In this article, we will take a detailed look at the 10 Best Energy Stocks to Buy For the Long Term.
The energy sector has lagged for the better part of the year. While the overall equity market has bounced back from its April lows, as depicted by the S&P 500 rallying to record highs, energy stocks have fared poorly.
The S&P 500 Energy Index is down approximately 1% for the year, an underperformance attributed to soft oil prices for the better part of the year. The performance of energy stocks is often tied to oil and gas prices.
The West Texas Intermediate crude, down by about 9% per barrel for the year, has come on supply being plentiful in the market. With eight members of the OPEC+ cartel planning to increase production by approximately 548,000 barrels per day, the outlook in the sector could deteriorate further.
Amidst the overall underperformance of the energy sector, some gems have stood and continue to remain resilient. According to Rob Ginsberg, technical analyst at Wolfe, its high time investors focused on gems backed by solid underlying fundamentals amid the deteriorating fundamentals in the energy sector.
“The landscape of the sector remains in the favor of stock pickers with outperformers being few and far between,” Ginsberg wrote in a research note to investors.
Given that energy stocks tend to perform independently of other types of stocks, they offer some of the best options for diversifying investment portfolios. Additionally, some of the stocks provide attractive dividend yields due to robust sales growth, making them attractive investment prospects for income-focused investors. Energy stocks can also help hedge against inflation, as oil and gas prices tend to rise during periods of inflation.
“There’s a huge amount of the oil industry that is devoted to the internal combustion engine,” says Michael Jones, who is chief executive of Caravel Concepts, a maker of asset allocation software for financial advisors. “When you buy into the energy space, you are buying into a gale-force headwind in terms of the long-term industry prospects.”
With that in mind, let’s take a look at the 10 Best Energy Stocks to Buy for the Long Term.
Our Methodology
To compile the list of the best energy stocks to buy for the Long Term, we sifted through financial media reports and used the Finviz stock screener to select the top energy stocks that are popular among elite hedge funds. We focused on companies that have grown their sales by over 20% in the past 5 years and also considered their upside potential based on analysts’ estimates (as of August 15). Finally, we ranked the stocks in ascending order based on the number of hedge funds that held stakes in them, as of Q1 2025.
Why are we interested in the stocks that hedge funds pile into? The reason is straightforward: our research has demonstrated that we can outperform the market by replicating 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Best Energy Stocks to Buy For the Long Term
10. Riley Exploration Permian Inc. (NYSE:REPX)
5-Year Sales Growth: 142.30%
Number of Hedge Fund Holders: 10
Analyst Upside Potential: 46.26%
Riley Exploration Permian Inc. (NYSE:REPX) is one of the best energy stocks to buy for the long term. On August 6, the company delivered solid second-quarter results despite facing a challenging oil market and a regional operating environment. The company faced infrastructure constraints triggered by many operators in the Permian Basin.
Amid the challenges, the company generated earnings per share of $1.44, better than the analyst estimate of $1.16 a share. Revenue totaled $85.39 million versus $87.25 million expected. The company generated $34 million in operating cash flow, $18 million in total free cash flow, and $21 million in upstream free cash flow.
The solid financial results followed Riley Exploration’s progress in expanding its midstream infrastructure in New Mexico. The company also commissioned the initial phases of low-pressure gathering and high-pressure compression facilities. It also entered into a purchase agreement for a high-pressure grade pipe to be delivered in 2025.
Riley Exploration Permian Inc. (NYSE:REPX) is an independent oil and natural gas company focused on acquiring, exploring, developing, and producing oil, natural gas, and natural gas liquids within the Permian Basin. It specializes in horizontal drilling of conventional, oil-saturated, and liquids-rich formations in the Permian Basin to generate long-term cash flow.
9. Woodside Energy Group Ltd (NYSE:WDS)
5-Year Sales Growth: 23.37%
Number of Hedge Fund Holders: 14
Analyst Upside Potential: 1.57%
Woodside Energy Group Ltd (NYSE:WDS) is one of the best energy stocks to buy for the long term. On July 23, the company delivered better-than-expected second-quarter results that topped consensus estimates. Revenue in the quarter came in at $3.27 billion, compared to the $3.16 billion that analysts had expected.
The better-than-expected revenue was mostly influenced by exceptional performance at the Sangomar field and strong operational results across the portfolio. In addition, Woodside Energy Group benefited from a strong realized quarterly price of $62 per barrel of oil equivalent. It also benefited from diversified pricing and optimization strategies.
During the quarter, Woodside Energy produced 50.1 million barrels of oil equivalent, up 2% from the previous quarter and 13% higher than the same quarter last year.
“We delivered strong production of 50 million barrels of oil equivalent for the quarter from our diverse portfolio of high-quality assets. At the same time, ongoing focus on cost control has enabled us to lower our unit production cost guidance for 2025,” said CEO Meg O’Neill.
Following the impressive second-quarter results, Woodside Energy Group updated its full-year production guidance to between 188 and 195 million barrels of oil equivalent (MMboe). The company also reduced its production cost guidance to between $8.0 and $8.5 per barrel of oil equivalent (boe) from the previous range of $8.5-$9.2 per boe.
Woodside Energy Group Ltd (NYSE:WDS) is a global energy company focused on the exploration, development, production, marketing, and sale of hydrocarbons, including liquefied natural gas (LNG), pipeline gas, and crude oil.
8. BKV Corporation (NYSE:BKV)
5-Year Sales Growth: 49.69%
Number of Hedge Fund Holders: 17
Analyst Upside Potential: 33.19%
BKV Corporation (NYSE:BKV) is one of the best energy stocks to buy for the long term. On August 13, Mizuho raised its price target of the stock to $35 from $33 and reiterated an ‘Outperform’ rating. The price target follows the company’s stronger-than-expected free cash flow performance, with just $2 million outspent.
The company demonstrated strong financial performance in the second quarter with earnings per share of $0.39 that exceeded expectations. It also achieved $322.04 million in revenue. Mizuho expects the acquisition of contiguous upstream assets in the Barnett Shale from Bedrock to provide BKV Corp with greater scale and operational efficiency.
The research firm also echoed the company’s progress in monetizing Carbon Sequestered Gas (CSG), which is simply natural gas sold at a premium due to carbon offset. The research firm also views the company’s ability to deliver differentiated products through an integrated business model as a positive that justifies the Outperform rating.
BKV Corporation (NYSE:BKV) is a growth-driven energy company focused on producing natural gas and developing carbon capture, utilization, and sequestration (CCUS) technologies. It is one of the top 20 natural gas producers in the US and the largest in the Barnett Shale.
7. Bristow Group Inc. (NYSE:VTOL)
5-Year Sales Growth: 44.32%
Number of Hedge Fund Holders: 20
Analyst Upside Potential: 16.96%
Bristow Group Inc. (NYSE:VTOL) is one of the best energy stocks to buy for the long term. On August 5, the company delivered another quarter of strong financial results and raised its full-year guidance for 2025 and 2026.
Revenue in the second quarter increased to $376.4 million, up from $350.5 million in the first quarter, primarily due to higher utilization and favorable foreign exchange rates. Bristow Group also delivered $31.7 million in net income, or $1.07 per share, a significant improvement from the $27.4 million in net income, or $0.92 per share, delivered in the first quarter.
Adjusted EBITDA rose to $60.7 million compared to $57.7 million in Q1 2025. The company raised its 2025 Adjusted EBITDA outlook range to between $240 million and $260 million. It also expects its 2026 EBITDA to range between $300 and $335 million.
Bristow Group Inc. (NYSE:VTOL) is a global provider of vertical lift solutions, specializing in helicopter transportation for the offshore energy industry, search and rescue (SAR) services, and government services. It operates a large fleet of modern aircraft.
6. Energy Fuels Inc. (NYSE:UUUU)
5-Year Sales Growth: 67.84%
Number of Hedge Fund Holders: 21
Analyst Upside Potential: 7.89%
Energy Fuels Inc. (NYSE:UUUU) is one of the top energy stocks to consider for long-term investment. On August 6, the company delivered solid second-quarter results that affirmed its long-term commitment to the Pinyon Plain uranium mine. Additionally, the company’s net loss narrowed amid exceptional mining activity at its flagship project.
Net loss in the quarter narrowed to $21 million or $0.10 a share compared to a net loss of $26.32 million or $0.13 a share delivered in the first quarter. Additionally, the company exited the quarter in a solid financial position, with $250 million in liquidity and no debt.
Energy Fuels confirmed it expects high mined grades and production at the Pinyon Plain mine for several additional years. The mine should offer sustained low unit costs of between $23 and $30 per pound U3O8, resulting in dramatically higher expected uranium margins.
“While our uranium segment showed a loss this quarter due to limited uranium sales, revenue from upcoming contract deliveries, along with possible spot market sales during the remainder of 2025, is expected to provide substantial cash flow starting this year and getting into full swing in 2026 and subsequent years, to be offset against our global operating and capital costs,” said Mark Chalmers, Energy Fuels’ Chief Executive Officer.
Energy Fuels Inc. (NYSE:UUUU) is a uranium mining and production company that produces uranium concentrates for nuclear utilities, which are used to generate carbon-free nuclear energy. It operates two key uranium production centers in the US: the White Mesa Mill in Utah and the Nichols Ranch ISR Facility in Wyoming.
5. Atlas Energy Solutions Inc. (NYSE:AESI)
5-Year Sales Growth: 75.32%
Number of Hedge Fund Holders: 25
Analyst Upside Potential: 12.77%
Atlas Energy Solutions Inc. (NYSE:AESI) is one of the top energy stocks to consider for long-term investment. On August 11, analysts at Stifel reiterated a ‘Buy’ rating on the stock. However, the research firm cut the stock’s price target to $14 from $14.50.
The price target cut follows the energy company’s delivery of second-quarter results that missed expectations. The company reported a net loss of $0.04 per share, compared to the expected earnings of $1.08 per share. Atlas Energy reported revenue of $288.7 million, beating expectations of $239.17 million by 20.71%. In addition, the research firm raised concerns over near-term headwinds from the lackluster activity completion in the US.
Stifel maintains a Buy rating, impressed by the prospect of a fully operational Dune Express, which is likely to drive sales and market share gain in the long term. The research firm also echoed momentum in Atlas Energy’s Power generation segment.
Atlas Energy Solutions Inc. (NYSE:AESI) provides integrated proppant and logistics solutions to the oil and gas industry, primarily in the Permian Basin. It delivers proppant, a material used in hydraulic fracturing, and manages the associated logistics for its customers.
4. Kinetik Holdings Inc. (NASDAQ:KNTK)
5-Year Sales Growth: 62.41%
Number of Hedge Fund Holders: 32
Analyst Upside Potential: 24.46%
Kinetik Holdings Inc. (NYSE:KNTK) is one of the best energy stocks to buy for the long term. On August 13, Goldman Sachs reiterated a ‘Buy’ rating on the stock but cut its price target to $49 from $47.
The investment bank maintains a Buy rating on the midstream energy company, achieving an impressive 19.71% revenue growth over the last 12 months. In addition, the rating comes on the company delivering solid second-quarter results, showcasing modest growth and aligning with expectations. The company also reiterated its fourth quarter 2025 EBITDA guidance of $300 million, translating to $1.2 billion on an annualized basis.
Goldman Sachs also reiterated its expectation that the company will achieve significant growth as it captures a larger share of the Northern Delaware production and implements cost-saving initiatives. Nevertheless, the investment bank lowered its price target, concerned by delays in the Kings Landing complex completion and postponed producer development plans.
Kinetik Holdings Inc. (NYSE:KNTK) is a midstream energy company operating in the Delaware Basin. It provides comprehensive services for companies that produce natural gas, natural gas liquids (NGLs), crude oil, and water.
3. Northern Oil and Gas Inc (NYSE:NOG)
5-Year Sales Growth: 29.19%
Number of Hedge Fund Holders: 34
Analyst Upside Potential: 34.44%
Northern Oil and Gas Inc (NYSE:NOG) is one of the best energy stocks to buy for the long term. On August 1, the company delivered impressive second-quarter 2025 results that topped consensus estimates.
The oil and gas company achieved earnings per share of $1, compared to the $0.95 per share that analysts expected. Revenue came in at $574.4 million, compared to the $526.63 million that analysts had predicted. The better-than-expected results came on the company achieving robust operational performance in Q2 2025, with total daily production increasing 9% year-over-year to 134,000 barrels of oil per day.
“NOG’s diverse and scaled platform delivered solid results, with strong free cash flow generation and continued growth from our Appalachian and Uinta Basin properties. The Ground Game continues to gain momentum, providing accretive opportunities that should benefit the Company through cycle, featuring both near term development and longer dated inventory rich opportunities,” commented Nick O’Grady, Northern Oil and Gas Inc’s Chief Executive Officer.
During the quarter, Northern Oil and Gas repurchased 1.1 million shares of common stock at an average share price of $31.15 a share. It also returned value to shareholders with the payment of a $0.45 dividend per share, representing a 7% quarter-over-quarter increase. Concerned by the volatility in commodity markets, the company is reducing its activity in the Williston Basin. It is now expected that capital spending will average between $125 and $150 million.
Northern Oil and Gas Inc (NYSE:NOG) is an independent energy company focused on acquiring, developing, and producing oil and natural gas properties in the United States. It invests in non-operated, minority working and mineral interests, meaning they partner with other companies that operate the wells.
2. Matador Resources Company (NYSE:MTDR)
5-Year Sales Growth: 27.61%
Number of Hedge Fund Holders: 38
Analyst Upside Potential: 30.78%
Matador Resources Company (NYSE:MTDR) is one of the best energy stocks to buy for the long term. On July 24, KeyBanc reiterated an ‘Overweight’ rating on the stock and raised the price target to $62 from $60. The price target hike follows the company’s mixed second-quarter results.
The company announced earnings per share of $1.53, which exceeded the $1.44 that analysts had expected. On the other hand, revenue came in at $815.77 million, compared to the expected $908.61 million. Amid the mixed financial results, KeyBanc reiterated Matador Resources’ drilling efficiencies and strong performance at the Midstream segment.
In addition, the research firm has echoed the company’s track record in returning value to shareholders. Matador Resources has paid dividends for five consecutive years, and the stock currently yields a dividend of 2.47%.
Matador Resources Company (NYSE:MTDR) is an independent energy company focused on the exploration, development, production, and acquisition of oil and natural gas resources in the United States. Its operations are concentrated in the Delaware Basin, located in Southeast New Mexico and West Texas.
1. Permian Resources Corporation (NYSE:PR)
5-Year Sales Growth: 39.57%
Number of Hedge Fund Holders: 52
Analyst Upside Potential: 33.73%
Permian Resources Corporation (NYSE:PR) is one of the best energy stocks to buy for the long term. On August 13, Wells Fargo reiterated an ‘Overweight’ rating on the stock and raised the price target to $21 from $20. The positive stance follows the company’s second-quarter results that were in line with the research firm’s estimates.
The company posted earnings per share of $0.27 and revenue of $1.2 billion. The Permian Basin maintains strong fundamentals, characterized by a 74% gross profit margin and an impressive revenue growth rate of 16.4% over the last 12 months.
Wells Fargo remains confident about Permian Resources’ long-term prospects, owing to its differentiated Permian inventory and sustained capital efficiencies. The research firm expects the company to achieve a free cash flow of $1.6 billion for the full year, reflecting assumptions of cost deflation and commodity price realizations.
Permian Resources Corporation (NYSE:PR) is an independent oil and natural gas company focused on acquiring, optimizing, and developing high-return oil and natural gas properties in the Permian Basin, with a particular emphasis on the Delaware Basin.
While we acknowledge the potential of Permian Resources Corporation (NYSE:PR) as an investment, 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 PR and that has 100x upside potential, check out our report about this cheapest AI stock.
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