10 Most Undervalued Energy Stocks to Buy According to Hedge Funds

7. EOG Resources, Inc. (NYSE:EOG)

No. of Hedge Fund Holders: 62

Forward P/E Ratio as of May 2: 11.7

Next on our list of the Best Undervalued Energy Stocks is EOG Resources, Inc. (NYSE:EOG), one of the largest crude oil and natural gas exploration and production companies in the United States with proved reserves in the US and Trinidad.

EOG Resources, Inc. (NYSE:EOG) beat profit estimates in Q1 2025, benefiting from higher natural gas prices and production. The company’s adjusted EPS of $2.87 topped expectations by $0.1. However, its revenue fell by 7.41% YoY to $5.67 billion and fell short of estimates by $182 million. EOG earned $1.6 billion in adjusted net income and generated $1.3 billion in free cash flow during the quarter. Staying true to its strong commitment to shareholders, the company returned these $1.3 billion in the form of dividends and share repurchases. The energy firm declared a quarterly cash dividend of $0.975 per share this month and currently boasts an annual dividend yield of 3.52%.

The total quarterly production of EOG Resources, Inc. (NYSE:EOG) rose 4.8% to 98.1 million barrels of oil equivalent (MMBoe) in Q1. The company has revealed that it is planning to reduce its capital expenditure plan for the year by $200 million due to tariff uncertainty, while still delivering approximately 2% YoY oil growth and a 5% YoY surge in overall production.