Which Canadian Share is Best to Buy for 2025?

In this article, we will discuss which Canadian share is best to buy for 2025.

For investors seeking a Canadian stock with genuine upside in 2025, Whitecap Resources (TSX:WCP) is emerging as a compelling candidate. Often flying under the radar, this Calgary-based energy company has steadily built a reputation for disciplined operations, robust financials, and a shareholder-friendly capital strategy. As Canada’s energy sector regains momentum, Whitecap stands out with an attractive combination of growth potential, income generation, and operational excellence.

The Business at a Glance

Whitecap specializes in producing light oil and natural gas—traditional resources, but ones it extracts with exceptional efficiency. What makes Whitecap noteworthy isn’t just its resource base but the way it manages cash flow and capital allocation. In Q1 2025, the company reported a net income of $162.6 million—nearly triple its Q1 2024 result—demonstrating strong profitability even in a volatile commodity price environment. Cash flow from operations hit $446.3 million, a testament to its operational strength.

Production volumes also reflect the company’s upward trajectory. Whitecap averaged 179,051 barrels of oil equivalent per day during the first quarter, marking a 6% year-over-year increase. Much of this growth came from Alberta’s prolific Montney and Duvernay formations, which offer high-yield, low-cost production opportunities. Recent well performance in the Montney has exceeded expectations, further reinforcing management’s optimistic guidance for the year.

Financial Discipline and Strategic Focus

Whitecap differentiates itself with a conservative and balanced approach to growth. Rather than overspending on expansion, it prioritizes sustainable free cash flow usage. That includes paying down debt, returning capital to shareholders, and funding new development. By the end of Q1 2025, net debt had dropped to $986.9 million, down from roughly $1.5 billion the previous year. This prudent deleveraging strengthens the company’s balance sheet and enhances its ability to weather future downturns in oil prices.

A Rare Blend: Yield, Value, and Expansion

Income investors have good reason to consider Whitecap as well. The stock offers a monthly dividend of $0.0608 per share, translating to an annual payout of around $0.73 and an impressive yield of approximately 8.4%. With growing free cash flow and a healthier balance sheet, there’s potential for further dividend hikes in the future.

In addition, Whitecap made a transformative move with its recent merger with Veren, finalized earlier this year. This strategic acquisition significantly boosts Whitecap’s scale, making it one of Canada’s largest producers of light oil and condensate. Veren brings high-quality assets, particularly in the Duvernay region, and offers synergies through shared infrastructure and advanced drilling technologies. The integration is expected to drive further operational efficiencies and unlock new growth avenues.

Whitecap’s post-merger strategy remains focused on delivering high-margin, scalable production. Alongside dividends, the company has also initiated a normal course issuer bid, enabling it to buy back up to 5% of its shares—a clear signal that management sees the stock as undervalued and believes in its long-term value proposition.

The Bottom Line

By now, the readers would have got the answer to the question “Which Canadian Share is Best to Buy for 2025?” Whitecap Resources is executing exceptionally well across all fronts—production, profitability, capital discipline, and shareholder returns. Its strategic merger with Veren, growing exposure to top-tier oil plays, and attractive dividend yield make it a standout in Canada’s energy space. For investors looking for a mix of income, value, and growth in 2025 and beyond, Whitecap deserves a spot on the watchlist.