In this article, we are going to discuss the 10 best American oil and gas stocks to buy now.
After a difficult end to 2025, WTI crude oil futures have surged by over 14% since the beginning of 2026 and are currently hovering around $65.5 per barrel. The recent uptick has been driven by a combination of factors, including the disruption of supply from Kazakhstan and the effects of the recent winter storm, which have curbed production in the United States. According to Citi analyst Anthony Yuen, the cold weather curtailed oil production by about 1.5 million barrels per day at its peak.
Moreover, the escalating tensions between Washington and Tehran have raised concerns over potential disruptions to oil flows from the Middle East, which account for roughly a third of global supply. If Iran retaliates and closes the Strait of Hormuz, it could disrupt the 20 million barrels per day of oil that flows through it. Moreover, the White House’s push to pressure countries away from buying Russian oil has also effectively reduced supply.
Meanwhile, natural gas prices also soared by over 62% earlier this month, driven by the boosted heating demand from the Arctic blast. However, prices have since fallen as traders booked profits, despite ongoing supply disruptions from the winter storm.
With that said, here are the best American oil and gas stocks to invest in.
Our Methodology
To collect data for this article, we reviewed companies in the oil and gas sector and shortlisted those with the highest number of hedge funds invested in them as of the end of Q3 2025, according to the Insider Monkey database. The following are the Best Oil and Gas Stocks According to Hedge Funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
10. Devon Energy Corporation (NYSE:DVN)
Number of Hedge Fund Holders: 59
Devon Energy Corporation (NYSE:DVN) is a leading independent energy company engaged in finding and producing oil and natural gas, with operations focused onshore in the United States.
On January 27, Wells Fargo raised its price target on Devon Energy Corporation (NYSE:DVN) from $37 to $43, while keeping an ‘Overweight’ rating on the shares. The analyst noted that the macro oil environment remains under pressure from the rising output from OPEC and non-OPEC players, with risks of a near-term supply glut driving down prices. As a result, Wells Fargo favors frameworks with low reinvestment and strong capital discipline.
Devon Energy Corporation (NYSE:DVN) also received a boost on January 26 when Susquehanna analyst Charles Minervino raised the firm’s price target on the stock from $42 to $45, while maintaining a ‘Positive’ rating on the shares. The revised target, which indicates an upside of 13% from the current levels, comes as the firm adjusted its targets in the E&P sector as part of a Q4 preview.
Susquehanna highlighted that the global oversupply and softer demand have put downward pressure on oil prices, prompting the firm to drop its 2026 WTI price assumption from $65 per barrel to $60. However, the analyst remains bullish on the long-term outlook for natural gas, driven by growing power demand from data centers and electrification.
9. Valero Energy Corporation (NYSE:VLO)
Number of Hedge Fund Holders: 60
Valero Energy Corporation (NYSE:VLO) is the world’s premier independent petroleum refiner and a leading producer of low-carbon transportation fuels.
Valero Energy Corporation (NYSE:VLO) posted strong results for Q4 2025 on January 29, beating estimates on both earnings and revenue, driven by a rebound in margins and higher throughput volume. Valero’s refining margin per barrel of throughput was up by over 61% YoY to $13.61, while average throughput volume surged to 3.1 million barrels per day, from almost 3 million bpd in the year-ago period. As a result, the refiner’s adjusted EPS for the quarter came in at $3.82, topping forecasts by $0.55.
Valero Energy Corporation (NYSE:VLO) reported $6 billion in adjusted net cash provided by operating activities in FY 2025, with the company returning $4 billion to shareholders, resulting in a payout ratio of 67% for the year. The refiner increased its quarterly dividend by more than 6% to $1.20 per share on January 22 and currently offers an annual dividend yield of 2.61%.
Valero Energy Corporation (NYSE:VLO) was also recently included in our list of the 10 High Yield Crude Oil Stocks to Buy After Trump’s Blitz in Venezuela.
8. EOG Resources, Inc. (NYSE:EOG)
Number of Hedge Fund Holders: 61
EOG Resources, Inc. (NYSE:EOG) is one of the largest crude oil and natural gas exploration and production companies in the United States, with proven reserves in the US and Trinidad.
On January 27, Wells Fargo slightly raised its price target on EOG Resources, Inc. (NYSE:EOG) from $126 to $127, while keeping an ‘Overweight’ rating on the shares. The analyst noted that the macro oil environment is currently under pressure from the increasing output from OPEC and non-OPEC players, with prices pushed down by a near-term surplus. Amid the softer environment, Wells Fargo continues to favor players that maintain low reinvestment and strong capital discipline.
On the other hand, on January 26, Susquehanna reduced its price target on EOG Resources, Inc. (NYSE:EOG) from $161 to $151, but kept a ‘Positive’ rating on the shares. The update comes as the analyst firm revised its targets in the exploration and production group as part of a Q4 preview. Susquehanna noted that the oil market is currently faced with a supply glut and softer demand, putting downward pressure on prices. As a result, the firm lowered its 2026 WTI price assumption from $65 to $60 per barrel.
However, the analyst remains bullish on the long-term outlook for natural gas, with the growing power requirements from data centers and electrification supporting demand.
7. Occidental Petroleum Corporation (NYSE:OXY)
Number of Hedge Fund Holders: 62
Occidental Petroleum Corporation (NYSE:OXY) is an independent exploration and production company with assets primarily in the United States, the Middle East, Africa, and Latin America.
On January 28, Piper Sandler analyst Mark Lear slightly nudged up the firm’s price target on Occidental Petroleum Corporation (NYSE:OXY) from $46 to $47, while maintaining a ‘Neutral’ rating on the shares. The revised target indicates an upside of almost 5% from the current share price. The analyst estimates strong prints from gas operators in the Q4 2025 earnings season, while weak oil and NGL prices were a headwind for oil companies during the quarter. As we head into 2026, Piper expects a number of gas producers to push for growth in response to the increasing demand for LNG.
Similarly, on January 27, BofA increased its price target on Occidental Petroleum Corporation (NYSE:OXY) from $44 to $45 while maintaining a ‘Neutral’ rating on the shares. The revision comes as the analyst firm updated its price targets for the Integrated, Refining, and Midstream stocks under its coverage.
6. Antero Resources Corporation (NYSE:AR)
Number of Hedge Fund Holders: 70
An independent natural gas and liquids company operating in the Appalachian Basin, Antero Resources Corporation (NYSE:AR) is one of the largest American suppliers of natural gas and LPG to the global export market.
On January 23, Morgan Stanley lowered its price target on Antero Resources Corporation (NYSE:AR) from $48 to $46, while maintaining an ‘Overweight’ rating on the shares. The reduced target still indicates an upside of over 29% from the current levels. The firm marked its 2026-27 oil price forecasts as of January 7 in conjunction with its Q4 preview for the E&Ps, oil majors, and Canadian producers. The analyst expects Q4 operational updates to be ‘fairly clean’, while it projects lighter cash flow from price realizations.
Similarly, earlier on January 21, Barclays also reduced its price target on Antero Resources Corporation (NYSE:AR) from $46 to $41, but kept an ‘Equal Weight’ rating on the shares. The update comes as the firm adjusted its ratings and targets in the E&P group as part of a Q4 preview.
Antero Resources Corporation (NYSE:AR) was recently included in our list of the 11 Best Inexpensive Stocks to Buy Now.
5. ConocoPhillips (NYSE:COP)
Number of Hedge Fund Holders: 72
ConocoPhillips (NYSE:COP) is one of the world’s largest independent E&P companies based on oil and natural gas production and proven reserves.
On January 26, Susquehanna raised its price target on ConocoPhillips (NYSE:COP) from $110 to $115, while maintaining a ‘Positive’ rating on the shares. The revised target, which still indicates an upside of almost 10% from current levels, comes as the firm revised its targets in the exploration and production sector as part of a Q4 preview. Susquehanna noted that the oil market continues to face oversupply issues due to high output from OPEC, putting downward pressure on prices. Meanwhile, the market is also experiencing soft global demand growth.
As a result, Susquehanna reduced its 2026 WTI price assumption from $65 to $60 per barrel. That said, the analyst remains bullish on the long-term outlook for natural gas, driven by the high power demand from data centers and the continued electrification of homes and businesses.
ConocoPhillips (NYSE:COP) boasts an impressive annual dividend yield of 3.04%, putting it among the 11 Best Energy Stocks to Buy for Dividends in 2026.
4. Cheniere Energy, Inc. (NYSE:LNG)
Number of Hedge Fund Holders: 76
Cheniere Energy, Inc. (NYSE:LNG) is the largest producer of liquefied natural gas in the United States and the second-largest LNG operator in the world.
On January 27, Cheniere Energy, Inc. (NYSE:LNG) declared a quarterly dividend of $0.555 per share for all shareholders as of the February 6 record, payable on February 27, 2026. The stock currently offers an annual dividend yield of 1.04%.
In other news, on January 28, RBC Capital lowered its price target on Cheniere Energy, Inc. (NYSE:LNG) from $282 to $271, but kept its ‘Outperform’ rating on the shares. The reduced target, which still represents an upside of over 27% from the current share price, is part of a broader research note previewing Q4 for the US midstream sector, with commodity prices and production curtailments driving most of the firm’s estimate changes. While the AI bubble drove the natural gas operators to underperform the broader market in Q4, RBC still favors the natural gas growth story and expects it to remain a key theme throughout this earnings season.
3. Expand Energy Corporation (NASDAQ:EXE)
Number of Hedge Fund Holders: 77
Formed in 2024 by the merger of Chesapeake Energy Corporation and Southwestern Energy Company, Expand Energy Corporation (NASDAQ:EXE) operates as an independent natural gas production company in the United States.
On January 28, Piper Sandler lowered its price target on Expand Energy Corporation (NASDAQ:EXE) from $138 to $137, while keeping an ‘Overweight’ rating on the shares. The analyst expects strong prints from the gas equities in the fourth quarter, while WAHA pricing and weak oil and NGL prices have put pressure on oil operators. As we head into FY 2026, Piper expects a number of gas producers to push for growth in response to the ballooning demand for LNG.
Earlier, on January 21, Barclays reduced its price target on Expand Energy Corporation (NASDAQ:EXE) from $136 to $126 but maintained its ‘Overweight’ rating on the shares. The downward revision comes as the firm adjusted its ratings and targets in the exploration and production group as part of a Q4 preview. The analyst noted that the upstream sector’s cash return model ‘remains resilient’ amid macroeconomic volatility and sees attractive opportunities in the US onshore. However, Barclays advised investors to ‘tread carefully’ through the near-term commodity uncertainty.
2. Chevron Corporation (NYSE:CVX)
Number of Hedge Fund Holders: 89
Chevron Corporation (NYSE:CVX) manufactures and sells a range of high-quality refined products, including gasoline, diesel, marine and aviation fuels, premium base oil, finished lubricants, and fuel oil additives.
According to a Reuters report on January 28, Chevron Corporation (NYSE:CVX) is set to increase its Venezuelan crude oil exports to the United States to around 300,000 barrels per day (bpd) in March, up significantly from 100,000 bpd in December and some 230,000 bpd so far in January. The oil giant, which has been operating under a special US license to operate in the South American country, has emerged as a key winner from the recent US action in Venezuela.
Chevron Corporation (NYSE:CVX), in a joint venture with state-run PDVSA, is currently producing around 240,000 – 250,000 barrels of sour Venezuelan crude per day, which is especially popular among the US Gulf Coast refineries. While the oil major had been the sole American company still operating in Venezuela under the Maduro regime, it is now competing with trading houses Vitol and Trafigura, which were also granted US licenses earlier this month to export Venezuelan oil to the US and other markets.
1. Exxon Mobil Corporation (NYSE:XOM)
Number of Hedge Fund Holders: 93
Topping our list of the Best American Oil and Gas Stocks is Exxon Mobil Corporation (NYSE:XOM), one of the largest integrated fuels, lubricants, and chemical companies in the world.
Exxon Mobil Corporation (NYSE:XOM) announced on January 26 that it has commenced commercial operations of a carbon capture and storage project with ammonia producer CF Industries in Louisiana. The project, which entered service in 2025, will transport and store up to 2 million tons a year (MTPA) of carbon dioxide from CF’s Donaldsonville complex.
Exxon Mobil Corporation (NYSE:XOM) is positioning itself as a leading operator of carbon transport and storage networks and has secured agreements with AtmosClear and Lake Charles Methanol II to handle up to a combined 2 MTPA of CO2 from their planned facilities in Louisiana. The oil major is developing multiple storage hubs across Texas and Louisiana and expects three CCS projects to come online in 2026. Moreover, the company is progressing plans for its first low-carbon data center, with a final investment decision (FID) expected by the end of this year.
While we acknowledge the potential of XOM to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than XOM and that has 100x upside potential, check out our report about this cheapest AI stock.
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