15 Small-Cap Energy Stocks Hedge Funds Are Buying

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1. Expand Energy Corp. (NASDAQ:EXE)

Market Capitalization as of April 25: $24.5 billion

Number of Hedge Fund Holders: 71

Expand Energy Corp. (NASDAQ:EXE) is an independent natural gas production company in the US. It acquires, explores, and develops properties to produce oil, natural gas, and natural gas liquids. It holds interests in the Marcellus Shale in the northern Appalachian Basin in Pennsylvania, the Marcellus & Utica Shales in Ohio & West Virginia, and the Haynesville & Bossier Shales in Louisiana.

In Q4 2024, Expand Energy operated an average of 12 rigs to drill 44 wells and brought 41 wells online. This helped the company achieve a daily production of about 6.41 billion cubic feet equivalent (Bcfe). 91% of this was natural gas. Recently, the company approved a new $1 billion share buyback program.

In 2025, Expand Energy aims to run 12 rigs and invest ~$2.7 billion to increase production to about 7.1 Bcfe/d. The company plans to build incremental productive capacity by allocating an additional $300 million to run 15 rigs in H2 2025. Expand Energy Corp. (NASDAQ:EXE) aims to achieve a production rate of ~7.2 Bcfe/d by the end of 2025 and further grow to an average of 7.5 Bcfe/d in 2026. The company is also committed to achieving net-zero emissions by 2035.

While we acknowledge the growth potential of Expand Energy Corp. (NASDAQ:EXE), our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than EXE but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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