In this article we discuss 10 Most Profitable Energy Stocks to Buy Right Now.

The energy sector has underperformed since the new bull market began in 2022. The sector has lagged amid heightened focus on technology stocks and the ongoing transition to clean energy. That’s evident as the S&P 500 Energy Index is only up by about 3% compared to the 14% gain of the overall market.

Energy stocks have struggled amid concerns over slowing global demand and investor preference for higher-growth sectors, such as technology and communication services. The last time the energy sector led the overall market was in 2022, when Russia invaded Ukraine, triggering supply shocks and consequently sending oil prices above the $ 100-per-barrel level.

Oil prices have since dropped to about $61 a barrel and struggling to power above the $70 a barrel psychological level. According to Eric Nuttall, a portfolio manager at Ninepoint Partners, the energy sector faces a barrage of uncertainties attributed to President Donald Trump’s push for lower oil prices. As investors focused more on tech-fueled gains, energy stocks have seen their share of the market diminish significantly.

Amid underperformance, energy stocks are trading at significant discount, even as the broader stock market struggles with premium valuations. After years of underperformance, a good chunk of the energy stocks are offering a higher risk-reward at highly discounted valuations.

Likewise, the long-term outlook in the energy sector remains positive in the aftermath of Donald Trump’s $750 billion trade agreement with the European Union. With the deal, the EU is obligated to purchase $750 billion worth of US energy exports over the next three years, which should be a boon for US energy companies.

“The $750 billion pledge over three years is highly ambitious given current levels are under $100 billion. To hit $250 billion annually, the EU would need to import 67% of its energy needs from the US,” said Oxford Economics’ Oliver Rakau.

With that in mind, let’s look at some of the most profitable energy stocks to buy right now that have shrugged off uncertainties and are poised for long-term value.

Our Methodology 

To compile the list of the most profitable energy stocks to buy right now, we used Finviz to screen for energy companies that boast positive earnings. We then used Yahoo Finance to cross-reference and settle on companies with more than $1 billion in  trailing twelve-month (TTM) net income. We trimmed the list further to focus on companies with a TTM Operating Margin of at least 15% and that were popular among elite hedge funds. Finally, we ranked the stocks in ascending order based on the number of hedge fund holders.

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).

Most Profitable Energy Stocks to Buy Right Now

10. Western Midstream Partners, LP (NYSE:WES)

TTM Operating Margin: 43.29%

TTM Net Income: $1.27 Billion 

Number of Hedge Fund Holders: 5

Western Midstream Partners LP (NYSE:WES) is one of the most profitable energy stocks to buy right now. On September 30, analysts at investment bank UBS reiterated a ‘Neutral’ rating on the stock and a $40 price target.

The Neutral stance comes as the investment bank awaits the completion of the proposed acquisition of ARIS Water Solution in a cash-and-stock deal valued at $1.4 billion. The acquisition is expected to strengthen the company’s water midstream business in the Delaware Basin.

The deal is poised to close in the fourth quarter following the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. While the transaction is expected to be accretive to WES’s 2026 free cash flow, it will also represent a 7.5x multiple on consensus 2026 EBITDA, inclusive of estimated cost synergies.

Western Midstream Partners LP (NYSE:WES) owns and operates midstream energy infrastructure, providing services such as gathering, compressing, treating, processing, and transporting natural gas, crude oil, and natural gas liquids (NGLs), as well as gathering and disposing of produced water

9. MPLX LP (NYSE:MPLX)

TTM Operating Margin: 39.64%

TTM Net Income: $4.31 Billion 

Number of Hedge Fund Holders: 13

MPLX LP (NYSE: MPLX) is one of the most profitable energy stocks to buy right now. On October 1, UBS reiterated a ‘Buy’ rating on the stock and a $64 price target. The positive stance follows the stock’s impressive performance with a 20.77% return over the past year.

UBS remains optimistic about the company’s long-term prospects, attributed to key tailwinds, including expected volume growth, particularly in the NGL segment. The volume growth would come against the backdrop of heavy maintenance activity.

Consequently, the investment bank has increased the company’s third-quarter 2025 Natural Gas/NGL EBITDA estimate from $490 million to $534 million. The increase reflects the company’s higher ownership stakes at the BANGL and Matterhorn projects.

MPLX LP (NYSE:MPLX) is a master limited partnership that owns and operates midstream energy infrastructure and logistics assets, focusing on the gathering, processing, transportation, storage, and distribution of natural gas, natural gas liquids (NGLs), crude oil, and refined products.