Most Canadian vitality shares have entered 2026 with stable momentum. Oil demand continues to be holding up properly, and vitality corporations have change into way more disciplined with how they spend cash. Many Canadian producers are actually producing sturdy free money movement, even when oil costs aren’t at peak ranges.
If you’re seeking to place your portfolio for the yr forward, two TSX-listed vitality shares presently look engaging for various causes. On the one hand, Suncor Vitality (TSX: SU) provides dimension, stability, and rising returns to shareholders. Worldwide Petroleum (TSX:IPCO), however, provides a progress story with a significant mission about to return on-line. Let’s take a better look.
Suncor Vitality inventory
As considered one of Canada’s largest built-in vitality corporations, Suncor Vitality produces oil from the oil sands and offshore property, operates refineries in Canada and the U.S., and runs the Petro-Canada retail community. When oil costs swing, Suncor’s refining and retail companies can assist offset a number of the strain. This makes the corporate extra resilient throughout business cycles.
After rallying by 31% over the past 12 months, SU inventory presently trades round $74 per share and has a market cap of $88 billion. At this worth, it additionally provides a 3.2% dividend yield, supported by sturdy and constant free money movement.
Operationally, 2025 was a report yr for Suncor Vitality. Within the fourth quarter, the corporate produced 909,000 barrels per day, up from 875,000 barrels per day a yr earlier. In the meantime, its refining throughput additionally hit a report 504,000 barrels per day, with refinery utilization reaching 108%.
Just lately, its steadiness sheet has additionally improved. Extra importantly, Suncor has dedicated to returning 100% of extra funds to shareholders and has elevated its month-to-month share buyback tempo to $275 million in 2026.
With report manufacturing, diversified operations, and a transparent plan to return money to traders, Suncor may proceed to ship disciplined progress in 2026 and past.
Worldwide Petroleum inventory
Not like Suncor, Worldwide Petroleum is extra about progress and mission execution. The corporate operates oil and gasoline property in Canada, Malaysia, and France. Following a 62% rally within the final yr, IPCO inventory now trades at $29.88 per share, giving it a market cap of $3.4 billion. As an alternative of specializing in dividendsIPC has prioritized share buybacks, cancelling tens of millions of shares in recent times to spice up per-share worth.
In 2025, IPC delivered a median web manufacturing of 44,900 barrels of oil equal per day, on the excessive finish of its steerage. For the total yr, IPC generated US$259 million in working money movement. Nonetheless, its free money movement was unfavorable US$153 million, primarily due to heavy capital spending on its main Blackrod Part 1 mission.
Notably, Blackrod is anticipated to be the important thing long-term driver for Worldwide Petroleum. The corporate achieved first steam injection in December, and first oil from the mission is anticipated within the third quarter of 2026, sooner than initially deliberate.
Worldwide Petroleum expects US$1 billion to US$2 billion in cumulative free money movement from 2026 to 2030, assuming Brent crude oil costs stay between US$65 and US$85 per barrel. As Blackrod ramps up, 2026 may very well be a turning level for this vitality inventory’s money movement profile and assist its share worth soar additional.