10 Cheapest Oil and Gas Stocks to Invest in

1. Crescent Energy Company (NYSE:CRGY)

Forward P/E: 5.14

Potential Upside: 71.78%

Number of Hedge Fund Holders: 38

Around January 9, Phillip Jungwirth, an analyst at BMO Capital Markets, initiated coverage of Crescent Energy Company (NYSE:CRGY) with a Market Perform rating and set a $10 price target. The analyst was encouraged by the improved margins and cost structure resulting from the streamlining of the company’s asset base. However, the analyst remains cautious about the 2026 outlook, which is expected to face headwinds, including a reduction in legacy Vital production to a sustainable baseline. Moreover, potential volatility in oil prices might affect de-leveraging plans.

Earlier, the company, through its wholly-owned subsidiary Crescent Energy Finance LLC, issued two series of senior unsecured notes comprising $294.8 million due July 31, 2029, with a 7.75% coupon, and $237.2 million due October 15, 2030, with a 9.75% coupon. Both issuances are unconditionally and fully guaranteed on a senior unsecured basis by existing subsidiary guarantors under the group’s revolving credit facility. However, neither the listed parent company nor the OpCo provides the guarantee.

The Crescent 2029 and 2030 notes were issued in unregistered exchange offers for the existing Vital notes and contain standard high‑yield features, including change‑of‑control repurchase rights, optional redemption schedules, acceleration upon events of default, and leverage‑ and payout‑restricting covenants. At the same time, supplemental indentures for the vital notes became effective as of December 12, 2025, eliminating certain restrictive covenants. These combined actions reshaped the company’s overall capital structure and covenant package for noteholders.

Crescent Energy Company (NYSE:CRGY) operates as an energy company. The company is engaged in the production and exploration of natural gas, crude oil, and natural gas liquids across the United States. It operates mainly in Texas and the Rocky Mountain region.

While we acknowledge the potential of CRGY 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 CRGY and that has 100x upside potential, check out our report about this cheapest AI stock.

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