9 Largest Canadian Dividend Energy Stocks

Canadian Energy Stocks

Canada is renowned for the abundance of natural resources and the oil sector is definitely one of the primary sector driving the Canadian economy. If you look at the TSX 60, 13 of the 60 stocks are energy stocks ( 21.67%) and the largest representation followed by financials and materials with 10 each. Over 50% of the index is concentrated in the 3 primary sectors driving the Canadian economy.

If you invest in Canada, it’s important you understand the energy sector and what the company’s business is. Some of the industries are dependent on others.  See the industry breakdown below followed by the top Canadian energy stocks.

  • Oil & Gas – Drilling
  • Oil & Gas – E&P
  • Oil & Gas – Integrated
  • Oil & Gas – Midstream
  • Oil & Gas – Services
  • Oil & Gas – Refining & Marketing

One of my primary data points when researching a stock include the Chowder Rule now as it establishes the potential total return of the company in the short term for both the dividend and the stock appreciation. Find the right stock for your portfolio.


Enbridge

ENB - EnbridgeEnbridge Inc. is the largest energy infrastructure company in North America. It is Canada’s largest natural gas distributor engaging in the collection, transportation, processing and storage of oil and gas. Enbridge caters to 3.7 million customers in Ontario, Quebec, New Brunswick, and New York. It owns an extensive network of about 192,000 miles of natural gas and NGL pipelines across North America and the Gulf of Mexico. Its crude oil and liquids transportation systems are huge comprising of more than 17,000 miles of active pipelines. The company is known for its high quality liquids and natural gas infrastructure assets. In addition, Enbridge has 3.1 Bcf/d of processing capacity and 438 Bcf of net natural gas storage capacity. It also owns interests in nearly 3,000 MW of renewable generation capacity. Enbridge operates through five reporting segments - Liquids Pipelines (52% of 2018 earnings), Gas transmission and midstream (22%), Gas Distribution (17%), Green Power and Transmission (4%), and Energy Services (5%).

Investment Data

TC Energy

TRP - TransCanada PipelineTC Energy is a leading North American infrastructure company. It supplies more than 25% of natural gas consumed daily across North America. The company has a strong portfolio of diversified assets, storage facilities and power generation plants and operates one of North America’s largest natural gas pipelines networks extending to more than 57,500 miles. TC Energy operates three complementary energy infrastructure businesses across three major geographies in North America. By generation type, TC’s assets can be divided into nuclear, natural gas and wind. The USA, Canada and Mexico are its core geographies and the company has access to North America’s two most prolific natural gas supply basins. With more than 65 years of service, TC Energy is known for delivering energy in a safe and sustainable manner. Ownership of low-risk regulated cost-of-service businesses and long-term contracted energy infrastructure assets differentiate TC Energy from its peers.

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Canadian Natural Resources

CNQ - Canadian Natural ResourcesCanadian Natural Resources is a large natural gas and crude oil exploration and production company in Canada. The company operates a diversified portfolio of assets (comprising of mix of natural gas, light crude oil, heavy crude oil, bitumen and synthetic crude oil) in North America, the UK North Sea and Offshore Africa. Canadian Natural’s business can be broadly classified into - North America E&P, international, marketing & midstream. The company holds some of the best oil sands assets in North America, particularly thermal in situ properties, having significant growth potential. Canadian Natural completed its transition to a long life, low decline asset base in 2017, which ensures a growing base of sustainable cash flows especially in low commodity price environments.

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Suncor

SU - Suncor EnergySuncor Energy is one of the largest independent energy companies in the world engaging in oil sands operations, offshore oil and gas production, petroleum refining and marketing. It is the largest oil producer in Canada. The company has operations across the entire value chain, including resource extraction, upgrading, refining and marketing, and midstream logistics. In addition, Suncor is involved in energy trading and operates a renewable energy business. Suncor owns offshore assets in key strategic geographic locations like the U.K. North Sea, Canada’s east coast and Norway. The company operates four refineries, an ethanol plant, wind farms, and over 1700 retail sites in North America and owns 940 mbpd oil production, 550 mbpd upgrading, and 460 mbpd refining capacities. Suncor’s long-life, low-decline reserve base with a proven life of more than 30 years, sets it apart from peers.

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Pembina Pipeline

PPL - Pembina PipelinePembina Pipeline is a leading midstream and transportation service provider in North America. The company is known for providing safe and cost-effective transportation solutions since the last six decades. The company offers a wide range of midstream and marketing services to the energy sector. It owns an extensive network of pipelines that transport crude oil, natural gas and natural gas liquids produced primarily in western Canada. It also runs gathering and processing facilities and an oil and natural gas liquids infrastructure business.

Pembina owns a large asset base consisting of pipelines and facilities, which is difficult for newcomers to replicate. As a leading energy infrastructure company, Pembina serves multiple basins and markets throughout Canada and the US. The company has 19 gas processing facilities and 6 billion cubic feet per day of net gas processing capacity. Pembina owns and operates an 18,000 km pipelines with a total capacity of 3 million barrels of oil equivalent per day.

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Imperial Oil

Imperial (TSE:IMO) is Canada's largest refiner of petroleum products. Imperial refines raw hydrocarbons into about 650 petroleum products essential to consumers and businesses: gasoline, diesel, heating oil, natural gas, lubricants, and chemicals used to make plastics. It’s hard to imagine life without the products manufactured from hydrocarbons. They fuel our economies, heat our homes and make our lives easier and more enjoyable. Like you, Imperial is concerned about the effects of chemicals on health and the environment and we have integrated Responsible Care® into our business practices. Imperial offers products and services to consumers across Canada as well as in export markets.  In total, we manufacture and sell about a quarter of the petroleum products used every day by Canadians.  We are a leading marketer of fuels, lubricants, asphalts and specialty products.

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Cenovus Energy

CVE - Cenovus EnergyCenovus Energy is a large integrated oil and gas company based in Canada. The company owns oil sands projects in northern Alberta as well as natural gas and oil fields in Alberta and British Columbia. It also owns a 50% stake in two U.S. refineries. Cenovus’ portfolio of assets got a boost with the acquisition of most of ConocoPhillips’ operations in Western Canada in 2017. Cenovus Energy sells oil to industrial users, wholesalers and commodity purchasers, all around the world. An extensive network of pipelines, rail, and marine tankers transport the company's products. Cenovus is also developing new pipeline projects in Western Canada that will provide access to new buyers. A vast portfolio of oil sands assets and Deep Basin natural gas and liquids assets in Western Canada should support production growth. Premium asset quality, operating excellence, an integrated model, and a strong reputation are Cenovus’ key competitive strengths.

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Keyera Corp

KEY - Keyera CorpKeyera Corp. is one of the largest independent midstream energy companies with extensive interconnected assets across Canada. The company caters to the needs of oil and gas producers in the Western Canada Sedimentary Basin, and provides NGL gathering and processing, fractionation, storage, transportation, logistics and marketing services. Keyera’s core infrastructure is strategically located in key producing areas of Western Canada Sedimentary basin and Edmonton/ Fort Saskatchewan energy hub. The company also markets iso-octane, propane, butane, condensate and crude oil to customers in Canada and the United States. It operates through Gathering and Processing, Liquids Infrastructure and Marketing segments. Keyera has strong expertise in operating complex energy processing facilities and provides a full range of essential midstream services to its customers.

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Inter Pipeline Ltd

IPL - InterPipelineInter Pipeline is an integrated energy infrastructure company in Canada that engages in the transportation and storage of petroleum, and natural gas liquids processing. Inter Pipeline operates four business segments namely oil sands transportation (48% of 2018 earnings), NGL processing (34%), conventional oil pipelines (13%) and bulk liquid storage (5%). The company operates through an extensive network of pipeline systems spanning over 7,800 kilometers and transports over 1.4 million barrels per day. In addition, the company also owns petroleum and petrochemical storage terminals with a combined storage capacity of 37 million barrels across Europe. It operates one of the largest NGL businesses in Canada with a processing capacity of 3.5 bcf/d in 2018. Canada is its principal place of business accounting for 95% of its earnings while the remaining 5% is from Europe. Ownership of world-scale energy infrastructure assets in strategic locations, stable and diversified FFO are strong competitive advantages for Inter Pipeline.

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DISCLOSURE: Please note that I may have a position in one or many of the holdings listed. For a complete list of my holdings, please see my Dividend Portfolio.

DISCLAIMER: Please note that this blog post represents my opinion and not an advice/recommendation. I am not a financial adviser, I am not qualified to give financial advice. Before you buy any stocks/funds consult with a qualified financial planner. Make your investment decisions at your own risk – see my full disclaimer for more details.
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