Going into 2023, TSX energy stocks appear to be in a very strong position. Many energy stocks are not only inexpensive, but they are also flush with surplus funds.

Many of these stocks could profit from high pricing and sustained demand, given the current global energy crisis. Here are three of the best TSX energy stocks to buy now if you’re searching for some winners to invest in for December.

A large-cap TSX Energy Stocks

Canadian Natural Resources (TSX:CNQ) should be at the top of your list if you’re looking for an oil stock to stash away and forget about. It is not just Canada’s largest energy producer, with over 1.3 million barrels of oil equivalent (BOE) in production, but also one of the most lucrative.

In 2022, CNQ promptly paid down approximately $9 billion of debt, leaving them with a very strong balance sheet. As a result, it is prepared to return at least 50% of its excess cash to shareholders in 2022. In 2022, it increased the dividend twice and paid a special dividend of $1.50 per share. Right now, it has a 4.2% dividend yield.

Although CNQ is not the most affordable energy stock, it is one of the best and most reliable operators. Purchasing best-in-class stocks like CNQ frequently pays off if you have a longer investment horizon.

A mid-cap TSX Energy Stocks

ARC Resources (TSX:ARX), an appealing stock in the mid-cap energy sector, has a market cap of $12 billion. Each day, it generates about 340,000 BOE of natural gas, condensate, and oil. With long-term reserves, ARC has excellent assets. It also has a balance sheet that is quite cautious.

Although ARC is not a particularly eye-catching energy stock, it has produced a solid 66% return in 2022. Despite this, it still trades at a very low price-to-earnings ratio (P/E) of 5.6.

ARC has been benefiting from this discount by repurchasing a tonne of stock. It has purchased back 13% of its outstanding shares since September 2021. Additionally, it has twice raised the dividend this year. Currently, it pays a 3% dividend yield.

A small-cap oil stock

The market capitalization of Tamarack Valley Resources (TSX:TVE) is $2.7 billion. This stock has a somewhat higher risk but probably a better reward. Each day, it produces more over 43,000 BOE. This year, the stock has increased by 28%. There are reasons to be optimistic even though it has underperformed other energy competitors.

With a P/E of 4.8 and a price-to-free cash flow ratio of under 5, it is quite affordable, to begin with. It trades with a free cash flow yield of around 30%. It offers a nice monthly dividend payment of 2.95%. This year, it has increased the base dividend twice.

Secondly, some of Canada’s most productive and efficient regions are served by this energy stock. It just completed a reasonably priced acquisition, which delayed its debt-reduction goals in some way. However, it creates a number of chances for it to expand its product line.

This company should be able to quickly pay down debt and continue reinvesting sizable sums of money back to shareholders if it maintains its composure. Even though it might take some time, investors in this energy stock could see significant rewards in 2023.