Canada was the world’s third-largest exporter of energy in 2021 and consistently is in the top 10 natural gas producers, according to the U.S. Energy Information Administration. It is not surprising that energy firms dominate the ranks of the biggest Canadian energy companies. Each of the top seven companies had a market capitalization above $20 billion.
Key Takeaways
- Canada is one of the world’s largest producers of oil and gas, ranked in the top 5 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.
- These companies in Canada are not only involved in the famous oil sands. Many have shifted to a focus on 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 $93.6 billion U.S. dollars ($116.5 billion Canadian) as of March 2022. Enbridge is the largest energy company in Canada, but it focuses on transporting rather than producing energy. Enbridge’s businesses include oil pipelines, natural gas distribution, and alternative energy. The company posts a healthy stock dividend of 5.85%.
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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 March 2022, Canadian Natural Resources had a market capitalization of $72.64 billion U.S. dollars ($90.6 billion Canadian). The company’s stock pays a 3.8% dividend.
3. TC Energy Corporation
TC Pipeline & Energy Corporation (NYSE: TRP, TSX: TRP.TO), which was 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 $56 billion U.S. dollars ($70.8 billion Canadian) as of March 2022. The company’s stock pays a 5% dividend.
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 2021, Suncor was Canada’s fourth-largest energy company with a market capitalization of $47 billion U.S. dollars ($58 billion Canadian). The stock pays a 4% annual dividend.
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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 $33 billion U.S. dollars ($41.4 billion Canadian) as of November 2021. Unlike the other top performers, CVE stock only pays a rather dismal 0.65% dividend.
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 about $31.7 billion U.S. dollars ($39.6 billion Canadian) and pays a consistent 2.25% dividend to shareholders.
7. Pembina Pipeline Corporation
Pembina Pipeline Corporation (NYSE: PBA, TSX: PPL.TO) had a market capitalization of about $20.6 billion U.S. dollars ($25.8 billion Canadian) in March 2022. The company has three divisions focusing on pipelines, processing, and new ventures. Pembina began operations in 1997, and its headquarters in Calgary supports a focus on Western Canada. The dividend paid is 5.35%.
What Is the Biggest Oil and Gas Company in Canada by Revenue?
The biggest oil and gas company in Canada by revenue is Enbridge. The company regularly posts revenues well above other Canadian energy companies.
What Are the Top 3 Energy Sources in Canada?
The top 3 energy sources in Canada are hydroelectricity, fossil fuels, and nuclear. Canada has incredibly diverse energy sources and consumption characteristics. The province of Nunavut, for example, is almost entirely dependent on oil, while Prince Edward Island is nearly 100% wind powered, and 90% of British Columbia’s electricity comes from almost 90% rivers and dams.
What Is the Best Renewable Energy Stock in Canada?
Many of the companies listed above have expanded into renewable energy sources, making massive investments in off-shore wind and hydroelectricity. Companies paying a healthy dividend while looking well-situated for growth are Algonquin Power and Utilities Corp. and TransAlta Renewables.
Which Province of Canada is the Largest Energy Consumer?
Alberta is Canada’s largest energy consumer per capita, while Quebec is the largest total energy consumer.
Source: https://www.investopedia.com/articles/markets/091115/7-biggest-canadian-energy-companies.asp?utm_campaign=quote-yahoo&utm_source=yahoo&utm_medium=referral&yptr=yahoo