The Toronto Stock Exchange index is approaching historic highs, yet over the past 12 months, multiple Canadian oil and gas stocks have lagged behind the benchmark. For investors, the continued pullback has pushed valuations for these Canadian energy stocks below their intrinsic value, creating a window of opportunity to acquire quality oil and gas names at low prices in 2025.
This article briefly introduces two Canadian oil and gas companies worth watching and explores their latest developments and outlook.
Tourmaline Oil (TSX:TOU), one of Canada’s largest energy companies with a market capitalization of C$25 billion, maintained robust financial performance in the third quarter of 2025 despite weak natural gas prices, and surprised shareholders by declaring a special dividend. During this quarter, the company generated C$742 million in cash flow, or C$2.09 per diluted share, with net income of C$355 million, or C$1.00 per diluted share.
CEO Mike Rose noted that well productivity at the Deep Basin asset in 2024 reached its best level in the past five years, with IP90 rates for natural gas and condensate up 20% and 40%, respectively, compared to the previous four-year average. With these strong results, Tourmaline declared a special dividend of C$0.50 per share, taking its total annual dividend payout to C$3.25 per share—equivalent to a 5% dividend yield.
Despite unexpected downtime, Tourmaline’s average daily production in the third quarter reached 557,000 barrels of oil equivalent (BOE), up 11% from the same period last year. Looking ahead, the company expects fourth-quarter production between 600,000 and 620,000 BOE per day and aims to reach 630,000 to 640,000 BOE per day by year-end. Tourmaline’s 2025 guidance is pegged between 635,000 and 665,000 BOE, with a capital budget of C$2.6 to C$2.85 billion, subject to adjustments based on natural gas prices.
Tourmaline trades at a forward price-to-earnings ratio of 11.7, representing an 18% discount to the consensus target price.
Energy infrastructure company Enerflex (TSX:EFX) has seen its share price climb over 85% in the past year but still sits 13% below its 52-week high. Thanks to stable recurring revenue and effective debt reduction, Enerflex delivered strong third-quarter results and announced a 50% dividend hike.
In the latest earnings, Enerflex reported revenue of C$601 million, up from C$580 million a year earlier. Adjusted EBITDA rose from C$90 million to C$120 million. Net cash from operating activities amounted to C$98 million, including a C$35 million recovery of working capital.
CEO Marc Rossiter stated that Enerflex’s leverage ratio has successfully been lowered to the target range of 1.5x to 2.0x, emphasizing the company’s C$1.6 billion of long-term contracted energy infrastructure revenues as well as a C$1.3 billion order backlog for its engineering systems business. Moreover, the company lowered its 2024 capital expenditures from a previous range of C$90 million–C$110 million to C$80 million–C$90 million and has repaid C$268 million of debt since the start of 2023. It recently redeemed C$62.5 million worth of bonds set to mature in October 2027.
Enerflex’s stock currently trades at a forward price-to-earnings ratio of around 11, which is 25% below the consensus target price in the market.
