In this article, we will discuss the 13 Most Promising Energy Stocks According to Wall Street Analysts.
As per BloombergNEF, the renewable energy investments witnessed another record in H1 2025, increasing 10% from the same period of last year to touch $386 billion. That being said, asset finance for utility-scale solar and onshore wind fell by 13%, demonstrating an adverse policy environment in some critical markets. Meredith Annex, BloombergNEF’s head of clean power, believes that the investors have been rethinking capital allocation and are putting money where the project returns are robust.
Current Trends in the Energy Market
BloombergNEF also highlighted that US investment in renewables fell by 36% in H1 of the year versus H2 of last year, while the EU-27 investment rose 63%. Notably, the global solar investment in H1 of the year touched $252 billion, while wind was at $126 billion. The offshore wind made up for most of the rise over the last year.
The US Energy Information Administration, in its Short-Term Energy Outlook dated September 9, stated that the declining oil prices resulted in a drop in gasoline prices. It anticipates that the US average retail price for regular-grade gasoline will average ~$3.10 per gallon (gal) this year, reflecting a fall of 20 cents/gal from the previous year.
Amidst such trends, we will now have a look at the 13 Most Promising Energy Stocks According to Wall Street Analysts
Our Methodology
To list the 13 Most Promising Energy Stocks According to Wall Street Analysts, we used a screener to shortlist stocks that cater to the broader energy sector. Next, we narrowed our list to the ones in which analysts see significant upside to. Finally, we selected the ones popular among hedge funds, as of Q2 2025. The stocks are arranged in ascending order of their hedge fund sentiments.
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).
13 Most Promising Energy Stocks According to Wall Street Analysts
13. EOG Resources, Inc. (NYSE:EOG)
Number of Hedge Fund Holders: 53
Average Upside Potential: ~21.1%
EOG Resources, Inc. (NYSE:EOG) is one of the Most Promising Energy Stocks According to Wall Street Analysts. On September 15, Mizuho analyst Nitin Kumar reduced the price target on the company’s stock to $133 from $140, while keeping a “Neutral” rating. Notably, the firm expects a positive skew in gas prices over the upcoming 12 months. As per the analyst, while oil stocks continue to price in the current strip, the gas stocks provide a 10%-15% discount on the basis of implied commodity prices. Notably, EOG Resources, Inc. (NYSE:EOG) delivered healthy Q2 2025 results, with oil, gas, and NGL volumes surpassing the midpoints of its guidance.
EOG Resources, Inc. (NYSE:EOG) highlighted that expansion of its portfolio via the Encino acquisition, an entry into Bahrain and the UAE, and robust exploration progress throughout its domestic portfolio and in Trinidad, significantly enhanced its industry-leading asset base. EOG Resources, Inc. (NYSE:EOG) continues to improve its resource base. With the closing of its Encino acquisition, the Utica is well-positioned as a foundational asset for EOG Resources, Inc. (NYSE:EOG).
12. Plains All American Pipeline, L.P. (NASDAQ:PAA)
Number of Hedge Fund Holders: 8
Average Upside Potential: ~23%
Plains All American Pipeline, L.P. (NASDAQ:PAA) is one of the Most Promising Energy Stocks According to Wall Street Analysts. On September 8, Scotiabank lifted the price target on the company’s stock to $20 from $18, while keeping an “Outperform” rating, as reported by The Fly. The company’s deal to acquire ownership stakes in EPIC Crude is expected to be generally positive for Kinetik and Plains All American Pipeline, L.P. (NASDAQ:PAA), opines the firm’s analyst.
Plains All American Pipeline, L.P. (NASDAQ:PAA) and Plains GP Holdings reported strong Q2 2025 results, with adjusted EBITDA attributable to the former of $672 million. Notably, Plains GP Holdings owns an indirect non-economic controlling interest in Plains All American Pipeline, L.P. (NASDAQ:PAA)’s general partner and an indirect limited partner interest in PAA. The NGL divestiture is projected to close in Q1 2026 and will improve its free cash durability. Furthermore, it will also offer significant financial flexibility and fuel opportunities to streamline the business.
11. Targa Resources Corp. (NYSE:TRGP)
Number of Hedge Fund Holders: 48
Average Upside Potential: ~24%
Targa Resources Corp. (NYSE:TRGP) is one of the Most Promising Energy Stocks According to Wall Street Analysts. On September 18, Ameet Thakkar, an analyst from BMO Capital, initiated a “Buy” rating on the company’s stock with a price target of $185. The analyst’s rating is backed by a combination of factors demonstrating Targa Resources Corp. (NYSE:TRGP)’s growth potential and value. As per the analyst, the company remains well-placed to thrive even in the challenging Permian rig environment, with expectations for its volumes to exceed the basin average.
Furthermore, this growth potential is helped by Targa Resources Corp. (NYSE:TRGP)’s current trading valuation, which offers a significant discount versus the S&P 500 and its C-Corp peers, making the company an attractive investment opportunity, opines the firm’s analyst. Additionally, Targa Resources Corp. (NYSE:TRGP)’s strong asset portfolio, mainly its extensive midstream infrastructure in the Delaware and Midland basins, offers a competitive edge, added Thakkar.
Oakmark Funds, advised by Harris Associates, released its Q2 2025 investor letter. Here is what the fund said:
“Targa Resources Corp. (NYSE:TRGP) is a leading midstream natural gas and natural gas liquids (NGL) company. Targa is a part of a group that controls 90% of the fractionation capacity in the largest hub for NGLs in the world, known as Mont Belvieu. Thanks to the region’s unique topography and proximity to the Gulf Coast, Targa benefits from meaningful cost advantages and significant barriers to entry. We like that Targa generates ~90% of its earnings through multi-year fee-based arrangements with its customer base, which provides protection against oversupply or re contracting. Uncertainty around Permian oil pro duction growth has recently weighed on share price. However, in our view, Targa remains well-po sitioned to grow, even if the Permian slows dramatically. We were happy to purchase shares at a discount to peers based on normalized earnings power and our estimate of intrinsic value.”
10. Range Resources Corporation (NYSE:RRC)
Number of Hedge Fund Holders: 55
Average Upside Potential: ~25%
Range Resources Corporation (NYSE:RRC) is one of the Most Promising Energy Stocks According to Wall Street Analysts. On September 19, Raymond James reduced the price target on the company’s stock to $41 from $45, while keeping an “Outperform” rating, as reported by The Fly. Notably, the firm expects greater upside potential if the robust gas outlook materializes over the upcoming few years, highlighted the analyst.
Range Resources Corporation (NYSE:RRC) remains well-positioned to benefit as in-basin demand opportunities tend to materialize along with a global call on natural gas. Notably, the company is one of the few producers in Appalachia having enough high-quality inventory to support the needed growth in baseload supply. Also, Range Resources Corporation (NYSE:RRC)’s continued efficiencies are being supported by its countercyclical investments in drilled inventory and consistent well results.
Range Resources Corporation (NYSE:RRC)’s 2025 all-in capital budget is $650 million – $680 million, an improvement from the prior guidance of $650 million – $690 million. Furthermore, its annual production is now anticipated to be ~2.225 Bcfe per day in 2025, updated from the previous guidance of ~2.2 Bcfe per day.
9. ConocoPhillips (NYSE:COP)
Number of Hedge Fund Holders: 72
Average Upside Potential: ~25.1%
ConocoPhillips (NYSE:COP) is one of the Most Promising Energy Stocks According to Wall Street Analysts. On September 15, Mizuho reduced the price target on the company’s stock to $120 from $125, while keeping an “Outperform” rating, as reported by The Fly. The firm adjusted ratings in the broader integrated oil space post updating the commodity price outlook and valuations. It expects a positive skew in gas prices over the upcoming 12 months. Notably, the firm has a relative preference for the large-cap, gas exploration and production companies, having selective exposure to the core oil names.
In Q2 2025, ConocoPhillips (NYSE:COP) delivered robust results financially, operationally, and strategically. It completed the integration of Marathon Oil and remains on track to deliver over $1 billion in synergies and over $1 billion of one-time benefits. Furthermore, ConocoPhillips (NYSE:COP) has been leveraging its scale and technologies to drive further $1 billion-plus in company-wide cost reductions and margin enhancements by 2026 end.
Cullen Capital Management, LLC, operating under the name Schafer Cullen Capital Management, Inc. (SCCM), released its SCCM Enhanced Equity Income Fund Q2 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.
8. Hess Midstream LP (NYSE:HESM)
Number of Hedge Fund Holders: 25
Average Upside Potential: ~26%
Hess Midstream LP (NYSE:HESM) is one of the Most Promising Energy Stocks According to Wall Street Analysts. On September 18, the company gave updated financial and operational guidance. Hess Midstream LP (NYSE:HESM) expects long-term growth in gas throughput volumes through at least 2027 in the Bakken, while oil throughput volumes are projected to plateau in 2026 due to the lower planned rig activity. Also, it anticipates relatively flat adjusted EBITDA in 2026 versus 2025, with growth in 2027 due to the continued improvement in gas throughput volumes as well as the inflation escalation provisions under Hess Midstream’s existing commercial agreements.
Hess Midstream LP (NYSE:HESM) anticipates significantly lower capital spending in 2026 and 2027 on the basis of suspension of early engineering activities on the Capa gas plant and removal of the project from the forward plan. In 2025, Hess Midstream LP (NYSE:HESM) expects full-year gas gathering volumes to average in the range of 455 to 465 million cubic feet of natural gas per day and gas processing volumes to average between 440 to 450 MMcf of natural gas per day.
7. Diamondback Energy, Inc. (NASDAQ:FANG)
Number of Hedge Fund Holders: 46
Average Upside Potential: ~28.8%
Diamondback Energy, Inc. (NASDAQ:FANG) is one of the Most Promising Energy Stocks According to Wall Street Analysts. On September 15, Mizuho reduced the price target on the company’s stock to $176 from $183, while keeping an “Outperform” rating, as reported by The Fly. Notably, the firm adjusted ratings in the integrated oil space after updating the commodity price outlook as well as valuations. Furthermore, it still expects a positive skew in gas prices over the next 12 months.
Elsewhere, Deep Blue Midland Basin LLC, Diamondback Energy, Inc. (NASDAQ:FANG), and Five Point Infrastructure LLC announced an agreement in which Deep Blue will acquire Environmental Disposal Systems, LLC from Diamondback Energy, Inc. (NASDAQ:FANG). This will help approximately double Deep Blue’s scale and advance its leadership in sustainable produced water management. Diamondback Energy, Inc. (NASDAQ:FANG) is expected to maintain a 30% equity interest in Deep Blue and would be receiving ~$675 million in upfront cash proceeds. It will also have the potential to receive up to $200 million of additional cash proceeds via performance-based earnouts until 2028 end.
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.”
6. Gulfport Energy Corporation (NYSE:GPOR)
Number of Hedge Fund Holders: 38
Average Upside Potential: ~29.7%
Gulfport Energy Corporation (NYSE:GPOR) is one of the Most Promising Energy Stocks According to Wall Street Analysts. On September 3, KeyBanc reduced the price target on the company’s stock to $205 from $215 while keeping an “Overweight” rating, as reported by The Fly. The firm stated that its estimates demonstrate the revised natural gas price forecast. Elsewhere, Gulfport Energy Corporation (NYSE:GPOR) announced its plans to allocate $75 million – $100 million towards targeted discretionary acreage acquisition opportunities and expects that this investment will help expand its high-quality, low-breakeven inventory by over 2 years.
This reflects the highest level of leasehold investment at Gulfport Energy Corporation (NYSE:GPOR) in more than 6 years, cementing its commitment to organically grow the inventory runway and increase development optionality. In Q2 2025, Gulfport Energy Corporation (NYSE:GPOR)’s production volumes rose by ~8% over the first quarter, demonstrating healthy well results despite ~40 MMcfe per day of unplanned midstream outages and constraints.
Gulfport Energy Corporation (NYSE:GPOR) is an independent natural gas-weighted exploration and production company, which is focused on exploration, acquisition, and production of natural gas, crude oil, and NGL.
5. ONEOK, Inc. (NYSE:OKE)
Number of Hedge Fund Holders: 44
Average Upside Potential: ~30%
ONEOK, Inc. (NYSE:OKE) is one of the Most Promising Energy Stocks According to Wall Street Analysts. On September 18, BofA reduced the price target on the company’s stock to $100 from $109, while keeping a “Buy” rating, as reported by The Fly. As per the analyst, the firm has been updating its price targets for Integrated, Refining, and Midstream stocks under its coverage. Elsewhere, ONEOK, Inc. (NYSE:OKE), WhiteWater, MPLX LP, and Enbridge Inc., via the existing Matterhorn JV, announced a new natural gas pipeline to transport growing natural gas production from the Permian Basin to the Gulf Coast region.
Notably, the pipeline’s strategic location provides connectivity to growing natural gas demand markets, supporting to meet the need for higher electricity generation and international demand for LNG exports. ONEOK, Inc. (NYSE:OKE) highlighted that strategic acquisitions continue to deliver tangible benefits as it is making meaningful progress on the acquisition-related synergies and organic growth. In May 2025, ONEOK, Inc. (NYSE:OKE) acquired the remaining 49.9% interest in Delaware G&P LLC., and, in July 2025, it acquired an additional 30% interest in BridgeTex Pipeline Company, LLC, leading to a 60% ownership interest.
4. Devon Energy Corporation (NYSE:DVN)
Number of Hedge Fund Holders: 58
Average Upside Potential: ~30%
Devon Energy Corporation (NYSE:DVN) is one of the Most Promising Energy Stocks According to Wall Street Analysts. On September 15, Mizuho lowered price target on the company’s stock to $40 from $43, while maintaining an “Outperform” rating, as reported by The Fly. The firm decided to adjust ratings in the broader integrated oil space after updating the commodity price outlook and valuations. Notably, the firm maintains a relative preference for the large-cap, gas exploration and production companies, having selective exposure to the core oil names.
Amidst the market fluctuations, Devon Energy Corporation (NYSE:DVN) was focused on operational excellence, leveraging its premier resource base and strong financial position to provide healthy Q2 2025 results. Devon Energy Corporation (NYSE:DVN)’s business optimization plan continues to progress rapidly, positioning it to achieve $1 billion in annual pre-tax FCF by 2026 end. For the 2nd consecutive quarter, the company reduced its 2025 capital by $100 million while increasing the production forecasts, further cementing its FCF trajectory.
3. Energy Transfer LP (NYSE:ET)
Number of Hedge Fund Holders: 36
Average Upside Potential: ~32.9%
Energy Transfer LP (NYSE:ET) is one of the Most Promising Energy Stocks According to Wall Street Analysts. On September 18, BofA reduced the price target on the company’s stock to $22 from $23, while keeping a “Buy” rating, as reported by The Fly. The firm is updating price targets for Integrated, Refining, and Midstream stocks, which are under its coverage. After the 2-year stint, in which midstream companies were incentivized to grow, the firm opines that the investors will return to looking for return of cash as the primary metric, with the capability to reduce growth in capex and offer buybacks or higher dividends being prized.
Energy Transfer LP (NYSE:ET) stated that it reached FID on Phase II of its Hugh Brinson Pipeline, which is expected to include the addition of compression. Upon completion, the bi-directional pipeline would be having the ability to transport ~2.2 Bcf/d from west to east and also transport ~1 Bcf/d from east to west. Energy Transfer LP (NYSE:ET) placed its Nederland Flexport NGL Export Expansion Project into ethane and propane service and anticipates starting ethylene service in Q4 2025. The project is anticipated to add up to 250,000 Bbls/d of total NGL export capacity at Partnership’s Nederland terminal.
2. Chord Energy Corporation (NASDAQ:CHRD)
Number of Hedge Fund Holders: 52
Average Upside Potential: ~35%
Chord Energy Corporation (NASDAQ:CHRD) is one of the Most Promising Energy Stocks According to Wall Street Analysts. On September 18, Scotiabank initiated coverage of the company’s stock with a “Sector Perform” rating and a price objective of $120. As per the analyst, Chord Energy Corporation (NASDAQ:CHRD) possesses a strong balance sheet with healthy cash flow generation and returns to shareholders. That being said, its inventory length might be a concern. Also, the firm sees limited visibility into Chord Energy Corporation (NASDAQ:CHRD)’s longer-term growth.
Chord Energy Corporation (NASDAQ:CHRD)’s premier Williston Basin position, built with an emphasis on disciplined capital allocation, early adoption of new technologies, and strategic M&A, positions the company in a strong position to fuel continuous improvement amid persistent commodity volatility. Also, the company remains focused on optimizing capital allocation while operating safely and sustainably. Chord Energy Corporation (NASDAQ:CHRD) delivered production volumes and capital better than the anticipations in H1 of the year, thanks to the robust execution, operational efficiencies, lower downtime, and healthy asset performance.
Palm Valley Capital Management, an investment management firm, released its Q2 2025 investor letter. Here is what the fund said:
“The Fund acquired four new names during the second quarter: Healthcare Services Group (ticker: HCSG), Chord Energy Corporation (NASDAQ:CHRD), RPC (ticker: RES), and Papa John’s International (ticker: PZZA).
Chord Energy is an exploration and production (E&P) company in the Williston Basin. As oil prices fell sharply in April, Chord’s stock fell below our valuation of the firm’s proven reserves. We’re fond of Chord’s strong balance sheet, free cash flow, and low-cost oil reserves. In 2024, the company generated $2.35 billion of EBITDA and $1 billion of free cash flow. Since the majority of Chord’s $800 million in debt doesn’t mature until 2033, we believe free cash flow will continue to be used to pay dividends and repurchase stock. Since 2021, Chord has paid $56 per share in dividends (over half the current share price!). With a market cap near $5 billion, we believe Chord is attractively priced relative to cash flow and our net asset valuation.”
1. Expand Energy Corporation (NASDAQ:EXE)
Number of Hedge Fund Holders: 93
Average Upside Potential: ~37%
Expand Energy Corporation (NASDAQ:EXE) is one of the Most Promising Energy Stocks According to Wall Street Analysts. On September 15, Mizuho analyst Nitin Kumar lowered the price target on Expand Energy Corporation (NASDAQ:EXE)’s stock to $136 from $154, while keeping a “Neutral” rating, as reported by The Fly. As per the analyst, the oil stocks have been pricing in the current strip, while the gas stocks are providing a 10%-15% discount based on implied commodity prices. Furthermore, the firm has a relative preference for the large-cap, gas exploration, and production companies possessing a selective exposure to the core oil names.
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. Now, the company plans to spend $100 million less capital in 2025, running ~11 rigs and investing ~$2.6 billion, yielding an estimated daily production of ~7.1 Bcfe/d. It also plans to build incremental productive capacity for additional $275 million by exiting 2025 with ~12 rigs.
While we acknowledge the potential of EXE 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 EXE and that has 100x upside potential, check out our report about this cheapest AI stock.
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