In this article, we will discuss: 10 Best Oil & Gas Drilling Stocks to Buy.
On February 27, 2026, The New York Times reported that Germany’s domestic oil and gas output had decreased by around 80% since 2000, meeting only about 5% of demand. Neptune Energy, headed by CEO Andreas Scheck, operates the 230-million-euro Adorf gas field in Georgsdorf, with plans to supply 300,000 households. Harbour Energy, managed by Claudia Kromberg in Germany, reported €39 million in the first half of 2025. Rising expenses and storage, which reached 21% compared to 40% a year ago, put a strain on consumers and energy-intensive businesses. Germany replaced lost Russian gas flows with LNG imported from Norway and the United States. Operators allocate work locally to reduce costs and improve response.
Despite these initiatives, domestic production is limited by aged fields, stringent regulations, social opposition, and a ten-year fracking ban. Carsten Mühlenmeier of the state mining authority confirmed Germany’s plans to halt oil and gas production in 2045. Operators manage well pressure, drill strategically, and keep production efficient. Neptune and Harbour concentrate on efficiency and investigate alternatives such as lithium resources and geothermal projects. Short-term operations continue to be profitable, but long-term productivity is limited by regulatory, environmental, and energy constraints.
With that said, here are the 10 Best Oil & Gas Drilling Stocks to Buy.
Photo from Hycroft Mining website
Methodology:
We used screeners to identify Oil & Gas Drilling Stocks and limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite 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. Valaris Limited (NYSE:VAL)
On February 19, 2026, Valaris Limited (NYSE:VAL) announced $537 million in fourth-quarter 2025 operating revenue, $97 million in adjusted EBITDA, and $717 million in net income. Revenues, exclusive of reimbursables, fell to $502 million from $556 million in the third quarter due to fewer floater operating days, the sale of the jackup VALARIS 247, and reduced bareboat charter sales from ARO Drilling. Contract drilling expenses grew to $380 million from $368 million, caused by higher maintenance, claims, and mobilization costs. The firm declared a $20 million impairment loss for the semisubmersible VALARIS DPS-1, and depreciation rose to $41 million.
Capital expenditures rose to $106 million from $70 million, mainly for shipyard projects and fleet improvements. The firm repurchased $25 million in shares during the fourth quarter and $100 million for the year. Valaris Limited (NYSE:VAL) won approximately $900 million in new contract backlog, bringing the total backlog to $4.7 billion. The firm said that its contracts are expected to account for 97% of revenue in 2026.
Valaris Limited (NYSE:VAL) provides offshore contract drilling services to the international oil and gas industry. It functions in the following segments: Floaters, Jackups, ARO, and Other.
9. Precision Drilling Corporation (NYSE:PDS)
On February 11, 2026, Precision Drilling Corporation (NYSE:PDS) announced fourth-quarter 2025 revenue of $479 million, up from $468 million in Q4 2024, with adjusted EBITDA of $126 million. The company reported a net loss of $42 million, which included $67 million in non-cash decommissioning expenditures and $17 million in drill pipe costs. The cash provided by operations was $126 million, covering $81 million in capital expenditures and $22 million in share repurchases while improving the cash balance by $47 million.
The company concluded 2025 with a net debt to adjusted EBITDA ratio of 1.2 times and $445 million in liquidity. Canada averaged 66 active rigs, the United States 37 rigs, and international operations 7 rigs. Revenue per utilization day remained consistent across regions. Precision Drilling Corporation (NYSE:PDS) updated 27 rigs in 2025. In 2026, the company expects to invest $245 million in its fleet, reduce debt by $100 million, and repurchase up to 50% of its free cash flow.
Precision Drilling Corporation (NYSE:PDS) provides onshore drilling, completion, and production services to the oil and gas industry. It operates in two business segments: contract drilling services and completion and production services.
Hedge Fund Resource Center