The Canadian energy sector is firing on all cylinders, with the S&P/TSX Capped Energy Index up 43.2 per cent in the first four months of the year. The rally has been fuelled by a combination of Middle East supply restrictions and energy demand supported by a resilient North American economy.
While higher fuel prices are discouraging consumption, the U.S. Energy Information Administration said in its April 7 short-term energy outlook that it still expects 2026 global oil demand growth to average 0.6 million barrels a day.
Even if that demand outlook proves too optimistic, one consequence of the Iran war may be an embrace of crude oil inventory restocking. While large crude oil inventories were characterized as a glut in 2025, we expect storage will increasingly be viewed as security of supply.
Meanwhile, Canada is being recognized as offering security of oil and gas supply. On April 27, ARC Resources Ltd. announced it had received a takeover offer from Shell in a cash and share deal worth about $22-billion. I highlighted the Montney-focused ARC Resources here on March 23 as an energy name that had seen recent insider buying, most of it after investors reacted negatively to production news at its Attachie operations in British Columbia.
Insiders have responded to rising oil and gas share prices with some profit-taking, but that is to be expected. Selling levels are consistent with a sector experiencing strong momentum, and we have not reached a point where alarm bells are ringing that we may be near a long-term top. With that in mind, we look at three energy stocks that rank in the top 30 per cent of our INK Edge rankings based on valuations, insider buying and holdings, and price momentum.
The Attachie experience is a reminder that building incremental supply involves risk. PrairieSky Royalty Ltd. (PSK-T) avoids having to deal directly with such development challenges through its royalty model, which shifts most of the operating risk of developing assets to third parties. In the first quarter ended March 31, total royalty production averaged 26,293 boe/d, or barrels of oil equivalent per day, up 4 per cent from a year earlier. At current commodity pricing levels, PrairieSky expects growth in oil and NGL royalty production to continue. The company has declared a quarterly dividend of 26.5 cents per share, payable on July 15 to shareholders of record on June 30.
Encouragingly, on April 22, chief executive officer Andrew Phillips was a net buyer of 8,600 shares in the public market. He now holds a little more than one million shares of the royalty company.
Tenaz Energy Corp. (TNZ-T), with its North Sea natural gas assets, is positioned to help Europe meet its energy needs. In the fourth quarter of 2025, the company averaged production of 15,556 boe/d (90 per cent natural gas), up 32 per cent from the third quarter, while full-year production of 9,609 boe/d was 257 per cent higher than in 2024, reflecting contributions from two acquisitions. For all of 2025, funds flow from operations reached $120.4-million versus $24.5-million recorded in 2024.
On April 17, a senior officer acquired 2,000 shares at $59.09. Earlier in December, eight Tenaz insiders exercised a total of 1.2 million options and 1,700,700 warrants but only sold 869,545 shares in the public market at a price of $22.50. According to a company press release, shares were sold to fund applicable taxes and the exercise costs and were sold in a block at a reported one per cent discount to the market price. Generally, it can be a bullish signal when insiders exercise options and do not sell all their newly acquired shares into the public market.
North American Construction Group Ltd. (NOA-T) is an equipment and services contractor for civil infrastructure and mining. Investors reacted negatively to fourth quarter financial results, which included a $13-million cost overrun on its Fargo-Moorhead flood diversion project that pushed net income down 96 per cent from a year earlier. The stock fell 27.6 per cent on March 12, the day after the earnings release.
Insiders bought the dip. From March 16 to April 2, four directors bought a total of 7,800 common shares in the public market at an average price of $17.98. The insider buying coincides with an improving free cash flow picture: Full-year 2025 free cash flow was $61.2-million, up from $18.0-million in 2024, and the company is guiding for $110-million to $130-million in 2026. The guidance is supported by a proforma contractual backlog of $3.9-billion and a total bid pipeline of $12.6-billion.
Ted Dixon is CEO of INK Research which provides insider news and knowledge to investors.