20 September 2024.

In 2009, Encana Corporation, the largest Canadian energy company, split itself into two companies, Cenovus Energy and Ovintiv. Cenovus got the oil sands assets. In 2017, Cenovus Energy Inc. acquired most assets of ConocoPhillips in Alberta and British Columbia. Most important among these assets was a 50% stake in the Foster Creek Christina Lake (FCCL) oil sands project.

In 2020-21 Cenovus acquired Husky Energy for $3.9 B in stock. This transaction made Cenovus the third largest Canadian oil and gas producer and the second largest Canadian refiner.

Foster Creek (northeast of Edmonton), Christina Lake (southeast of Fort McMurray), Sunrise (69k bbl/day, northeast of Fort McMurray), and Lloydminster Thermal (in Saskatchewan) are Cenovus's oil sands-producing assets. All these projects use steam-assisted gravity drainage (SAGD). Cenovus recently sold the Tucker oil sands (30k bbl/day) project to Strathcona Resources for $800 million and bought 50% of the Sunrise oil sands project from BP.

Cenovus produces natural gas and liquids from the Deep Basin in northwestern Alberta and northeastern British Columbia. Cenovus owns the Lima refinery in Lima, Ohio, the Superior Refinery in Superior, Wisconsin and Lloydminster refinery and upgrader in Lloydminster, Alberta.

Cenovus owns 49% of the 173,000 bbl/day Wood River Refinery in Illinois, and Borger refinery in Texas. Phillips 66 co-owns and operates these two refineries. Cenovus owns the 160,000 bbl/day Toledo refinery in Oregon, Ohio. It also holds the Bruderheim Energy Terminal, a crude by rail loading facility near Edmonton, Alberta.

Imperial Oil Limited	Exchange	TSX, NYSE MKT
	Indices	S&P/TSX Composite, S&P/TSX 60
	Ticker Symbol/Stock Price	IMO/$106.33
	Main business	Integrated Oil & Gas Company
	Forward dividend yield	3.1%
	Trailing dividend yield	2.7%
	Trailing annual revenue	$59.6 B
	Price/Sales	0.7
Stock Price as of 20 November 2024, rest of table as of 20 September 2024.

Imperial Oil Limited is one of Canada’s largest integrated oil companies. 70% of Imperial Oil belongs to the American oil giant ExxonMobil. In addition to producing crude oil, diluted bitumen and natural gas, Imperial Oil is a major refiner and petrochemical producer. Imperial Oil also engages in supply and retail operations, including supply of Esso-brand service stations.

Imperial owns a quarter of the Syncrude project and has an oil sands mining joint venture with ExxonMobil called Kearl Oil Sands. Imperial also owns the Norman Wells oil field in the Northwest Territories.

Imperial Oil was founded in 1880 when 12 Canadian refiners combined their businesses. Over its first 15 years, Imperial had a tough time competing with cheaper and higher quality products exported by Standard Oil from the US to Canada. As a result, Imperial Oil was sold to Standard Oil and became a subsidiary of Standard Oil.

In 1911, the US Supreme Court ordered Standard Oil to break itself into 34 companies. All foreign subsidiaries of Standard Oil, including Canadian Imperial Oil, became part of Jersey Standard.

In 1946-7, Imperial Oil discovered and started drilling the Leduc Woodbend Devonian oil reef. In 1973, Imperial’s parent company changed its name to Exxon. In 1989, Imperial Oil acquired the Canadian Operations of Texaco. In 1999, Exxon and Mobil merged and formed ExxonMobil.

Imperial had acquired retail operations through its acquisition of Texaco Canada Incorporated. It has sold all its gas stations but supplies more than 2000 gas stations all over Canada. It licenses Esso and Mobil names for service stations.

Pembina Pipeline Corporation	Exchange	TSX, NYSE
	Indices	S&P/TSX Composite, S&P/TSX 60
	Ticker Symbol/Stock Price	PPL, PBA/$59.37
	Main business	Transporting oil and natural gas
	Forward dividend yield	5%
	Trailing dividend yield	4.9%
	Trailing annual revenue	$8.2 B
	Price/Sales	3.2
Stock Price as of 20 November 2024, rest of table as of 20 September 2024.

Pembina was a private company for 37 years. In 1997, it was publicly listed through an IPO as a trust on the Toronto Stock Exchange, Pembina Pipeline Income Fund. In 2010, it became a corporation, Pembina Pipeline Corporation.

The Pembina pipeline was built to bring oil from the Pembina oil field to Edmonton. Pembina Pipeline Ltd acquired Peace Pipe Line Ltd in 1991. Five years later, it acquired half of the Bonnie Glen System, which is a 250 km network serving Alberta oil fields.

In 2000, Pembina bought Federated Pipelines Ltd for $340 million. In 2001, Pembina sold a salt cavern in Hardisty to Canadian Crude Separators. In the same year, Pembina took over Alberta Oil Sands Pipeline Ltd for $225 million. This transaction gave Pembina the main Syncrude pipeline.

In 2009, it acquired the Cutbank Complex from Talisman for $300 million. In 2012, Pembina purchased Provident Energy for $3.1 B in stock. In 2017, Pembina purchased natural gas transporter Veresen for $9.7 B. In 2019, Pembina bought Kinder Morgan Canada Limited, and a portion of the Cochin pipeline for $4.35 B.

Pembina has three segments:

1. Conventional oil transportation,
2. Oil sands and heavy oil transportation,
3. Storage, logistics and marketing.

Tourmaline Oil Corp	Exchange	TSX
	Indices	S&P/TSX Composite
	Ticker Symbol/Stock Price	TOU/$65.48
	Main business	Extraction of Natural Gas
	Forward dividend yield	2.4%
	Trailing dividend yield	2.1%
	Trailing annual revenue	$5.9 B
	Price/Sales	3.5
Stock Price as of 20 November 2024, rest of table as of 20 September 2024.

Tourmaline Oil is an upstream oil and gas producer headquartered in Calgary, Alberta. Tourmaline is the largest Canadian natural gas producer.

Micheal Rose founded Berkley Petroleum in 1993 and sold it to Anadarko Petroleum for $1.5 B in 2001. He founded Duvernay Oil in 2001 and sold it to Shell Canada in 2008 for $5.9 B. Tourmaline was founded by Rose and his team in 2008 with an initial capital of $253 million. Tourmaline raised $228 million by going public in 2010.

Tourmaline grows by buying small producers and mineral rights and also by signing farm-out agreements. A farm-out agreement allows an oil company to gain an interest in a resource base by performing services, often drilling wells.

Tourmaline is mainly concentrated in the Alberta Basin, Montney Formation, and Peace River oil sands. In 2012, Tourmaline acquired Huron Energy Corp for $258 million and APL Oil & Gas for $84 million.

In 2014, Tourmaline purchased Deep Basin assets from Santonia Energy for $189 million. In the same year, the company sold a quarter of its Peace River assets to Canadian Non-Operated Resources for half a million dollars.

In 2016 Tourmaline bought $1.04 B worth of Shell-Canada non-core assets in Gundy and Deep Basin. Later, Tourmaline spun off Topaz Oil to private investors. In 2020, Tourmaline acquired Modern Resources and Jupiter Resources, respectively, for $144 million and $626 million.

Modern Resources brought assets in Deep Basin and a gas processing plant, while Jupiter Resources brought assets in the Deep Basin and partial ownership of two natural gas processing plants.

In 2021, Black Swan Energy and Saguaro Resources, both with assets in Montney Formation, were purchased for $869 million and $205 million, respectively. Tourmaline has an agreement with Cheniere Energy to ship gas for liquefaction at Cheniere’s Texas liquefaction plant.

When It comes to upstream oil producers, American producers often have a significant advantage over their Canadian counterparts. As production in the US is usually very close to refineries, American producers often receive far better prices than Canadian producers.

Over the past two decades, Canadian producers have managed to substitute much of the heavy oil from Venezuela, Mexico and other oil-producing countries. But this has been done by giving significant discounts.