10 Cheap Utility Stocks to Buy According to Hedge Funds

7. Pampa Energia S.A. (NYSE:PAM)

Number of Hedge Fund Holdings: 12 

Pampa Energia S.A. (NYSE:PAM) is an integrated energy company in Argentina with operations in electricity generation, oil and gas production, and petrochemicals. It owns about 5,332 MW of installed power capacity and has grown its presence in renewable energy and natural gas production, especially through the Vaca Muerta shale formation.

In July 2025, the company submitted a $426 million proposal to build a major oil and gas processing plant in Neuquén province as part of a broader $1.5 billion expansion plan. This new facility, set to begin operations in 2026, includes a Central Processing Facility, pipelines, and storage terminals, all connected to Argentina’s existing oil and gas infrastructure. The goal is to increase production at the Rincon de Aranda field tenfold, with crude oil exports projected to generate $1.2 billion annually starting in 2027.

To support its growth, Pampa Energia S.A. (NYSE:PAM) recently issued $340 million in senior notes due in 2034, raising the total to $700 million. These funds will be used to redeem existing debt and finance strategic initiatives. Operationally, the business has posted strong results, with natural gas production growing 21% year-over-year and adjusted EBITDA rising 30% in Q2 2024. Wind energy capacity has also expanded by 50% since 2017.