Higher oil and natural gas prices, driven by tightening global supply conditions and heightened geopolitical risks, particularly in the Middle East, are adding to inflationary pressures across Canada. Although elevated energy costs are weighing on household purchasing power, they are creating a more favourable pricing environment for companies operating in the energy sector and supporting their stock.
Thanks to the solid demand and pricing environment, several TSX energy stocks have experienced notable share price appreciation. Meanwhile, the persistent supply-side uncertainty amid ongoing geopolitical conflicts in the Middle East and Europe could keep energy markets volatile and sustain upward pressure on oil and natural gas prices. The backdrop indicates that energy stocks could win big and retain their upward momentum.
Against this background, here are top TSX energy stocks to consider.
TSX energy stock #1: Canadian Natural Resources
Canadian Natural Resources (TSX: CNQ) has benefited from higher oil and gas prices, with its share price up about 74% over the past year. CNQ also benefited from strong production, which helped it deliver record second-quarter results. Its adjusted net earnings came in at approximately $4.6 billion, or $2.20 per share, while adjusted funds flow reached a record $6.9 billion, or $3.30 per share. With energy prices remaining supportive, the company could maintain this momentum in the coming quarters.
With higher pricing and volumes, CNQ is returning substantial cash to shareholders. During the quarter, it returned $2.4 billion to shareholders, including $1.3 billion in dividends and $1.1 billion in share buybacks. It also used $1.6 billion to reduce net debt.
The outlook also appears encouraging, as Canadian Natural has raised its 2026 production guidance for the second time this year. Higher production, favourable realized prices, and relatively low operating costs could support further growth in cash flow. This would give the company additional room to increase dividends, reduce debt, and repurchase shares.
For income investors, CNQ’s dividend record is another important attraction. The company has increased its annual dividend for 26 consecutive years. Its strong cash generation and strong production base provide support for future dividend growth.
Looking further ahead, Canadian Natural’s long-life reserves, low-decline asset base, and higher commodity prices augur well for growth.
TSX energy stock #2: Spartan Delta Corp.
Spartan Delta Corp. (TSX: SDE) is another top energy stock that could benefit from higher oil and gas prices. The company’s recent operational performance highlights the benefits of increased development activity, higher production volumes, and solid pricing. During the third quarter, Spartan implemented an active development program across its core operating areas, resulting in a 24% year-over-year increase in average production. Liquids accounted for 46% of total output, up from 39% in the same period last year, indicating a shift toward higher-value production.
Improved operational performance translated into substantial revenue growth. Oil and natural gas sales surged 145% year over year to $202.6 million, from $82.7 million in Q3 2025. This growth reflected the combined impact of increased production volumes and stronger realized commodity prices. Spartan’s average realized price climbed 98% to $41.21 per barrel of oil equivalent (BOE). Realized prices for crude oil, condensate, and natural gas increased by 45%, 35%, and 105%, respectively, significantly boosting the company’s revenue-generating capacity.
Looking ahead, Spartan’s decision to increase its 2026 capital expenditure program reflects management’s intention to capitalize on favourable commodity prices and sustain its operational growth trajectory into 2027. Higher production volumes and improved realized pricing could strengthen revenue and earnings, supporting its share price.
