On January 15, CNBC reported that energy markets have seen sharp swings in recent days as investors react to a violent crackdown on civil unrest in Iran and how the US may respond to this situation.
Worries increased after reports suggested the possibility of military action by the US against Iran. This came after the seizure of the president of Venezuela, another oil-rich country, which added uncertainty in global energy markets.
Earlier in the week, oil prices climbed to multi-month highs following reports that the US and the UK were pulling personnel from a military base in Qatar. This led to speculation that a strike on Iran could be imminent. However, prices dropped on Thursday, January 15, after President Trump stepped back from the threat of immediate action.
Marc Ostwald, chief economist and global strategist at ADM Investor Services in London, told CNBC that traders are preparing for continued volatility. He said:
“Oil markets are very much subject to two opposing forces, and the overall profile of supply outpacing demand … leaving the market trading oil from the short side.”
Marc Ostwald, chief economist and global strategist at ADM Investor Services in London, told CNBC that traders are preparing for continued volatility. He said oil markets are being pulled in two opposite directions, with supply expected to grow faster than demand, which has kept many investors positioned on the short side of the market.
Paul Jackson, global market strategist for EMEA at Invesco, told CNBC that he expects oil prices could find support from an accelerating global economy in 2026. However, he pointed out that “geopolitical developments are difficult to predict and can rapidly change course.”
With this background in mind, let’s take a look at the 12 best American energy stocks to buy now.
Our Methodology
To compile our list of the 12 best American energy stocks to buy now, we used stock screeners from Finviz and Yahoo Finance to find the largest American energy companies. We sorted our results based on market capitalization and picked the top 40 American stocks. Next, we focused on the top 12 stocks most favored by institutional investors. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q3 2025 database of 978 elite hedge funds. Finally, the 12 best American energy stocks to buy now were ranked in ascending order based on the number of hedge funds holding stakes in them as of Q3 2025.
Why do we care about what hedge funds do? 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).
12 Best American Energy Stocks to Buy Now
12. EOG Resources, Inc. (NYSE:EOG)
Number of Hedge Fund Holders: 61
EOG Resources, Inc. (NYSE:EOG) is one of the best American energy stocks to buy now. On January 16, KeyBanc downgraded its rating on EOG Resources, Inc. (NYSE:EOG) from Overweight to Sector Weight. KeyBanc pointed to worries about “clear signs of degradation” in both the Eagle Ford and Delaware Basin assets, along with a major drop in activity in Eagle Ford.
KeyBanc analyst Tim Revzan noted that production trends can be affected by flow dynamics from extra-large (XL) laterals in the first six to twelve months. The firm believes that productivity concerns in EOG Resources, Inc.’s (NYSE:EOG) Texas-based assets justify a cautious view on the stock.
Despite this, KeyBanc is positive on the company’s Utica asset. The research firm believes that EOG Resources, Inc. (NYSE:EOG) is “slowly reinventing itself” by developing its Utica and Dorado assets and through its international exploration efforts.
Earlier, on January 13, RBC Capital also reduced its price target on EOG Resources, Inc. (NYSE:EOG) from $145 to $138 and kept its Outperform rating. This reflects the firm’s updated commodity price outlook, especially for oil.
RBC Capital now expects WTI crude oil prices to be $56.00 per barrel in 2026, down from its earlier forecast of $60.06 per barrel.
EOG Resources, Inc. (NYSE:EOG) is one of the largest American crude oil and natural gas exploration and production companies with proven reserves in the US and Trinidad.
11. Occidental Petroleum Corporation (NYSE:OXY)
Number of Hedge Fund Holders: 62
Occidental Petroleum Corporation (NYSE:OXY) is one of the best American energy stocks to buy now. On January 16, Scotiabank slightly reduced its price target on Occidental Petroleum Corporation (NYSE:OXY) from $47 to $46 and maintained its Sector Perform rating on the stock. This change came as part of the firm’s update of price targets for US integrated oil companies, refining companies, and large-cap exploration and production companies under its coverage.
Scotiabank believes quarterly earnings will be straightforward as there were no major winter weather disruptions. Looking ahead, the research firm noted that investors are likely to focus on whether recent market volatility will lead companies to change their 2026 guidance. The firm also pointed out that attention may be on whether any exploration and production companies will introduce cost-cutting programs.
Previously, on January 2, Occidental Petroleum Corporation (NYSE:OXY) reported that it completed the sale of OxyChem, its chemical business, to Berkshire Hathaway for $9.7 billion. The company expects this deal will support its strategy to strengthen its balance sheet and improve its focus on its diverse oil and gas portfolio.
Occidental Petroleum Corporation (NYSE:OXY) is an American multinational energy company with assets primarily in the United States, the Middle East, and North Africa. The company is one of the largest oil and gas producers in the US.
10. Kinder Morgan, Inc. (NYSE:KMI)
Number of Hedge Fund Holders: 65
Kinder Morgan, Inc. (NYSE:KMI) is one of the best American energy stocks to buy now. On January 16, Scotiabank increased its price target on Kinder Morgan, Inc. (NYSE:KMI) from $27 to $29 and maintained its Sector Perform rating on the stock.
The research firm updated its price targets for energy infrastructure companies under its coverage. Scotiabank pointed out that strong power demand and LNG exports are creating new opportunities for the sector. This led the firm to see an upward bias in its long-term outlook for the sector.
Previously, on December 12, UBS reiterated its Buy rating on Kinder Morgan, Inc. (NYSE:KMI) with a $38 price target. The firm pointed to better-than-expected contributions from natural gas pipelines.
UBS raised its Q4 2025 EBITDA estimate for Kinder Morgan, Inc. (NYSE:KMI) from $2.192 billion to $2.226 billion. This new forecast is about $15 million higher than the market consensus of $2.211 billion. The research firm cited colder weather and continued strength as key reasons for its positive outlook.
Kinder Morgan, Inc. (NYSE:KMI) is one of the largest energy infrastructure companies in North America. It owns and operates pipelines and terminals that transport natural gas, gasoline, crude oil, and other products.
9. Antero Resources Corporation (NYSE:AR)
Number of Hedge Fund Holders: 70
Antero Resources Corporation (NYSE:AR) is one of the best American energy stocks to buy now. On January 15, Benchmark reiterated its Hold rating on Antero Resources Corporation (NYSE:AR) after the company announced a debt issuance to partially fund an acquisition.
Benchmark noted that the company issued $750 million in aggregate principal amount of 5.40% senior unsecured notes due 2036. Antero Resources Corporation (NYSE:AR) plans to use the net proceeds from the offering to fund its $2.8 billion acquisition of HG Energy II. According to Benchmark, the company intends to fund half of the acquisition price through this debt issuance and the divestiture of its Ohio Utica Shale upstream assets for $800 million.
The rest of the purchase price will be financed through a three-year term loan of $1.5 billion. The research firm believes that Antero Resources Corporation (NYSE:AR) should be able to repay this term loan by the end of 2027. This points to a defined path toward reducing debt after this major acquisition.
Earlier, on January 7, Barclays also reiterated its Hold rating on Antero Resources Corporation (NYSE:AR) with a price target of $46 on the stock.
Antero Resources Corporation (NYSE:AR) is an independent natural gas and natural gas liquids company operating in the Appalachian Basin in West Virginia. It is a major supplier of liquified natural gas (LNG) in the US.
8. SLB N.V. (NYSE:SLB)
Number of Hedge Fund Holders: 70
SLB N.V. (NYSE:SLB) is one of the best American energy stocks to buy now. On January 15, RBC Capital increased its price target on SLB N.V. (NYSE:SLB) from $43 to $51 and maintained its Outperform rating. This update came as the firm previewed Q4 for oil and gas services companies.
The research firm noted that stocks under its coverage have gained about 23% since November, which may make it difficult for earnings and outlooks to meet current market expectations. However, RBC Capital still expects stable earnings trends across the group and believes valuations are mostly attractive.
Earlier, on January 6, Evercore ISI upgraded its rating on SLB N.V. (NYSE:SLB) from In Line to Outperform and raised its price target from $38 to $54. The firm’s analyst, Stephen Richardson, noted that the company’s outlook is “much clearer than it has been in 2+ years” after the company implemented strategic changes.
Evercore ISI pointed to SLB N.V.’s (NYSE:SLB) recent acquisition of ChampionX and its reduced exposure to APS through the Palliser exit. The research firm noted that these moves have “reduced the overall risk profile of the enterprise.”
Headquartered in Houston, Texas, United States, SLB N.V. (NYSE:SLB) is a global oilfield services company. With a presence in over 100 countries, the company offers technology, information solutions, and integrated project management services that optimize reservoir performance.
7. ConocoPhillips (NYSE:COP)
Number of Hedge Fund Holders: 72
ConocoPhillips (NYSE:COP) is one of the best American energy stocks to buy now. On January 16, BofA Securities downgraded its rating on ConocoPhillips (NYSE:COP) from Neutral to Underperform with a price target of $102. BofA analyst Kalei Akamine pointed to worries about the company’s relatively high oil breakeven price than competitors.
BofA believes that ConocoPhillips (NYSE:COP) needs oil prices of around $53 of WTI to cover its capital spending and dividend payments, which the research firm sees as “materially higher” when compared to its peers. BofA also noted that the company’s debt-adjusted free cash flow yield of just 4.4% is “uncompetitive within the peer group.”
The investment firm believes these pressures are partly linked to the long-cycle investments by ConocoPhillips (NYSE:COP) in Port Arthur LNG and Willow projects, which are still two and four years away from beginning operations, respectively.
On January 13, JPMorgan reduced its price target on ConocoPhillips (NYSE:COP) from $102 to $98 and maintained its Overweight rating on the stock.
Earlier, on January 8, Piper Sandler also cut its price target on ConocoPhillips (NYSE:COP) from $115 to $109 but kept its Overweight rating.
ConocoPhillips (NYSE:COP) is an American energy company that ranks among the world’s largest independent oil and gas exploration and production companies based on production and proved reserves.
6. The Williams Companies, Inc. (NYSE:WMB)
Number of Hedge Fund Holders: 73
The Williams Companies, Inc. (NYSE:WMB) is one of the best American energy stocks to buy now. On January 12, UBS reiterated its Buy rating on The Williams Companies, Inc. (NYSE:WMB) with a price target of $78 as the company makes progress on two of its key pipeline projects.
UBS analyst Manav Gupta noted that the Northeast Supply Enhancement (NESE) project has obtained key water permits but is still waiting for air permits. The Williams Companies, Inc. (NYSE:WMB) is aiming to bring the project into service by the fourth quarter of 2027. UBS estimates the project will be built at a multiple of 6-7 times and could contribute about $150 million in EBITDA for the company.
The Williams Companies, Inc. (NYSE:WMB) is also seeking a reissued Certificate of Public Convenience and Necessity for its Constitution pipeline project. Construction is planned to start in the fourth quarter of 2026 to bring the pipeline into service in April 2028. The project is estimated to cost around $1.2 billion and could add about $180 in additional EBITDA. This is based on UBS’s projected build multiple of 6-7 times.
Also on January 12, Goldman Sachs increased its price target on The Williams Companies, Inc. (NYSE:WMB) from $55 to $64 but kept its Neutral rating. The firm expects the company to achieve EBITDA of $8.23 billion in 2026, which is below both its previous estimate of $8.39 billion and the consensus forecast of $8.31 billion. Goldman Sachs pointed to the Haynesville E&P sale and the roll-off of Eagle Ford minimum volume commitments.
Goldman Sachs believes that The Williams Companies, Inc. (NYSE:WMB) could deliver a compound annual growth rate of about 8% from 2025 to 2030. The firm added that this growth rate could reach 13% if the company can execute an additional 1 gigawatt per year of BTM projects between 2027 and 2030.
The Williams Companies, Inc. (NYSE:WMB) is an American energy company focused on natural gas processing, transportation, and related services. The company moves about one-third of the natural gas in the US with its pipeline infrastructure.
5. Cheniere Energy, Inc. (NYSE:LNG)
Number of Hedge Fund Holders: 76
Cheniere Energy, Inc. (NYSE:LNG) is one of the best American energy stocks to buy now. On January 16, Scotiabank raised its price target on Cheniere Energy, Inc. (NYSE:LNG) from $257 to $266 and maintained its Outperform rating. This change comes as the firm updates its price targets for energy infrastructure companies. Scotiabank pointed to strong power demand and LNG exports as tailwinds that are supporting increased opportunities.
On January 14, Wolfe Research upgraded its rating on Cheniere Energy, Inc. (NYSE:LNG) from Peer Perform to Outperform with a price target of $220. The firm had previously downgraded the stock after Woodside’s final investment decision on its LNG project.
Wolfe Research pointed out that about 70 million tonnes per annum (mtpa), or about 10 billion cubic feet per day, of export projects saw final investment decisions being made in 2025. This is expected to lead to oversupply in the market later in the decade. Despite this, the firm noted that “the bad news seems to be out there at this point.” Wolfe Research noted that many major projects in the US have already advanced, global spreads have compressed, and Energy Transfer’s Lake Charles project has paused.
The research firm expects the negative news cycle to ease and believes that “elastic sources of global gas demand should rise with lower prices.” However, Wolfe Research noted that spreads could still go down more.
Cheniere Energy, Inc. (NYSE:LNG) is an American energy company. It is the leading producer and exporter of liquefied natural gas (LNG) in the United States.
4. Expand Energy Corporation (NASDAQ:EXE)
Number of Hedge Fund Holders: 77
Expand Energy Corporation (NASDAQ:EXE) is one of the best American energy stocks to buy now. On January 14, Benchmark reaffirmed its Buy rating on Expand Energy Corporation (NASDAQ:EXE) with a price target of $112. The firm identified Expand Energy Corporation (NASDAQ:EXE) as its top exploration and production pick for 2026.
Benchmark noted that the company is focused on respecting macro fundamentals, reducing breakeven prices, expanding its inventory in accretive ways, and maintaining a disciplined approach to its balance sheet. The research firm also pointed out that Expand Energy Corporation (NASDAQ:EXE) has indicated growth de-prioritization for 2026 due to weaker gas prices. The company already met its growth targets in the fourth quarter and now plans to maintain volumes through 2026.
Earlier, on January 8, Jefferies increased its price target on Expand Energy Corporation (NASDAQ:EXE) from $140 to $143 and kept its Buy rating on the stock. The firm expects the company to deliver strong Q4 2025 results, supported by improved pricing and production levels.
Jefferies expects production to come in at the high end of the company’s guidance. The firm also said that investors should focus on Expand Energy Corporation’s (NASDAQ:EXE) marketing strategy, management’s outlook on macroeconomic conditions, and the company’s plans to allocate its free cash flow in 2026.
Expand Energy Corporation (NASDAQ:EXE) is an American energy company and the largest natural gas producer in North America.
3. EQT Corporation (NYSE:EQT)
Number of Hedge Fund Holders: 82
EQT Corporation (NYSE:EQT) is one of the best American energy stocks to buy now. On January 16, Bank of America Securities reduced its price target on EQT Corporation (NYSE:EQT) from $84 to $74 but kept its Buy rating on the stock.
Bank of America Securities noted that positive sentiment around natural gas has persisted for 18 months. However, the research firm now sees a growing risk of oversupply in 2027. This concern is accompanied by worries of lower natural gas price forecasts. As a result, Bank of America Securities cut its average price targets for gas-levered exploration and production companies by around 12%.
However, earlier, on January 5, Bernstein slightly raised its price target on EQT Corporation (NYSE:EQT) from $72 to $73 and maintained its Outperform rating on the stock. The research firm has a balanced outlook for oil as 2026 starts.
Bernstein expects to see near-term price volatility but it also forecasts that the conditions will improve over the longer term.
EQT Corporation (NYSE:EQT) is an American vertically integrated natural gas company with production and midstream operations focused in the Appalachian Basin.
2. Chevron Corporation (NYSE:CVX)
Number of Hedge Fund Holders: 89
Chevron Corporation (NYSE:CVX) is one of the best American energy stocks to buy now. On January 14, Jefferies raised its price target on Chevron Corporation (NYSE:CVX) from $174 to $189 and maintained its Buy rating on the stock, ahead of the company’s fourth-quarter earnings report, which is expected on January 30.
The research firm forecasts that Chevron Corporation (NYSE:CVX) will report adjusted earnings per share of $1.45, or about 2% above Wall Street’s expectations. According to Jefferies, investors are expected to focus on topics like developments in Venezuela, production at TCO, an update on the El Segundo fire, and the company’s gas-to-AI outlook.
On January 7, BMO Capital reaffirmed its Outperform rating on Chevron Corporation (NYSE:CVX) with a price target of $170 on the stock. The research firm highlighted known challenges affecting the company, including problems at its TCO and El Segundo facilities and lower crude prices that may hurt the company’s quarterly results.
Despite these headwinds, BMO Capital is still confident about Chevron Corporation’s (NYSE:CVX) longer-term prospects. The firm also pointed to the company’s enhanced portfolio after it acquired Hess in 2025.
Chevron Corporation (NYSE:CVX) is a major American energy company that produces crude oil and natural gas. It also manufactures transportation fuels, lubricants, petrochemicals, and additives.
1. Exxon Mobil Corporation (NYSE:XOM)
Number of Hedge Fund Holders: 93
Exxon Mobil Corporation (NYSE:XOM) is one of the best American energy stocks to buy now. On January 16, Scotiabank reduced its price target on Exxon Mobil Corporation (NYSE:XOM) from $155 to $128 and maintained its Outperform rating on the stock.
The research firm is updating its price targets for US integrated oil companies, refining companies, and large-cap exploration and production stocks that it covers. Scotiabank expects quarterly earnings to be straightforward, as there were no major winter weather disruptions. Looking ahead, the firm also believes that investors will focus on whether recent market volatility will lead to changes in companies’ 2026 guidance and whether any exploration and production companies will introduce cost-cutting programs.
In other news, Wolfe Research also lowered its price target on Exxon Mobil Corporation (NYSE:XOM) from $141 to $140 and kept an Outperform rating on the stock. The firm sees Exxon Mobil Corporation (NYSE:XOM) as one of the top performers in the oil sector heading into 2026, citing solid execution and attractive valuation compared to peers.
Wolfe Research also noted that the company is showing strong momentum and the potential for faster free cash flow growth. The firm views Exxon Mobil Corporation (NYSE:XOM) as undervalued with best-in-class visibility and a good execution record that has consistently outperformed targets.
Exxon Mobil Corporation (NYSE:XOM) is an American energy and petrochemical company that manages an industry-leading portfolio of resources.
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