Trump’s Second Term Will Bring Changes to Energy Stocks, What Should Investors Know?

Trump Tariff Threat Creates a Buying Opportunity for Canadian Energy Stocks!
Published on: Jan 17, 2025
Author: Caroline Kong

Trump 2.0 should be a boon for the traditional energy sector. Heading into 2025, energy stocks continue to be one of the most popular areas of interest for Canadian investors. From oil sands to pipelines and renewable energy companies, energy stocks that are able to adapt to changing energy needs should hopefully deliver impressive results. For energy investors, what changes should they prepare to embrace in 2025?

Oil Producers

Canadian Natural Resources (TSX:CNQ) has just announced plans to increase production by 12%, targeting 1.51 million to 1.555 million barrels of oil equivalent per day. At the same time, the company has increased its capital budget to C$6.2 billion, reflecting confidence in oil’s enduring role in the global energy mix. Long story short, the growth strategy makes the stock a top choice for long-term investors looking for stable dividends and increased production.

Suncor Energy (TSX:SU) also plays a pivotal role in Canadian oil production. Under the leadership of CEO Rich Kruger, the company has placed a high priority on operational efficiency. Suncor expects to increase its production to between 810,000 and 840,000 barrels per day in 2025, which is a significant increase from the projected 2024 range of 770,000 to 810,000 barrels per day. Steady production growth, coupled with its long history of dividends, makes it an attractive option for income-focused investors.

Pipeline Operators

Canadian energy pipeline operators also have a bright outlook for 2025, and Enbridge (TSX:ENB) should be the first choice. The company forecasts adjusted earnings in 2025 to be between C$19.4 billion and C$20 billion. This is due to the company’s recent acquisitions in the natural gas distribution space, further solidifying its position in the energy infrastructure sector. This energy stock’s reliable dividend payout makes it a favourite among Canadian investors looking for a stable return on their investments.

Meanwhile, TC Energy (TSX:TRP) expects core profits to reach C$10.7 billion to C$10.9 billion over the next year. This energy stock is capitalising on growing demand for natural gas and electricity. Strong pipeline infrastructure, coupled with a global push for LNG exports, makes TC Energy a key player in the current energy transition. The dual focus on traditional and renewable energy sources makes this stock an irreplaceable investment option.

What Matters Should Investors Focus?

In 2025, the outlook for Canadian energy stocks appears bright, driven by global trends favouring the energy sector. However, Trump’s tariff policies could set off a chain reaction across the energy sector. For example, tariffs on imported steel or aluminium could push up the cost of pipeline construction and maintenance, squeezing profits for the companies involved. Meanwhile, retaliatory tariff measures in other countries could affect oil and gas exports, causing price volatility.

As energy companies respond to these potential changes, it’s a critical time for investors to assess how well their favoured sectors are coping with.

But there’s no denying that 2025 will be a year to look forward to for energy stocks on the TSX. Whether it’s Canadian Natural Resources, Suncor, Enbridge or TC Energy, these companies are driving growth and innovation. By keeping a close eye on industry trends and company earnings, investors can still make money by investing energy stocks.

 

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