In this article, we will discuss the 11 Best Oil and Gas Stocks to Buy According to Analysts
The US Energy Information Administration, in its Short-Term Energy Outlook, highlighted that it expects increases in well productivity to push the US crude oil production to an all-time high near 13.6 million b/d in December 2025. That being said, as the crude oil prices decline, it anticipates the US producers to accelerate the decreases in drilling and well completion activity, which were ongoing through most of the year.
What Lies Ahead?
The US Energy Information Administration expects the US crude oil production to decline to 13.1 million b/d by Q4 2026. On an annual basis, it forecasts that the crude oil production will average 13.4 million b/d in 2025 and 13.3 million b/d in 2026. The lower crude oil prices push down the retail prices for petroleum products in the firm’s forecast. It projects that the price for retail gasoline throughout the US to average less than $2.90 per gallon (gal) next year, about 20 cents/gal (6%) less than this year.
Amidst these forecasts, we will now have a look at the 11 Best Oil and Gas Stocks to Buy According to Analysts.
Our Methodology
To list the 11 Best Oil and Gas Stocks to Buy According to Analysts, we used a screener to shortlist the stocks catering to the broader oil and gas landscape. Next, we chose the ones popular among hedge funds, and in which analysts see upside to. Finally, the stocks are arranged in ascending order of their hedge fund sentiments, as of Q2 2025.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
11 Best Oil and Gas Stocks to Buy According to Analysts
11. Matador Resources Company (NYSE:MTDR)
Number of Hedge Fund Holders: 39
Average Upside Potential: ~24%
Matador Resources Company (NYSE:MTDR) is one of the Best Oil and Gas Stocks to Buy According to Analysts. On September 3, KeyBanc reduced the price objective on the company’s stock to $61 from $62, while keeping an “Overweight” rating, as reported by The Fly. As per the firm, its updated estimates showcase the firm’s revised natural gas price forecast. Additionally, the firm has increased the capitalized G&A and interest expenses in order to account for the recent upward trends. However, in Q2 2025, Matador Resources Company (NYSE:MTDR) saw record quarterly production of 209,013 barrels of oil and natural gas equivalent per day (BOE/d), including 122,875 barrels of oil per day (Bbl/d).
Matador Resources Company (NYSE:MTDR)’s integrated upstream and midstream business garnered net cash provided by operating activities of $501 million and adjusted FCF of $133 million, reflecting an industry-leading FCF margin. In H2 2025 and into 2026, Matador Resources Company (NYSE:MTDR) anticipates continuing to increase its 10 to 15 years of quality Delaware Basin inventory and to enhance its asset positions in the key asset areas to fuel growth and profitability.
10. Coterra Energy Inc. (NYSE:CTRA)
Number of Hedge Fund Holders: 45
Average Upside Potential: ~33.3%
Coterra Energy Inc. (NYSE:CTRA) is one of the Best Oil and Gas Stocks to Buy According to Analysts. On August 18, Roth Capital reduced the price objective on the company’s stock to $27 from $32, while maintaining a “Buy” rating, as reported by The Fly. The firm downgraded several gas stocks and reduced the targets on others, noting that Henry Hub natural gas prices are expected to remain challenged well into 2026 because of oversupply conditions.
Furthermore, the firm doesn’t expect gas prices to significantly improve till the supply growth is constrained. Therefore, it expects weak supply/demand fundamentals for the gas-exposed companies. However, on the positive side, Coterra Energy Inc. (NYSE:CTRA) saw strong capital efficiency in Q2 2025, thanks to the lower-than-expected capital expenditures and higher-than-expected production. Coterra Energy Inc. (NYSE:CTRA) expects to run consistent activity in H2 2025, with 9 rigs in the Permian, 2 rigs in the Marcellus, and 1 to 2 rigs in the Anadarko.
Coterra Energy Inc. (NYSE:CTRA)’s high-quality assets offer strong returns in the current environment and are durable through the cycles.
9. Diamondback Energy, Inc. (NASDAQ:FANG)
Number of Hedge Fund Holders: 46
Average Upside Potential: ~21.2%
Diamondback Energy, Inc. (NASDAQ:FANG) is one of the Best Oil and Gas Stocks to Buy According to Analysts. On August 25, William Blair analyst Neal Dingmann began coverage of the company’s stock with an “Outperform” rating, as reported by The Fly. As per the analyst, Diamondback Energy, Inc. (NASDAQ:FANG)’s robust FCF as well as healthy financials offer capital allocation options, such as share buybacks. The company reported that its total Q2 2025 return of capital came in at $691 million, which represents ~52% of adjusted FCF from stock repurchases and the declared Q2 2025 base dividend.
During Q2 2025, Diamondback Energy, Inc. (NASDAQ:FANG) turned 108 operated wells to production in the Midland Basin and 8 gross wells in the Delaware Basin, with an average lateral length of 13,402 feet. Its FCF amounted to $1.2 billion, while adjusted FCF came in at $1.3 billion.
Diamondback Energy, Inc. (NASDAQ:FANG) also announced that its wholly-owned subsidiaries entered into a definitive agreement to sell 27.5% equity interest in EPIC Crude Holdings, LP to a wholly-owned subsidiary of Plains All American Pipeline, L.P. and Plains GP Holdings for ~$500 million in net upfront cash as well as further additional $96 million contingent cash payment due if the capacity expansion of EPIC Crude will get formally sanctioned before year-end 2027. Artisan Partners, an investment management company, released its Q2 2025 investor letter. Here is what the fund said:
“Our energy holdings Schlumberger and Diamondback Energy, Inc. (NASDAQ:FANG) were key detractors. Unlike most equity sectors that recovered a significant proportion of their early-April declines after reciprocal tariffs were paused, the rebound among energy stocks was muted. The sector has been held back by falling oil prices as concerns about the impact of tariffs and general macro uncertainty on oil demand drove the price of WTI crude oil below $60 in May, its lowest level in four years. Oil prices have generally been trending down since 2022. While we understand the short-term concerns weighing on the sector, our interest remains on the long-term economics and valuations of our individual portfolio companies. Diamondback Energy, which we purchased in Q42024, is an oil and gas producer operating in the Permian Basin of the southwestern US. When investing in oil and gas exploration and production companies, we are highly selective. Not only do producers have no control over the underlying commodity prices, but they frequently prioritize capital expenditures over cash flow. Diamondback’s core operating philosophy is that the low-cost producer in a commodity market wins. Diamondback has a strong cost profile that is primarily the result of a contiguous, high-quality acreage position in the Permian Basin. The company’s culture supplements the acreage position with drilling discipline and conservative business plans. Our thesis is simple: Diamondback is an efficient Permian operator committed to a strong balance sheet and shareholder distributions.”
8. Permian Resources Corporation (NYSE:PR)
Number of Hedge Fund Holders: 49
Average Upside Potential: ~30.9%
Permian Resources Corporation (NYSE:PR) is one of the Best Oil and Gas Stocks to Buy According to Analysts. On August 25, William Blair initiated coverage on the company’s stock with a “Buy” rating. The firm’s rating is backed by a combination of factors that showcase Permian Resources Corporation (NYSE:PR) as a high-quality mid-cap exploration and production company. It has exhibited efficient operations with a healthy balance sheet and has been successful in strategically growing the assets, added the firm analyst.
Furthermore, the firm believes that Permian Resources Corporation (NYSE:PR) possesses a low breakeven cost and high FCF per barrel, indicating its operational efficiency and financial health. Permian Resources Corporation (NYSE:PR) maintains a healthy FCF position, helping a sustainable dividend and stock repurchase program. With several potential growth catalysts and valuation suggesting room for upside, the firm sees the company as a compelling investment opportunity. In Q2 2025, the company declared a base dividend of $0.15 per share and announced cash capital expenditures of $505 million.
Artisan Partners, an investment management company, released its Q1 2025 investor letter. Here is what the fund said:
“We made one new purchase this quarter, adding Permian Resources Corporation (NYSE:PR), an independent oil and gas company. PR is focused solely on the Delaware Basin of West Texas and southwestern New Mexico—the most prolific oil-producing region in the US. The founders and co CEOs, who also have large ownership interests in the business, have sought to build a business that can produce substantial free cash flow, return capital to shareholders and generate attractive equity returns across varied commodities price environments. To achieve these goals, PR has pursued best-in-class operations and responsible capital stewardship by thoughtfully acquiring assets it believes are undervalued and divesting acreage it believes would be better in someone else’s hands, while meaningfully returning capital to shareholders in the form of dividends. We always seek to align ourselves with shareholder-oriented management teams, but this is even more critical when investing in mid-sized energy companies given their dependence on the underlying commodity prices and minimal diversification by business and geography as well as the sector’s general predilection for reinvesting capital for growth rather than returns. Shares were rangebound for much of 2024 as macro fears have weighed on oil prices and energy sector stocks, giving us an opportunity to purchase a strong operator at a favorable price.”
7. EOG Resources, Inc. (NYSE:EOG)
Number of Hedge Fund Holders: 53
Average Upside Potential: ~13%
EOG Resources, Inc. (NYSE:EOG) is one of the Best Oil and Gas Stocks to Buy According to Analysts. On August 20, UBS analyst Josh Silverstein lifted the price objective on the company’s stock to $144 from $142, while keeping a “Buy” rating, as reported by The Fly. As per the analyst, persistent commodity headwinds have been dampening upside potential. Elsewhere, EOG Resources, Inc. (NYSE:EOG) highlighted that the expansion of its portfolio via Encino acquisition, the entry into Bahrain and the UAE, and robust exploration progress throughout its domestic portfolio and in Trinidad, significantly improved its industry-leading asset base.
EOG Resources, Inc. (NYSE:EOG) continues to improve its resource base while, at the same time, it has been maintaining one of the strongest balance sheets in the broader industry. EOG Resources, Inc. (NYSE:EOG)’s multi-basin portfolio, operational excellence, and financial strength offer the unmatched flexibility to provide increased returns and significant cash return to shareholders through commodity price cycles.
6. Ovintiv Inc. (NYSE:OVV)
Number of Hedge Fund Holders: 55
Average Upside Potential: ~28.6%
Ovintiv Inc. (NYSE:OVV) is one of the Best Oil and Gas Stocks to Buy According to Analysts. On August 18, Morgan Stanley analyst Devin McDermott downgraded the company’s stock to “Equal Weight” from “Overweight” with a price objective of $48, down from the prior target of $52, as reported by The Fly. Notably, the firm has been shifting to a more defensive stance in oil exploration and production after the outperformance of stocks relative to oil. The downgrade comes after the outperformance of Ovintiv Inc. (NYSE:OVV)’s stock against oil exploration and production peers, which the firm believes was because of healthy execution and capital efficiency improvements.
Ovintiv Inc. (NYSE:OVV)’s Q2 2025 production remained above guidance range on every product, with average total production volumes of 615 thousand barrels of oil equivalent per day (MBOE/d). Furthermore, the company reduced net debt by $217 million during Q2 2025 to ~$5.31 billion. Ovintiv Inc. (NYSE:OVV) stated that robust well performance throughout the portfolio, rapid integration of its new Montney assets, and enhanced capital efficiency allowed it to reduce its expected 2025 capital investment and operating costs.
5. Range Resources Corporation (NYSE:RRC)
Number of Hedge Fund Holders: 55
Average Upside Potential: ~27.0%
Range Resources Corporation (NYSE:RRC) is one of the Best Oil and Gas Stocks to Buy According to Analysts. On August 20, UBS reduced the price target on the company’s stock to $40 from $42, while keeping a “Neutral” rating, as reported by The Fly. The analyst noted the continuous headwinds, which are impacting the upside potential. On the positive side, Range Resources Corporation (NYSE:RRC) saw efficiency gains and consistent well performance in Q2 2025, which helped in driving healthy FCF and building operational momentum. Its financial results helped $74 million in share repurchases and dividends, while reducing the net debt to $1.2 billion.
Its GAAP revenues and other income for Q2 2025 came in at $856 million, while GAAP net cash provided from operating activities stood at $336 million. Range Resources Corporation (NYSE:RRC) remains well-positioned to benefit while in-basin demand opportunities materialize along with a global call on natural gas. The company remains one of the few producers in Appalachia possessing enough high-quality inventory to help the required growth in baseload supply. Range Resources Corporation (NYSE:RRC)’s continued efficiencies are being aided by its countercyclical investments in drilled inventory and consistent well results.
Riverwater Partners, an investment management company, released its Q1 2025 investor letter. Here is what the fund said:
“During the quarter, we increased our exposure to the energy transition by adding Range Resources Corporation (NYSE:RRC) and Antero Midstream Corp (AM) to our portfolio. Both companies play critical roles in energy and electrification. Electrification is expected to see significant demand growth in the coming years and decades.
Range is a low-cost producer with a track record of strong and evolving efforts in responsible business practices and capital allocation. Range has 30 plus years of high-quality inventory, a balance sheet levered below 1x debt to EBITDAX, and trades at a 10% free cash flow yield.”
4. Devon Energy Corporation (NYSE:DVN)
Number of Hedge Fund Holders: 58
Average Upside Potential: ~21.6%
Devon Energy Corporation (NYSE:DVN) is one of the Best Oil and Gas Stocks to Buy According to Analysts. On August 25, William Blair initiated coverage on the company’s stock with a “Buy” rating. The firm’s rating is backed by a combination of factors demonstrating the company’s healthy financial and operational position. Devon Energy Corporation (NYSE:DVN)’s strategic asset management, as well as active midstream marketing, supports its financial health.
Devon Energy Corporation (NYSE:DVN) possesses a high shareholder return rate, thanks to the strong balance sheet, according to the firm’s analyst. In Q2 2025, the company achieved production of 841,000 oil equivalent production (Boe) per day, surpassing the top-end of its guidance. Devon Energy Corporation (NYSE:DVN)’s business optimization plan continues to progress rapidly, placing it to achieve $1 billion in annual pre-tax FCF by 2026 end. For the second consecutive quarter, the company reduced its 2025 capital by $100 million while raising production forecasts, further enhancing its FCF trajectory.
For FY 2025, the company expects its oil production to be in the range of 384,000 – 390,000 barrels per day.
3. ConocoPhillips (NYSE:COP)
Number of Hedge Fund Holders: 72
Average Upside Potential: ~18%
ConocoPhillips (NYSE:COP) is one of the Best Oil and Gas Stocks to Buy According to Analysts. On August 20, Melius Research began coverage of the company’s stock with a “Hold” rating and a price objective of $117, as reported by The Fly. As per the firm’s analyst, the introduction, adoption, and acceleration of AI transformed Energy & Power into an AI category. Notably, the broader market remains in its early stages of a Power revolution, which is only in the early innings of shifting leadership towards a new group of winners.
In Q2 2025, ConocoPhillips (NYSE:COP) delivered healthy results financially, operationally, and strategically. It completed the Marathon Oil integration and is on track to deliver over $1 billion in synergies and more than $1 billion of one-time benefits. ConocoPhillips (NYSE:COP) has been leveraging its scale and technologies to drive a further $1 billion-plus in cost reductions and margin enhancements by 2026 end. Such efforts are expected to strengthen its FCF generation, allowing it to continue delivering healthy returns on and of capital.
Cullen Capital Management, LLC, operating under the name Schafer Cullen Capital Management, Inc. (SCCM), released its Q2 2025 investor letter. Here is what the fund said:
“ConocoPhillips (NYSE:COP) – The stock was purchased in the strategy during the quarter. ConocoPhillips is a leading independent exploration and production company with a global portfolio of low-cost, high-return assets and a disciplined capital allocation strategy. The company is approaching a free cash flow inflection as capital spending on major long-cycle projects begins to roll off in 2H25, improving its ability to return capital to shareholders. Management targets returning approximately 45% of operating cash flow through dividends and buybacks, supported by efficiency gains and a strong balance sheet. COP trades at 14.4x 2025 EPS and offers an ~8% capital return yield, presenting an attractive entry point amid a constructive long-term oil backdrop.”
2. Expand Energy Corporation (NASDAQ:EXE)
Number of Hedge Fund Holders: 93
Average Upside Potential: ~39.2%
Expand Energy Corporation (NASDAQ:EXE) is one of the Best Oil and Gas Stocks to Buy According to Analysts. On August 14, Piper Sandler reduced the price target on the company’s stock to $136 from $140 while keeping an “Overweight” rating, as reported by The Fly. As per the firm, it has been a challenging investing environment in E&P to say the least. Furthermore, the analyst believes that the gas equities had been a relatively safe haven on near-term LNG capacity adds as well as demand stemming from power/data center. However, supply has been surprising to the upside despite reduced associated activity levels.
The firm also noted that there were some positives out of Q2, with operators driving efficiencies, resulting in lower capex to bring the same output. Also, the tax legislation in the “One Big Beautiful Bill” continues to drive incremental FCF across the group, or at least has been mitigating the weaker commodity strip. Considering the significant operational efficiency gains recognized via its integration efforts, Expand Energy Corporation (NASDAQ:EXE) remains on track to capture ~$500 million in annual synergies in 2025. Expand Energy Corporation (NASDAQ:EXE) expects to ultimately achieve $600 million in annual synergies by 2026 end.
1. EQT Corporation (NYSE:EQT)
Number of Hedge Fund Holders: 96
Average Upside Potential: ~25%
EQT Corporation (NYSE:EQT) is one of the Best Oil and Gas Stocks to Buy According to Analysts. On August 22, Kalei Akamine from Bank of America Securities reiterated a “Buy” rating on the company’s stock, increasing the price objective to $80.00 from the prior target of $63.00. The analyst’s rating is backed by a combination of factors demonstrating EQT Corporation (NYSE:EQT)’s strategic advantages and growth potential. As per the analyst, the company remains well-placed to cater to the high supply demands of large datacenters, due to its extensive midstream infrastructure, which helps in seamless logistics.
This capability allowed EQT Corporation (NYSE:EQT) to secure valuable gas supply agreements, contributing to its cash flow and FCF projections. Also, the company’s cash flow profile remains stable. This stability, along with a strategic emphasis on datacenter deals, positions EQT Corporation (NYSE:EQT) to capitalize on unique growth opportunities, added Akamine. The company continues to see strong momentum for in-basin natural gas power as well as data center demand. It remains uniquely positioned to capitalize on this setup, thanks to its production scale, inventory duration, integrated infrastructure, investment-grade credit ratings, and low emissions credentials.
Scout Investments, Inc., an affiliate of Carillon Tower Advisers, released its Q1 2025 investor letter. Here is what the fund said:
“EQT Corporation (NYSE:EQT) is an integrated energy company with an emphasis on upstream and midstream natural gas operations in Pennsylvania. The company’s natural gas production costs are among the lowest in the country. Natural gas producers benefitted from a colder than anticipated winter, draining natural gas storage to levels well below the 5-year average. Demand is expected to grow rapidly in the coming years, but suppliers like EQT are not adding rigs and storage is starting from a low point.”
While we acknowledge the potential of EQT to grow, 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 EQT and that has 100x upside potential, check out our report about this cheapest AI stock.
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