The Globe and Mail reports in its Wednesday edition that Canadian energy stocks have had a notable year, with the S&P/TSX Composite Energy Index up 37 per cent since January. In a Globe special, Daina Lawrence writes that even with those gains, investors betting on the Carney government's ambitious plans for new infrastructure. Jerome Hass and Andy MacLean, partners at Toronto's Lightwater Partners Inc., say stock prices aren't fully reflecting the earnings potential of Canadian oil producers at current commodity prices. Mr. MacLean says many producers appear to be valued on the assumption that oil will trade at roughly $65 (U.S.) to $70 (U.S.) a barrel. Mr. Hass says many Canadian producers remain financially attractive even at considerably lower oil prices. He adds that investors shouldn't overlook the smaller companies in the sector, such as oil producer Surge Energy, one of Lightwater's largest holdings. Mr. Hass points out that the company trades at less than half Suncor Energy's valuation relative to earnings. For his part, Mr. MacLean says Precision Drilling trades at roughly one-third of the valuation that a comparable industrial company outside the energy sector might command relative to earnings.