Oil and gas prices have been on a tear since the beginning of 2021. In late 2021, I’d suggested that investors scoop up some of Canada’s top energy stocks, as the sector looked poised to keep this momentum going.

Yesterday, Russian president Vladimir Putin moved to officially acknowledge two separatist entities in eastern Ukraine. Recent reports suggest that he followed that with orders for Russian troops to bolster the positions of the separatists in the Donbass region. This has hurt potential peace talks and sent oil and gas prices soaring. Today, I want to look at three energy stocks that are worth snatching up in this environment.

This energy stock has soared over 110% from the previous year

Cenovus Energy (TSX:CVE)(NYSE:CVE) is a Calgary-based company that is engaged in the development, production, and marketing of crude oil, natural gas liquids, and natural gas in North America and the Asia Pacific region. Shares of this energy stock have climbed 21% in 2022 as of late-morning trading on February 22. The stock is up nearly 120% in the year-over-year period.

The company unveiled its fourth-quarter and full-year 2021 results on February 8. Cash from operating activities soared 774% year over year to $2.18 billion in the fourth quarter. Meanwhile, adjusted funds flow jumped 485% to $1.94 billion. Total revenues soared to $46.4 billion compared to revenues of $13.5 billion in 2020.

Shares of this energy stock are trading in favourable value territory compared to its industry peers. It offers a quarterly dividend of $0.035 per share. That represents a modest 0.7% yield.

Here’s another oil and gas beast to target today

Imperial Oil (TSX:IMO)(NYSE:IMO) is another Calgary-based company that explores for, produces, and sells crude oil and natural gas in Canada. This energy stock has jumped 18% so far this year. It shares are up 95% year over year.

Investors got to see Imperial Oil’s final batch of 2021 earnings on February 1, 2022. In Q4 2021, net income enjoyed a $1.95 billion year-over-year swing to $813 million over a $1.14 billion loss in the fourth quarter of 2020. For the full year, net income reached $2.47 billion over a $1.85 billion loss in the prior year. Imperial Oil achieved its highest annual production in over half a century.

This energy stock is also trading in solid value territory over its top competitors. It hiked its quarterly dividend by 26% to $0.34 per share. That represents a 2.4% yield.

Why Suncor is still my favourite energy stock to buy now

Suncor Energy (TSX:SU)(NYSE:SU) is the third energy stock I’d look to scoop up, as geopolitical tensions reach a boiling point. It is one of the top integrated energy companies in Canada. Shares of Suncor are up 11% in 2022. Meanwhile, the stock has climbed 42% in the year-over-year period.

In Q4 2021, Suncor posted adjusted funds from operations of $3.14 billion, or $2.17 per common share — up from $1.22 billion, or $0.80 per common share, in the previous year. Shares of Suncor still possess a favourable P/E ratio of 23 at the time of this writing. It offers a quarterly dividend of $0.42 per share, which represents a solid 4.5% yield.

The post 3 Energy Stocks to Buy as Oil Soars appeared first on The Motley Fool Canada.

More reading

• 4 Top Canadian Stocks to Buy in This Volatile Environment
• The 4 Best Dividend Stocks to Own in Your Retirement Portfolio
• 1 Fast-Food Chain Is a Better Dividend Growth Stock Than Suncor (TSX:SU)
• 25% of Canadians Fear Outliving Their Savings in Retirement
• I’m Buying These High-Yield Dividend Stocks Before March

Fool contributor Ambrose O’Callaghan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.