5 Best-performing Canadian Oil and Gas Stocks in 2026

1. Bengal Energy (TSX:BNG)

Year-to-date gain: 250 percent
Market cap: C$14.56 million
Share price: C$0.035

Bengal Energy is an oil and gas explorer focused on Australia. Currently, the company has four assets — Cuisinier, Barrolka, Tookoonooka and Katandra — all located onshore within Central Australia's Cooper Basin.

In mid-February, Bengal reported weaker production and revenue for its third fiscal quarter of 2026, reflecting softer realized prices and operational headwinds, even as cost controls helped limit downside pressure.

On March 24, Bengal penned a letter of intent with an Australian energy services firm to fund a production test at the Ramses 2 well in the Cooper Basin. The well, which has been shut-in since it was drilled in 2007, recovered an extrapolated 588 barrels per day (bbl/d) of high-quality, 37 degree API oil at the time.

Shares of the company reached a year-to-date high of C$0.075 on April 2, 2026.

Bengal Energy entered into a promissory note with Texada Capital Management for a C$1.15 million loan on April 6.

The proceeds will fund Bengal's share of rehabilitation cost bonding requirements tied to its Barta joint venture, which controls Cuisinier, as the joint venture operator can now share these costs with partners following recent regulatory changes in Queensland.

Later in the month, Bengal closed a C$1.52 million private placement.

2. Arrow Exploration (TSXV:AXL)

Year-to-date gain: 92.59 percent
Market cap: C$141.5 million
Share price: C$0.52

Arrow Exploration, through its wholly owned subsidiary Carrao Energy, operates in Colombia with a focus on developing its portfolio of Colombian oil assets. The company's strategy targets the expansion of oil production in key basins, including Llanos, Middle Magdalena Valley and Putumayo.

Arrow Exploration is the operator of most of its assets, according to the company, with high working interests. It has a 50 percent beneficial interest in the Tapir Block in the Llanos Basin, which includes four producing fields.

The company ended Q1 by bringing the Mateguafa 11 well online in Tapir's Matequafa field, followed by the Mateguafa HZ12 well in mid-April. It had already drilled two other development wells at the field in Q1.

In late May, Arrow Exploration reported Q1 2026 average production of 4,715 barrels of oil equivalent per day (boe/d), a 15 percent increase year-over-year, with oil and natural gas revenue rising 21 percent to US$23.5 million.

The Colombia-focused operator attributed the production increase to higher crude oil production at Mateguafa.

Post-period, Arrow drilled the Icaco-1 exploration well, reporting it encountered three oil-bearing sands, and spud the Icaco-2 appraisal well to delineate the pool.

Shares of Arrow rose to a year-to-date high of C$0.58 on June 3, days after the Q1 progress update.

Subsequently, the company spudded the Icaco-2 well on the Tapir Block in the Llanos Basin, reaching target depth on May 26. The well is currently producing 830/bbl/d gross from the Ubaque formation at a restricted rate.

3. Tenaz Energy (TSX:TNZ)

Year-to-date gain: 89.4 percent
Market cap: C$1.61 billion
Share price: C$50.55

Tenaz Energy is an explorer and producer focused on acquiring and developing oil and gas assets, with core operations spanning the Dutch North Sea and Alberta’s Leduc-Woodbend region.

The company has established itself as the largest natural gas producer in the Dutch offshore sector while pursuing growth through both acquisitions and organic development.

On March 11, the company released its 2025 results, detailing two major acquisitions it made last year that expanded its operations in the North Sea. The first was NAM Offshore, which it renamed Tenaz Energy Netherlands, and the second was the US$244 million purchase of Hansa Hydrocarbons, the owner of the GEMS project.

These deals added immediate output and exploration potential. Growth is further supported by early drilling success at the K07 block.

As noted in the release, Q4 production rose 32 percent quarter-on-quarter to average 15,556 boe/d, while full-year output surged 257 percent compared to 2024 at an average of 9,609 boe/d due to production from the acquisitions.

Tenaz shares moved to a year-to-date high of C$67.85 on March 19, following a broader rally in the oil market that sent benchmark crude prices higher.

In early May, Tenaz reported that Q1 2026 production averaged 16,183 boe/d, a small increase quarter-over-quarter, but a and nearly five times higher year-over-year, driven by the two major acquisitions completed last year.

Capital investment totaled US$92 million in Q1, and Tenaz has increased its 2026 capital plan to US$300 million, citing a large inventory of high-return organic projects.

4. New Stratus Energy (TSXV:NSE)

Year-to-date gain: 69.41 percent
Market cap: C$97.98 million
Share price: C$0.72

New Stratus Energy is an oil and gas exploration and production company undergoing a strategic shift to position itself as a Colombia- and Venezuela-focused energy company.

In 2025 and early 2026, New Stratus advanced efforts to reposition its portfolio towards the two countries, while exiting non-core assets in Mexico and Peru, and dropping its previous focus on Brazil. The company provided detailed updates on the moves in its 2025 annual report released May 6.

In Colombia, New Stratus entered into a binding memorandum of understanding for a joint venture with a local company to acquire and develop producing oil and gas blocks, with a definitive agreement expected by the end of May.

As for Venezuela, the company is seeking to re-establish its presence following the dissolution of its previous joint venture in late 2024 amid US sanctions enforcement. Management is pursuing negotiations to acquire interests in existing mixed-enterprise oil projects and is evaluating additional opportunities alongside industry and government stakeholders.

The company also completed its exit from the Soledad contract in Mexico, receiving C$7.3 million and a "liability waiver for all previous and future abandonment costs, as well as all future drilling obligations." Meanwhile, New Stratus has paused its pursuit of a new contract for Block 192 in Peru.

It was previously focused on operating in Brazil's Recôncavo Basin, where it holds interests in the REC-T-107 and REC-T-108 concessions. The company received agency approval to increase its ownership in the asset, according to the corporate update, but decided to no longer focus on the country.

Shares of New Stratus reached a year-to-date high of C$0.81 on June 1.

5. Obsidian Energy (TSX:OBE)

Year-to-date gain: 64.84 percent
Market cap: C$930.86 million
Share price: C$13.83

Obsidian Energy is an oil and gas producer with assets in Alberta, Canada, located in the Peace River, Willesden Green and Viking areas.

Obsidian Energy released its first quarter 2026 operational update April 13, highlighting well development targeting the Belly River and Cardium formations at Willesden Green's Open Creek area. At its Clearwater asset, Obsidian continued advancing enhanced recovery initiatives, commissioning the Dawson waterflood pilot and rig-releasing injector wells at both the Nampa and West Dawson projects.

The company also reported producing its highest-quality oil to date in the Peace River region from the West Dawson and Nampa pads.

Company shares rose to a year-to-date high of C$19.65 on May 4.

A few days later, Obsidian released its Q1 2026 results, reporting average first quarter of 28,733 boe/d, generating funds flow from operations of C$61 million. The company said its results were supported by development programs and high oil prices during the quarter.

Obsidian also renewed its normal course issuer bid and repurchased approximately 1.5 million common shares, which were subsequently cancelled. The share buyback program forms part of the company's broader capital allocation strategy.

On June 1, Obsidian increased its 2026 capital program to between C$300 million and C$325 million, approximately C$100 million higher than previously planned, citing strong operational performance and an improved commodity price outlook. The company said the expanded investment is expected to support approximately 15 percent production growth in 2027.

The following day, the company announced the acquisition of high-return Belly River light oil assets in the Wilson Creek area of Willesden Green. The transaction expands the company's existing light oil development platform in the Belly Creek formation and its position as the “largest Belly River producer.”