In this article, we are going to discuss the 10 most profitable energy stocks to buy now.
As of the writing of this piece, the S&P Energy index has surged by 26.52% since the beginning of 2026. This compares to gains of just under 7% posted by the overall S&P 500 during the period.
The energy sector has been the best performer so far this year, driven by the soaring oil prices amid the Iran war. The conflict has choked around a fifth of the global crude and LNG supply, causing massive disruptions and sending prices to levels last seen when Russia invaded Ukraine back in 2022.
That said, the price shock came as a boon for American producers, especially the shale operators, who had been struggling with higher costs. According to figures from Rystad Energy, the world’s biggest oil and gas companies made estimated windfall war profits of around $23 billion during the first month of the Iran war. Moreover, if the oil price continues to average around $100 per barrel for the rest of the year, these companies are expected to make $234 billion.
As a result, 38 of 40 upstream companies in the S&P 500 finished the first quarter in positive territory, while the Big Three refiners averaged returns of 48.6%. Meanwhile, the midstream sector was led by tanker stocks, which posted gains of more than 45%. Moreover, we saw several Big Oil names, including Exxon and Chevron, hitting their all-time highs in the last quarter.
Even if the war ended today, the massive war-related damage to oil infrastructure in the Middle East could keep prices high for months. According to the base case scenario at JP Morgan, a June reopening of Hormuz would maintain Brent oil price at around $100 per barrel for the rest of 2026. Moreover, the analyst firm expects that a prolonged closure of the strait would add a further $5 in the third quarter and $15 in the fourth quarter, due to the fast-depleting stocks.
With that said, here are the Most Profitable Energy Stocks to Buy in 2026.
Our Methodology
To collect data for this article, we referred to screeners to identify energy oil stocks that had a net profit margin of over 15%, as of the most recent quarter. We then limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. The following are the Most Profitable Energy Stocks to Invest in.
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. Insider Monkey’s quarterly newsletter strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
10. Venture Global, Inc. (NYSE:VG)
Net Profit Margin: 18.36%
Venture Global, Inc. (NYSE:VG) develops and constructs LNG export projects to provide clean, affordable energy to the world. The company is currently one of the largest LNG exporters in the United States.
On June 4, JPMorgan upgraded Venture Global, Inc. (NYSE:VG) from ‘Neutral’ to ‘Overweight’, while also boosting its price target on the stock from $16 to $17. The revised price goal represents an upside of over 36% from the current levels.
The ongoing US-Iran war has choked around a fifth of the global LNG supply, significantly reshaping the superchilled fuel’s supply-demand landscape. JPMorgan noted that the conflict has induced “significant volatility” in the sector and reinforced the importance of ensuring a diversified and secure energy supply. The analyst firm believes that the market is underappreciating the likelihood of sustained volatility in the LNG sector.
The LNG shipments from Qatar are significantly down and will take years to recover. According to the analyst, this presents a unique opportunity for Venture Global to capitalize on the “outsized” margins and secure both medium-and long-term contracts.
With 22 hedge fund holders at the end of Q1 in the Insider Monkey database, Venture Global, Inc. (NYSE:VG) was recently included in our list of the 12 Best LNG Stocks to Buy in 2026.
9. South Bow Corporation (NYSE:SOBO)
Net Profit Margin: 21.32%
South Bow Corporation (NYSE:SOBO) operates 3,045 miles of crude oil pipeline infrastructure, connecting Alberta crude oil supplies to US refining markets in Illinois, Oklahoma, and the Gulf Coast.
On June 9, Raymond James initiated coverage of South Bow Corporation (NYSE:SOBO) with an ‘Outperform’ rating and a price target of C$60, indicating an upside of over 19% from the current levels.
South Bow has deferred the decision to proceed with its proposed partial revival of the Keystone XL oil pipeline until mid-2027. The company announced that it will proceed with Keystone only if it has proof that a US presidential permit is “durable”, since the project was already once cancelled in 2021 when former President Joe Biden revoked its permit.
However, Raymond James believes that the Keystone XL pipeline is an “irreplaceable long-duration asset that underpins predictable cash flows for decades”. The analyst firm also expressed confidence that the proposed 550,000 bpd Alberta-to-Wyoming pipeline, dubbed Prairie Connector, will ultimately receive a positive final investment decision and will be “a game changer”.
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