In this article, we are going to discuss the best-performing energy stocks in 2025.
2025 has been a challenging year for the energy sector. As of the writing of this piece, the S&P Energy index has surged by almost 2.7% since the beginning of the year, far behind the 18% gains posted by the overall S&P 500. The decline is driven primarily by the more than 21% decline in global crude oil prices since the beginning of 2025, mainly due to oversupply concerns.
That said, several sub-sectors of the energy industry have witnessed significant growth this year, including natural gas. The AI boom and its power-hungry data centers have pushed electricity demand to record levels in the US, and natural gas has emerged as a leading candidate to meet this demand, since it is relatively cleaner, cheaper, and abundant. As a result, U.S. natural gas futures have gained more than 21% so far this year. The commodity has also received strong support from the booming LNG sector, with American LNG exports reaching record levels so far in 2025.
Another sector that is back in the spotlight this year is nuclear energy, especially after President Trump signed an executive order in May to increase the US nuclear energy capacity to 400 GW by 2050. The sector has also attracted substantial attention from Silicon Valley, with several tech giants signing long-term deals to ensure sufficient energy to power their cutting-edge advances in AI while also meeting their climate goals.
With that said, here are the best-performing energy stocks of the year 2025.
Our Methodology
To collect data for this article, we used multiple stock screeners to identify energy stocks that posted the highest gains between January 1, 2025, and December 26, 2025. To keep our list relevant, we have included only companies with a market capitalization of at least $1.5 billion. The following are the best performing energy stocks in 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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
11. Comstock Resources, Inc. (NYSE:CRK)
YTD Gains as of December 26: 25.94%
Comstock Resources, Inc. (NYSE:CRK) is a leading independent natural gas producer with operations focused on the development of the Haynesville shale in North Louisiana and East Texas.
On December 12, UBS increased its price target on Comstock Resources, Inc. (NYSE:CRK) from $16 to $18, while keeping a ‘Sell’ rating on the shares. On the same day, Mizuho also raised its price target on CRK from $21 to $29, and maintained a ‘Neutral’ rating on the shares. The update came as the analyst firm revised its ratings and targets as part of its 2026 outlook. While the overall sentiment toward the American oil and gas sector is negative, the analyst believes that the group still offers ‘underappreciated value’, particularly in E&P companies, which could begin to be realized next year.
As of the writing of this piece, Comstock Resources, Inc. (NYSE:CRK) has surged by almost 26% since the beginning of 2025, driven partially by a sharp uptick in the natural gas prices this year. U.S. natural gas futures have gained more than 21% so far this year, supported by record growth in the country’s LNG exports and strong power demand from AI data centers. Moreover, Comstock has surpassed estimates in all three quarters so far this year, adding to the bullish sentiment surrounding the stock.
10. Imperial Oil Limited (NYSEAMERICAN:IMO)
YTD Gains as of December 26: 36.87%
Imperial Oil Limited (NYSEAMERICAN:IMO) produces high-quality fuels, lubricants, and chemical products marketed under the Esso and Mobil brands.
On December 16, TD Securities slightly lowered its price target on Imperial Oil Limited (NYSEAMERICAN:IMO) from C$107 to C$106, but maintained a ‘Sell’ rating on the shares. IMO received a blow also earlier on December 15 when BMO Capital downgraded the stock from ‘Outperform’ to ‘Market Perform’, with its price target trimmed from C$132 to C$129. According to the analyst, while Imperial boasts one of the strongest financial positions, it offers limited short-term upside potential, and several industry peers offer more attractive relative value to investors.
The cautious analyst outlook comes despite Imperial Oil Limited (NYSEAMERICAN:IMO) announcing plans to increase its FY 2026 capital spending on December 15. While many oil companies have been tightening spending amid a slump in oil prices, Imperial is targeting C$2 billion-C$2.2 billion in capital and exploration expenditures for 2026, up from the C$1.9 billion-C$2.1 billion range it estimates to spend in the current year.
As a result, Imperial Oil Limited (NYSEAMERICAN:IMO) expects its upstream production to be in the range of 441,000 to 460,000 boepd next year, compared with 433,000 to 456,000 boepd projected for 2025. However, refinery throughput is forecast at 395,000 – 405,000 barrels per day in 2026, down from 405,000 – 415,000 bbl/day expected this year, due to the planned turnaround activity at the company’s Sarnia and Strathcona refineries.
Hedge Fund Resource Center