On February 6, Reuters reported that oil prices ended higher on Friday, recovering from earlier losses. This update comes as investors grow concerned that recent talks between the United States and Iran have not lowered the risk of a military conflict between the two nations.
According to the report by Reuters, Brent crude futures rose 50 cents, or 0.74%, to settle at $68.05 a barrel. US West Texas Intermediate crude gained 26 cents, or 0.41%, to close at $63.55 a barrel.
The US and Iran held discussions through Omani mediation in an effort to overcome major differences over Iran’s nuclear program. However, the talks failed to reassure markets. John Kilduff, partner at Again Capital, noted that the situation keeps shifting, improving at times and then worsening again, which creates ongoing uncertainty over Iran.
Market concerns are focused on the risk that any escalation of tension between the US and Iran could disrupt oil flows. Around one-fifth of global oil consumption passes through the Strait of Hormuz between Oman and Iran. The Strait is used by Saudi Arabia, the United Arab Emirates, Kuwait, and Iraq to export most of their crude oil. It is also used by fellow OPEC member Iran. If tensions in the region were to ease and the risk of conflict decline, oil prices could fall.
With this background in mind, let’s take a look at the 12 best oil and gas stocks to buy right now.
Our Methodology
To compile our list of the 12 best oil and gas stocks to buy right now, we used stock screeners from Finviz and Yahoo Finance to find the largest oil and gas companies. We sorted our results based on market capitalization and picked the 40 largest stocks. Next, we focused on the top 12 stocks that are 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 oil and gas stocks 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 Oil and Gas Stocks to Buy Right Now
12. Duke Energy Corporation (NYSE:DUK)
Number of Hedge Fund Holders: 62
Duke Energy Corporation (NYSE:DUK) is one of the best oil and gas stocks to buy right now. On January 30, BTIG reduced its price target on Duke Energy Corporation (NYSE:DUK) from $150 to $141 and kept its Buy rating on the stock.
This update comes as part of a broader research note where BTIG previewed 2025 results for utility companies. The research firm noted that upcoming earnings calls could be more positive, even when investor sentiment has remained cautious.
Earlier, on January 23, RBC Capital cut its price target on Duke Energy Corporation (NYSE:DUK) from $143 to $140 and maintained a Sector Perform rating. The research firm noted that many utility companies have provided early or off-cycle updates to capital plans, which has been the trend over the past 18 months. This led RBC Capital to revise its sector models.
On January 20, Wells Fargo also reduced its price target on Duke Energy Corporation (NYSE:DUK) from $126 to $115 and kept its Equal Weight rating. Wells Fargo updated its valuation approach and rolled forward its outlook by one year to 2028. The research firm believes that Duke Energy Corporation (NYSE:DUK) is currently trading at a premium compared with its previous discounted valuation.
Duke Energy Corporation (NYSE:DUK) is an American electric power and natural gas holding company. It serves millions of customers in the US with its electric utilities and natural gas utilities.
11. Occidental Petroleum Corporation (NYSE:OXY)
Number of Hedge Fund Holders: 62
Occidental Petroleum Corporation (NYSE:OXY) is one of the best oil and gas stocks to buy right now. On January 28, Piper Sandler slightly increased its price target on Occidental Petroleum Corporation (NYSE:OXY) from $46 to $47 and kept its Neutral rating on the stock.
The research firm pointed out that it expects strong Q4 results from gas companies. However, Piper Sandler noted that weaker oil and natural gas liquids prices, along with WAHA pricing, were a challenge for oil stocks. Looking ahead to fiscal 2026, the firm expects oil companies to focus on maintenance programs, while a number of gas-producing companies are focusing on growth to meet rising LNG demand.
Earlier, on January 27, BofA also raised its price target on Occidental Petroleum Corporation (NYSE:OXY) from $44 to $45 while maintaining a Neutral rating on the stock. This increase in price target comes as the firm updates its price targets across integrated, refining, and midstream stocks under its coverage.
BofA pointed out that the removal of Maduro in Venezuela and the unrest in Iran have helped push front-month crude prices higher. The firm added that both geopolitical developments and company-specific factors could act as catalysts going forward.
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 oil and gas stocks to buy right now. On January 28, Freedom Capital Markets upgraded its rating from Sell to Hold on Kinder Morgan, Inc. (NYSE:KMI) with a price target of $32.
This update comes after the company reported solid Q4 results, which beat market expectations for adjusted EPS estimates by 8.3%, as noted by Freedom Capital Markets analyst Sergey Pigarev. The research firm pointed out that Kinder Morgan, Inc. (NYSE:KMI) reduced its net debt to improve its debt profile and received upgrades to its credit ratings. Freedom Capital Markets expects the company to have a solid Q1, but it believes the stock is now trading close to its fair value, which leaves limited room for further upside.
Earlier, on January 23, Scotiabank increased its price target on Kinder Morgan, Inc. (NYSE:KMI) from $29 to $30 and kept its Sector Perform rating.
Scotiabank highlighted that Kinder Morgan, Inc.’s (NYSE:KMI) sanctioned project backlog has now grown to about $10 billion, with the company pursuing another $10 billion in potential opportunities. The company saw another quarter of sequential growth in its net backlog.
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 oil and gas stocks to buy right now. On February 3, Antero Resources Corporation (NYSE:AR) reported that it has completed the acquisition of HG Energy II Production Holdings, LLC from HG Energy II LLC in a transaction valued at about $2.8 billion in cash.
For the purposes of partially funding the acquisition, Antero Resources Corporation (NYSE:AR) entered into a new unsecured credit agreement with Royal Bank of Canada and other lenders. Under this agreement, the company borrowed $1.5 billion through a Term Loan A facility that will mature on February 3, 2029. The facility is not backed by guarantees from any of Antero Resources Corporation’s (NYSE:AR) subsidiaries.
Previously, on January 23, Morgan Stanley reduced its price target on Antero Resources Corporation (NYSE:AR) from $48 to $46 and maintained its Overweight rating on the stock.
Morgan Stanley updated its oil price forecasts for 2026 and 2027 based on market pricing as of January 7, as part of its fourth-quarter preview covering exploration and production companies, oil majors, and Canadian producers. The research firm expects fourth-quarter operational updates to be “fairly clean,” but expects weaker cash flow due to price realizations.
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 oil and gas stocks to buy right now. On February 5, Reuters reported that SLB N.V. (NYSE:SLB) has won a $1.5 billion contract from Kuwait Oil Company to develop the Mutriba field for five years. Under the contract, SLB N.V. (NYSE:SLB) will be responsible for the design, development, and production management of the Mutriba field.
Oil producers across Africa, Asia, and the Middle East are looking to increase inventories, which has led to higher exploration and drilling activity. This trend is boosting demand for oilfield services in the region. Previously, in December, SLB N.V. (NYSE:SLB) secured a five-year contract to provide services to Saudi Arabian Oil Company (TADAWUL:2222) for its unconventional gas fields.
On February 1, Jefferies increased its price target on SLB N.V. (NYSE:SLB) from $51 to $58 and maintained a Buy rating. Jefferies believes that the company offers a valuation that is “not challenging.”
Earlier, on January 27, UBS also raised its price target on SLB N.V. (NYSE:SLB) from $50 to $61 and maintained a Buy rating on the stock.
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 oil and gas stocks to buy right now. On February 5, Roth Capital increased its price target on ConocoPhillips (NYSE:COP) from $105 to $112 and maintained a Buy rating following the company’s Q4 results.
ConocoPhillips (NYSE:COP) issued unchanged 2026 capex guidance and stated that it continues to make progress on its $1 billion cost-cutting program. The company’s guidance for 2026 includes capital expenditures of around $12 billion and adjusted operating costs of $10.2 billion.
Also on February 5, Reuters reported that ConocoPhillips (NYSE:COP) missed Wall Street estimates for Q4 profit because of weaker crude prices. However, the company is aiming to cut capital and operating costs by $1 billion in 2026.
The company’s CEO, Ryan Lance, pointed out that the cost-reduction efforts build on more than $1 billion in run-rate synergies captured in 2025 after ConocoPhillips (NYSE:COP) acquired Marathon Oil for $22.5 billion. Lance highlighted that the company is “focused on driving a $1 billion reduction in our capital and costs in 2026” and plans to return 45% of its cash from operations to shareholders.
According to the report by Reuters, ConocoPhillips (NYSE:COP) announced in 2025 its plans to lower its workforce by 20% to 25% as part of a broader restructuring. RBC Capital Markets analyst Scott Hanold pointed out that investor concerns “still largely focus on timing of the significant free-cash-flow inflection and usage of the cash balance for shareholder returns.”
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 oil and gas stocks to buy right now. On February 2, Jefferies increased its price target on The Williams Companies, Inc. (NYSE:WMB) from $71 to $76 and kept its Buy rating.
Jefferies expects the company to announce medium-term adjusted EBITDA growth guidance of 8% to 10% through fiscal 2030 compared with 2025, beating current market expectations. According to the research firm, investors are underestimating the scale of The Williams Companies, Inc.’s (NYSE:WMB) power innovation opportunity.
Also on February 2, Mizuho increased its price target on The Williams Companies, Inc. (NYSE:WMB) from $72 to $73 and kept its Outperform rating. The research firm expects Q4 earnings to be “largely a non-event,” with investor focus expected to shift to updated growth trends that now include contributions from over $5 billion in announced Power Innovation projects.
Mizuho increased its fiscal year 2026 estimates above consensus, highlighting that The Williams Companies, Inc.’s (NYSE:WMB) marketing segment, Sequent, stands to benefit from energy market volatility linked to Winter Storm Fern. The research firm also noted that the company continues to move forward with its “strategy of leveraging natural gas infrastructure to capture core gas transmission projects.” At the same time, The Williams Companies, Inc. (NYSE:WMB) is pursuing behind-the-meter power generation initiatives, which Mizuho believes could “turbocharge growth.”
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 oil and gas stocks to buy right now. On January 28, RBC Capital reduced its price target on Cheniere Energy, Inc. (NYSE:LNG) from $282 to $271 and maintained an Outperform rating on the stock. This update comes as the firm previews Q4 for US midstream companies.
RBC Capital noted that its estimate changes are being driven mainly by commodity price movements and production curtailments. The research firm added that natural gas-focused stocks underperformed the broader sector in the fourth quarter due to concerns around an AI bubble. However, RBC Capital continues to see the natural gas growth story positively and expects it to remain an important theme during earnings season.
Earlier, on January 25, Jefferies also reduced its price target on Cheniere Energy, Inc. (NYSE:LNG) from $290 to $251 and kept its Buy rating on the stock ahead of the company’s fourth-quarter earnings report.
Jefferies pointed out that investors are “universally bearish” on Cheniere Energy, Inc.’s (NYSE:LNG) outlook, but the firm is still “constructive” on the stock despite the possibility of volatility. The reduced price target reflects expectations for lower long-term capacity and weaker marketing margins. However, Jefferies believes that the company remains well-positioned due to its low leverage and solid level of contracted business.
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 oil and gas stocks to buy right now. On January 28, Piper Sandler reduced its price target on Expand Energy Corporation (NASDAQ:EXE) from $138 to $137 and maintained an Overweight rating.
Piper Sandler said it expects strong Q4 results from gas companies. However, the firm noted that weaker WAHA pricing and soft oil and NGL prices are creating challenges for oil companies. Looking at fiscal year 2926, Piper Sandler expects most oil companies in its coverage to focus on maintenance programs, while a number of gas-producing companies are looking to focus on growth to meet rising LNG demand.
Earlier, on January 20, Barclays also reduced its price target on Expand Energy Corporation (NASDAQ:EXE) from $136 to $126 and kept its Overweight rating. This update comes as the firm adjusted ratings and price targets for the exploration and production sector as part of a Q4 preview. Barclays noted that the upstream sector’s cash return model remains strong despite ongoing macroeconomic uncertainty.
Also on January 20, Stephens cut its price target on Expand Energy Corporation (NASDAQ:EXE) from $143 to $140 and kept an Overweight rating. Stephens noted that the company’s Haynesville assets are well-positioned to benefit from growing LNG export demand and power generation needs over the next four years, which will need extra natural gas supply from regions outside of Appalachia and the Permian.
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 oil and gas stocks to buy right now. On January 22, Stephens slightly reduced its price target on EQT Corporation (NYSE:EQT) from $69 to $68 and kept its Overweight rating.
The research firm noted that reducing debt remains EQT Corporation’s (NYSE:EQT) top free cash flow priority and expects the company to reach its $7.5 billion net debt goal in early first-quarter 2026. Stephens also anticipates a positive update on the company’s Deep Utica wells, highlighting that the company has cut drilling costs by $2 million per well compared with the previous quarter.
On January 21, Scotiabank analyst Cameron Bean also cut the price target on EQT Corporation (NYSE:EQT) from $67 to $63 and maintained a Sector Perform rating on the stock.
This update comes as Scotiabank updates its price targets for North American natural gas stocks. The firm’s forecasts continue to show supply deficits in the United States and Western Canada, which supports its outlook that natural gas prices and related stocks could rise over the next year.
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 oil and gas stocks to buy right now. On February 2, HSBC raised its price target on Chevron Corporation (NYSE:CVX) from $169 to $180 but downgraded its rating from Buy to Hold. According to the research note, this update comes despite the research firm’s continued positive view of the company’s mix of cash flow growth and financial discipline.
HSBC analyst Kim Fustier pointed to Chevron Corporation’s (NYSE:CVX) year-to-date gains in share price as the main reason for the downgrade. The analyst noted that the stock’s valuation is stretched thanks to the rally, which has been supported by hopes around Venezuela and higher oil prices. HSBC also noted that Chevron Corporation’s (NYSE:CVX) projected 2026 distribution yield of 7.2% is now lower than that of European competitors.
Also on February 2, JPMorgan raised its price target on Chevron Corporation (NYSE:CVX) from $176 to $181 and kept its Overweight rating. JPMorgan highlighted the company’s attractive investment cycle phase after it concluded the HES merger. The firm also noted that the company’s structural cost reduction efforts are expected to deliver $3 billion to $4 billion in annual run-rate savings by 2026.
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 oil and gas stocks to buy right now. On February 4, BMO Capital increased its price target on Exxon Mobil Corporation (NYSE:XOM) from $125 to $155 and maintained a Market Perform rating after the company’s recent quarterly earnings report and after BMO analysts met with the company’s incoming Chief Financial Officer, Neil Hansen.
BMO Capital analyst Phillip Jungwirth said that the company’s Q4 2025 results were “neutral from an expectations perspective,” but noted that Exxon Mobil Corporation (NYSE:XOM) “once again delivered strong results, led by Energy Products.” The research firm also pointed to the company’s “differentiated portfolio and leading execution capabilities” as key strengths supporting the company’s outlook.
On February 3, UBS also raised its price target on Exxon Mobil Corporation (NYSE:XOM) from $145 to $171 and kept its Buy rating. This update comes after the company’s Q4 2025 earnings report, which beat market expectations, as noted by UBS analysts.
Despite this, UBS pointed out that the company is facing some operational challenges. The firm noted that five of Exxon Mobil Corporation’s (NYSE:XOM) eight underlying segments missed expectations and international chemicals posted negative earnings. US chemicals earnings also declined by 56% compared to the previous quarter.
Exxon Mobil Corporation (NYSE:XOM) is an American energy and petrochemical company that manages an industry-leading portfolio of resources.
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