In this article, we are going to discuss the 12 best large cap energy stocks to buy now.
As of the writing of this article, the S&P Energy index has soared by more than 25% since the beginning of 2026. This compares to a decline of over 3% by the overall S&P 500 during the period.
The sharp surge comes on the back of global crude oil prices reaching multi-year highs, driven by the supply disruptions amid the US-Iran war. The WTI crude oil futures are currently trading at just below the $100 per barrel mark, hitting their highest level since Russia invaded Ukraine in 2022, as Iran continued its blockade of the Strait of Hormuz. The move has choked around a fifth of the global crude oil supply and forced major Gulf producers to cut output due to storage reaching critical capacity. That said, American oil majors are benefiting strongly from the crisis, as the surging crude prices have sent their stocks soaring to record highs.
The war has also led to a halt in liquified natural gas production in Qatar, blocking around a fifth of global LNG supply and jolting the global market. The move has prompted an uptick in gas prices in the key markets of Asia and Europe, creating a gap that American LNG exporters can exploit.
With that said, here are the Best Large-Cap Energy Stocks to Buy in 2026.
Our Methodology
To collect data for this article, we used our stock screeners to identify energy stocks with a market cap of over $10 billion. Then we ranked these stocks by the number of hedge funds invested in them at the end of Q4 2025, as per the Insider Monkey database. The following are the Best Large-Cap Energy Stocks to Invest in.
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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
12. Equinor ASA (NYSE:EQNR)
Number of Hedge Fund Holders: 20
Equinor ASA (NYSE:EQNR) is an international energy company headquartered in Norway, with over 25,000 employees in around 20 countries worldwide.
Equinor ASA revealed on March 10 that it had discovered oil in the Troll area and gas and condensate in the Sleipner area in the North Sea. The find at Troll’s Byrding C prospect contains between 4 million and 8 million barrels of oil equivalent (boe), while the discovery in the well northwest of the Sleipner Vest field is estimated to contain 5M-9M boe.
Moreover, both these discoveries are considered commercial and were made in areas with well-developed infrastructure for export to Europe. Equinor owns 75% of the permit in the Byrding C prospect and 58.3% in the Sleipner field, while also being the operator in both.
The discoveries come as Equinor ASA is targeting to grow its production by 3% in 2026, after already hitting a record high production level. Meanwhile, the company’s CapEx guidance stands at $13 billion for 2026 and $9 billion for 2027.
11. TotalEnergies SE (NYSE:TTE)
Number of Hedge Fund Holders: 26
TotalEnergies SE (NYSE:TTE) is a global integrated energy company that produces and markets energies.
TotalEnergies SE confirmed on March 13 that it had shut down approximately 15% of its output in the Middle East following the US-Iran war. The company has shut down or is in the process of shutting down in Qatar, Iraq, and the UAE offshore, while its UAE onshore production has not been impacted by the war at this stage. Total’s operations at its SATORP refinery in Saudi Arabia are continuing normally for now, while the impact of LNG production shutdowns in Qatar is limited to 2 million tonnes of LNG. This is because most Qatari LNG is marketed by QatarEnergy.
The closed output accounts for around 10% of TotalEnergies SE’s upstream cash flow, but the company clarified that the surge in global oil prices is more than enough to offset this loss, especially as it brings additional production online elsewhere this year.
10. Enterprise Products Partners L.P. (NYSE:EPD)
Number of Hedge Fund Holders: 27
Enterprise Products Partners L.P. (NYSE:EPD) is one of the largest publicly traded partnerships and a leading North American provider of midstream energy services to producers and consumers of natural gas, NGLs, crude oil, refined products, and petrochemicals.
Enterprise Products Partners L.P. received a lift on March 10 when JPMorgan analyst Jeremy Tonet upped the firm’s price target on the stock from $35 to $39, while maintaining a ‘Neutral’ rating on the shares. The revision comes as the analyst firm updated the company’s model following its Q4 report.
Enterprise Products Partners L.P. posted better-than-expected results for its Q4 2025 last month, beating expectations in both earnings and revenue. The firm is projecting its free cash flow to reach $1 billion in 2026, with 50% to 60% of it allocated to buybacks. Moreover, with more projects coming online, EPD expects a 10% area growth in adjusted EBITDA and cash flow in 2027 compared to 2026.
Enterprise Products Partners L.P. was recently included in our list of the Best Energy Stocks to Buy for a Retirement Portfolio.
9. Canadian Natural Resources Limited (NYSE:CNQ)
Number of Hedge Fund Holders: 34
Canadian Natural Resources Limited (NYSE:CNQ) is a senior crude oil and natural gas production company, with continuing operations in its core areas located in Western Canada, the UK portion of the North Sea, and offshore Africa.
Canadian Natural Resources Limited reported its Q4 2025 results on March 5. The company’s adjusted EPS of C$0.82 exceeded estimates by C$0.12, with executives pointing to its ability to weather dramatic swings in oil prices thanks to a low-cost structure and diversification strategy. CNQ’s output surged by 12.8% YoY to a record 1.66 million barrels of oil equivalent per day (boepd) in the fourth quarter, while its total annual production for FY 2025 also jumped by 15% YoY to hit a record 1.57 million boepd.
Moreover, Canadian Natural Resources Limited completed a strategic acquisition in the first quarter of 2026. As a result, the company increased its FY2026 production forecast to 1.62 million-1.67 million boepd, from 1.59 million-1.65 million boepd previously.
The strong performance enabled Canadian Natural Resources Limited to reduce its net debt by C$2.7 billion in 2025, with long-term debt totaling C$15.94 billion at the end of the year. As a result, the company has decided to increase its shareholder returns to 75% of its free cash flow. Moreover, the management clarified that when the firm’s net debt levels fall to C$13 billion, it will target to increase shareholder returns to 100% of FCF.
8. Shell plc (NYSE:SHEL)
Number of Hedge Fund Holders: 43
Shell plc (NYSE:SHEL) is an integrated energy company with operations spanning exploration, production, refining, marketing, and chemical manufacturing, alongside growing investments in biofuels and hydrogen.
Shell plc (NYSE:SHEL) announced on March 9 that it had agreed to sell Jiffy Lube International and its subsidiary Premium Velocity Auto (PVA) to an affiliate of Monomoy Capital Partners for $1.3 billion. The strategic move comes as the company continues to divest non-core assets while seeking to focus on higher-return businesses. The transaction is expected to close in the second half of 2026.
Jiffy Lube operates over 2,000 service centers across the US, as well as additional licensees in Canada, while PVA boasts over 360 locations across 20 states. Shell plc (NYSE:SHEL) will also enter into a long-term lubricants supply arrangement with Monomoy as part of the deal, ensuring that Jiffy Lube locations continue to use Shell products after the sale.
Machteld de Haan, President, Downstream, Renewables, and Energy Solutions at Shell plc (NYSE:SHEL), commented:
“By capitalizing on a strong market opportunity, this divestment allows us to monetize an asset that is not central to Shell’s lubricant’s portfolio in the US and reinvest in opportunities that generate higher returns.”
Shell plc (NYSE:SHEL) was recently included in our list of the 12 Best Undervalued Stocks to Invest in Right Now.
7. Suncor Energy Inc. (NYSE:SU)
Number of Hedge Fund Holders: 48
Suncor Energy Inc. (NYSE:SU) is a Canadian integrated energy company that extracts, produces, and provides energy from a mix of sources, ranging from oil sands to renewable fuels.
Suncor Energy Inc. received a boost on March 12 when Goldman Sachs raised its price target on the stock from $55 to $62, while keeping its ‘Buy’ rating on the shares. The revised target, which indicates an upside of almost 4% from the current levels, comes as the analyst firm updated its estimates across the US and Canadian oil majors to reflect the supply disruptions in the Middle East.
The situation comes as an opportunity for American and Canadian producers, especially with oil prices reaching multi-year highs. Brent crude futures continue to trade over the $100 per barrel mark as Iran continues to target vessels trying to cross the Strait of Hormuz. As a result, Goldman Sachs has upped its price targets for various operators, despite their strong YTD performance.
With an annual dividend yield of 2.93%, Suncor Energy Inc. was recently included in our list of the 14 Best Oil and Gas Dividend Stocks to Buy Right Now.
6. BP p.l.c. (NYSE:BP)
Number of Hedge Fund Holders: 51
BP p.l.c. (NYSE:BP) is a British multinational company recognized worldwide for quality gasoline, transport fuels, chemicals, and alternative sources of energy such as wind and biofuels.
It was reported on March 4 that the Newfoundland and Labrador provincial government in Canada has signed a critical framework agreement with BP p.l.c. (NYSE:BP) and Equinor to advance construction of the long-delayed Bay du Nord oil project. BP holds a 40% stake in the C$14 billion project, which involves building a floating platform to drill an estimated resource of 400 million barrels of light crude oil in the Atlantic Ocean.
The project was first approved in 2022 but has since faced delays due to rising costs and various political and environmental challenges. Following this framework agreement, a final investment decision (FID) on the project is scheduled for next year, with first oil planned for 2031. After completion of its first phase, the project will provide up to $6.4 billion in direct revenue to Newfoundland & Labrador.
BP p.l.c. (NYSE:BP) also boasts a strong position in the global liquefied natural gas industry and was recently included in our list of the 14 Best LNG Stocks to Buy Now.
5. EOG Resources, Inc. (NYSE:EOG)
Number of Hedge Fund Holders: 59
EOG Resources, Inc. is 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.
On March 12, Piper Sandler once again raised its price target on EOG Resources, Inc. from $127 to $144, but maintained its ‘Neutral’ rating on the shares. The updated target comes as the analyst firm increased its price deck.
With the ongoing supply disruption amid the Iran war, Piper Sander has raised its mid-cycle crude price forecast to $75 per barrel from $70 previously. The analyst firm sees lasting supply impacts from the situation in the Middle East and expects the soaring prices to incentivize increased investments in production.
EOG Resources, Inc. is targeting to generate approximately $4.5 billion in free cash flow in FY 2026. Meanwhile, its breakeven price to cover the year’s capital program and regular dividend is $50 WTI. So the Middle East crisis, which has pushed the WTI crude oil futures to just under $100 per barrel, provides a solid cushion for the company to grow its cash flow while also keeping its strong commitment to shareholders.
4. ConocoPhillips (NYSE:COP)
Number of Hedge Fund Holders: 65
ConocoPhillips (NYSE:COP) is one of the world’s largest independent E&P companies based on oil and natural gas production and proved reserves.
On March 12, Piper Sandler bumped its price target on ConocoPhillips from $111 to $154, while maintaining an ‘Overweight’ rating on the shares. The target adjustment, which indicates an upside potential of over 26% from the current share price, comes as the analyst firm revised its estimates following a $5 per barrel increase in its mid-cycle WTI price forecast amid the US/Iran war.
Piper Sandler sees the war having lasting supply impacts on the global energy market, with projections of 2026 crude balances to tighten by about 2 million barrels per day compared to prior expectations. The firm expects the tightening supply, paired with soaring prices, to incentivize increased investments in production.
ConocoPhillips is targeting an output of 2.23 million – 2.26 million barrels of oil equivalent per day in 2026, with first-quarter production expected between 2.3 – 2.34 million barrels per day.
3. Kinder Morgan, Inc. (NYSE:KMI)
Number of Hedge Fund Holders: 66
Kinder Morgan, Inc. (NYSE:KMI) is one of the largest energy infrastructure companies in North America. The company has an interest in or operates approximately 78,000 miles of pipelines and 139 terminals.
On March 5, Mizuho increased its price target on Kinder Morgan, Inc. from $31 to $37, while maintaining an ‘Outperform’ rating on the shares. The target bump, which indicates an upside of over 10% from the current levels, comes as the analyst firm increased its estimates after meeting with the company’s management.
Kinder Morgan, Inc. has benefited strongly from the record increase in energy demand, as its pipelines connect every major natural gas resource play to key demand centers. The company revealed in its Q4 2025 earnings call that it is working to potentially serve more than 10 Bcf a day of natural gas demand in the power generation sector. Moreover, the ballooning American LNG industry also provides a significant growth opportunity, and Kinder Morgan is projecting the LNG feed gas demand to average 19.8 Bcf per day in 2026, up 19% from last year.
2. Chevron Corporation (NYSE:CVX)
Number of Hedge Fund Holders: 86
Chevron Corporation (NYSE:CVX) manufactures and sells a range of high-quality refined products, including gasoline, diesel, marine and aviation fuels, premium base oil, finished lubricants, and fuel oil additives.
On March 12, Piper Sandler analyst Ryan Todd significantly increased the firm’s price target on Chevron Corporation from $179 to $242, while keeping an ‘Overweight’ rating on the shares. The bumped target, which indicates an upside of almost 23% from the current levels, comes as the analyst firm raised its mid-cycle crude price forecast to $75 per barrel from $70 previously.
The price deck increase comes amid the US-Iran war, which has threatened to block around a fifth of the global crude oil supply. While the duration of these supply disruptions remains uncertain for now, Piper Sandler expects them to leave a lasting impact. The analyst firm is projecting 2026 crude balances to tighten by about 2 Mb/d compared to prior forecasts. Moreover, Piper expects the tightening supply, paired with soaring prices, to further incentivize investment in increasing production.
As of the writing of this piece, the share price of Chevron Corporation has surged by over 26% since the beginning of 2026.
1. Exxon Mobil Corporation (NYSE:XOM)
Number of Hedge Fund Holders: 98
Topping our list of the Best Large-Cap Energy Stocks is Exxon Mobil Corporation (NYSE:XOM). It is one of the largest integrated fuels, lubricants, and chemical companies in the world.
Exxon Mobil Corporation received a lift on March 12 when Piper Sandler raised its price target on the stock from $145 to $186, while keeping an ‘Overweight’ rating on the shares. The revised target indicates an upside potential of around 19% from the current share price.
Piper Sandler upped its estimates due to a $5 per barrel increase in its mid-cycle WTI price forecast, driven by the supply disruptions due to the US-Iran war. The war has led to Tehran effectively closing down the Strait of Hormuz, which handles around 20% of the global crude oil and LNG supply. The outages have sent crude oil prices soaring to multi-year highs, with WTI crude oil futures trading at just below the $100 per barrel mark as of the writing of this piece.
While the duration of these disruptions remains uncertain, Piper expects them to leave a lasting impact. As a result, the firm’s commodity macro team is forecasting that the 2026 crude balances will tighten by about 2 Mb/d compared to prior expectations. The analyst firm expects the tight supply, paired with the high prices, to drive an uptick in future investments to increase production.
