10 Best Oil Drilling Stocks to Buy According to Hedge Funds

6. Sable Offshore Corp (NYSE:SOC)

Number of Hedge Fund Holders: 29

Sable Offshore (NYSE:SOC) is one of the best oil drilling stocks according to hedge funds. On July 15, Bragar Eagle & Squire, P.C. announced it is continuing its investigation into Sable for potential violations of securities laws following the company’s May restart announcement.

That came after the California State Land Commission flagged issues with Sable’s public statements and a court ordered a preliminary injunction against its pipeline work, events that triggered a ~15% stock drop. This legal spotlight isn’t a kill switch, but it puts Sable under pressure and may delay its operational ramp-ups; the kind of risk-reward trigger hedge funds actively scan upstream.

Despite the scrutiny, Sable continues to fortify its financial footing. That mix of regulatory overhang plus rising momentum makes SOC a classic turnaround play for funds focused on upstream catalysts. If the investigation clears and pipeline work completes, the share upside could be sharp.

Sable Offshore is a pure-play offshore drilling developer centered on its Santa Ynez Unit off California. The company is preparing for a full operational restart by Q3, contingent on legal and regulatory resolution.