15 Small-Cap Energy Stocks Hedge Funds Are Buying

7. Coterra Energy Inc. (NYSE:CTRA)

Market Capitalization as of April 25: $19.39 billion

Number of Hedge Fund Holders: 48

Coterra Energy Inc. (NYSE:CTRA) is an independent oil and gas company that explores, develops, and produces oil, natural gas, and natural gas liquids in the US. The company sells its natural gas to industrial customers, local distribution companies, oil and gas marketers, energy companies, pipeline companies, and power generation facilities.

In 2024, Coterra’s oil production exceeded the high end of its initial guidance by ~4% and achieved a 13% organic year-over-year growth. This averaged 108.8 thousand barrels of oil per day (MBopd). Oil contributed to 50% of the company’s pre-hedge revenue during Q4. This growth is attributed to the integration of newly acquired Permian assets from Franklin Mountain and Avant, where Coterra is increasing activity and capital investment.

On February 27, JPMorgan raised the stock’s price target to $36 from $35, while keeping an Overweight rating. This sentiment followed the company’s announcement of oil & gas volume exceeding forecasts and remarkable capital efficiency. Coterra projects oil production to average between 152 and 168 MBopd for the full year 2025, which represents a 47% year-over-year increase at the midpoint of guidance.