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.
8. Tenaris S.A. (NYSE:TS)
TTM Operating Margin: 18.74%
TTM Net Income: $2.0 Billion
Number of Hedge Fund Holders: 23
Tenaris S.A. (NYSE:TS) is one of the most profitable energy stocks to buy right now. On September 30, the company completed a $600 million tranche of a $1.2 billion share buyback program. The company repurchased 33.1 million shares, representing 3.08% of its issued share capital.
The repurchase is part of the company’s bid to reduce share outstanding and return value to shareholders. While the company plans to cancel all treasury shares repurchased under the program, this move is expected to help improve earnings per share over time.
The repurchase comes as the company has established itself as a leading supplier of steel tubes and related services to the energy industry, as well as for other industrial applications.
Tenaris S.A. (NYSE:TS) is a global manufacturer and supplier of steel pipes and related services, primarily for the energy industry, including the oil and gas sector. The company’s integrated manufacturing process includes steelmaking, pipe rolling, heat treatment, and finishing, with a global network of facilities and services that support customers worldwide.
7. ONEOK, Inc. (NYSE:OKE)
TTM Operating Margin 19.49%
TTM Net Income: $3.09 Billion
Number of Hedge Fund Holders: 44
ONEOK, Inc. (NYSE:OKE) is one of the most profitable energy stocks to buy right now. On September 30, Goldman Sachs resumed coverage of the stock with a ‘Neutral’ rating and a $75 price target. The coverage comes on the company expanding its footprint through acquisitions.
The company has expanded its exposure to Permian oil while also enhancing its refined product pipelines through existing operations in the Bakken, G&P Mid-Con, and Gulf Coast NGLs, achieved through strategic deals with Magellan, EnLink, and Medallion.
According to the investment bank, the acquisitions have added scale and earnings stability and are expected to bolster ONEOK’s growth prospects. Consequently, the company’s valuation will decline from a premium to a modest discount compared to peers. Likewise, Goldman Sachs believes the recent price pullback in the stock could be nearing an end.
ONEOK, Inc. (NYSE:OKE) is a major U.S. energy infrastructure company that operates an extensive network of pipelines and related assets to transport natural gas, natural gas liquids (NGLs), refined products, and crude oil from supply points to demand centers.
6. EOG Resources Inc. (NYSE:EOG)
TTM Operating Margin: 33.81%
TTM Net Income: $5.73 Billion
Number of Hedge Fund Holders: 53
EOG Resources Inc. (NYSE:EOG) is one of the most profitable energy stocks to buy right now. On October 9, analysts at UBS reiterated a ‘Buy’ rating on the stock with a $144 price target following a tour of the company’s facilities in Ohio.
Following the tour, the investment bank remains buoyed by the development of EOG’s Utica operations with the opening of a new division in Columbus, Ohio. The company is expanding its Utica operations following the $5.6 billion acquisition of Encino Energy’s assets.
Likewise, UBS expects the company to meet or exceed the $150 million in synergy targets following the Encino acquisition as it increasingly integrates the assets. Additionally, UBS has echoed the company’s push to use in-house technologies and manufacturing capabilities for motors, drill bits, and production facilities, as they are expected to cut costs.
EOG Resources Inc. (NYSE:EOG) is an oil and natural gas company that explores, develops, and produces crude oil and natural gas. The company has operations primarily in North America (including the Permian Basin, Eagle Ford, and Bakken), as well as in Trinidad and the United Kingdom.
5. Kinder Morgan, Inc. (NYSE:KMI)
TTM Operating Margin: 27.97%
TTM Net Income: $ 2.71Billion
Number of Hedge Fund Holders: 59
Kinder Morgan Inc. (NYSE:KMI) is one of the most profitable energy stocks to buy right now. On October 9, Jefferies initiated coverage of the stock with a ‘Hold’ rating and a $30 price target. The research firm expects the company to benefit from the growing demand for US natural gas.
Consequently, Jefferies expects Kinder Morgan’s adjusted EBITDA to rise by about 5% annually through 2030. The increase will come from the tripling of the natural gas projects backlog since 2022 and the expansion of LNG.
However, the research firm has warned that the current valuation reflects much of the growth at around 10.5 times 2028 EV/EBITDA, versus a 9-times industry average. Nevertheless, the company remains well supported with a strong balance sheet at 3.8 times net debt-to-EBITDA. Consequently, it is well-positioned to fund future growth.
“Kinder Morgan has re-emerged as a late-decade growth story,” but visible catalysts are limited and valuation screens tight, according to Jefferies.
Kinder Morgan Inc. (NYSE:KMI) is an energy infrastructure company focused on transporting and storing energy products through a vast network of pipelines and terminals. Its business involves moving natural gas, gasoline, crude oil, and other products, as well as storing and handling commodities like chemicals, renewable fuels, and more.
4. SLB N.V. (NYSE:SLB)
TTM Operating Margin: 15.79%
TTM Net Income: $4.09 Billion
Number of Hedge Fund Holders: 63
SLB N.V. (NYSE:SLB) is one of the most profitable energy stocks to buy right now. On October 10, SocGen analyst Guillaume Delaby reiterated an ‘Outperform’ rating on the stock but cut the price target to $47.60 from $63.
The price target cut comes amid concerns that the company will pay a price for the slow transition towards New Energies as a medium-term negative. Additionally, the analyst has raised concerns about upcoming results that could impact the stock’s sentiment and trigger a lower valuation.
Consequently, SocGen has reduced its long-term growth rate assumption to 2% from 3.5% owing to adjusted expectations for the ChampionX consolidation. The acquired ChampionX is to be included for just 5 months in 2025, rather than 9 months as in previous models.
SLB N.V. (NYSE:SLB) is a global technology company that provides technology and services for the energy industry, focusing on both the production and recovery of oil and gas, and the transition to new energy sources. Its work includes developing and deploying technologies to make energy production more efficient and sustainable, and helping customers reduce emissions while meeting global energy demands.
3. ConocoPhillips (NYSE:COP)
TTM Operating Margin: 21.98%
TTM Net Income: $9.16 Billion
Number of Hedge Fund Holders: 72
ConocoPhillips (NYSE:COP) is one of the most profitable energy stocks to buy right now. On October 13, analysts at RBC Capital reiterated an ‘Outperform’ rating on the stock and raised the price target to $118 from $113.
The price target hike comes as the research firm expects the energy giant to deliver earnings per share and cash flow per share above the company’s guidance. RBC Capital expects EPS to range between $1.35 and $1.40 a share with cash flow of $5.2 billion.
While the company is expected to release its 2026 guidance early next year, RBC Capital expects it to project organic growth of 1% to 2%. It also expects capital expenditure to average $12 billion with $8.5 billion in shareholders’ return.
ConocoPhillips (NYSE:COP) is a global exploration and Production Company that finds, develops, and produces oil and natural gas. Its activities include exploring for new resources, maximizing production, and responsibly developing energy sources worldwide. The company produces and markets crude oil, natural gas, natural gas liquids, and liquefied natural gas.
2. The Williams Companies, Inc. (NYSE:WMB)
TTM Operating Margin: 30.30%
TTM Net Income: $2.43 Billion
Number of Hedge Fund Holders: 78
The Williams Companies, Inc. (NYSE:WMB) is one of the most profitable energy stocks to buy right now. On October 1, the company announced plans to invest $3.1 billion to enhance its power generation capacity. The transaction is expected to close in the first half of 2027.
The push is part of the energy giant’s bid to capitalize on growing demand for energy needed to power data centers. Power demand and consumption are expected to reach record highs in 2025 and 2026, driven by the rapid growth of artificial intelligence.
The new $3.1 billion investment will bring the company’s total to $5 billion, which the company is using to enhance its power innovation projects. Consequently, Williams Companies plans to raise its 2025 capital spending plan by $875 million to between $3.45 billion and $3.75 billion in 2025.
The Williams Companies, Inc. (NYSE:WMB) is an energy infrastructure company focused on owning and operating infrastructure for the gathering, processing, transportation, and delivery of natural gas and natural gas liquids (NGLs) across the United States. It provides midstream services, moving energy from production sites to processing facilities and then to end markets.
1. Cheniere Energy, Inc. (NYSE:LNG)
TTM Operating Margin: 27.76%
TTM Net Income: $3.84 Billion
Number of Hedge Fund Holders: 79
Cheniere Energy, Inc. (NYSE:LNG) is one of the most profitable energy stocks to buy right now. On October 8, Goldman Sachs reiterated a ‘Buy’ rating on the stock and raised the price target to $280 from $265. The price hike comes amid expectations that the company will deliver solid third-quarter results, strengthening the stock’s market sentiment.
The investment bank expects the company to post EBITDA of $1.62 billion, slightly above its previous estimate of $1.60 billion. The company’s EBITDA over the last 12 months stands at $3.86 billion, backed by 10.6% revenue growth.
While the company experienced lower inlet gas flows at Corpus Christi following plant downtime, Goldman Sachs is confident that better-optimized assumptions offset the impact of marked-to-market commodity prices. Likewise, it expects Cheniere Energy to benefit from sequential improvements expected to trigger lower maintenance impacts.
Cheniere Energy, Inc. (NYSE:LNG) is a leading U.S. producer and exporter of liquefied natural gas (LNG). The company’s core business is liquefying natural gas for export, and it operates major facilities such as the Sabine Pass LNG terminal and the Corpus Christi LNG facility. It acts as a full-service LNG provider, handling gas procurement, transportation, liquefaction, and delivery to customers worldwide.
While we acknowledge the potential of Cheniere Energy, Inc. (NYSE:LNG) 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 LNG and that has 100x upside potential, check out our report about this cheapest AI stock.
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