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7 Best Oil and Gas Penny Stocks to Buy According to Analysts

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In this article, we will shed light on the 7 Best Oil and Gas Penny Stocks to Buy According to Analysts.

Despite the ongoing government shutdown, the U.S. stock market has shown resilience, with the S&P 500 and Nasdaq reaching new record highs, highlighting investor appetite for equities beyond large-cap names. According to Reuters, on September 30, oil prices dropped, with Brent crude closing at $67.02 a barrel, along with West Texas Intermediate at $62.37, as investors prepared for a potential hike in OPEC+ output in November and the expected restart of crude exports from Iraq’s Kurdistan region. Further supply concerns put pressure on margins for U.S. shale producers, additionally challenged by record output levels and weaker demand outlooks.

CNBC also recently noted that big U.S. energy companies will be laying off a large number of employees in 2025. ConocoPhillips has proposed layoffs of up to 25%, Exxon Mobil plans to cut 2,000 jobs, and Chevron anticipates reducing up to 20% of its staff through 2026. Roughly 4,000 oil and gas jobs were lost as of August, according to the Bureau of Labor Statistics, indicating a growing strain in the industry. CNBC also revealed on October 1 that KKR, a private equity behemoth, broadened its alliance with Abu Dhabi National Oil Company (ADNOC) by acquiring a minority interest in ADNOC Gas Pipeline Assets, adding an international dimension.

With this backdrop, let’s move on to our list of the 7 best oil and gas penny stocks to buy according to analysts.

Our Methodology

To curate our list of the 7 best oil and gas penny stocks to buy according to analysts, we used the Finviz stock screener to identify oil & gas stocks trading below $5 per share. From that pool, we shortlisted stocks with a potential upside of at least 10% that are also well-liked by elite hedge funds, according to Insider Monkey’s hedge fund database as of Q2 2025. Finally, we selected the top seven stocks with the highest upside and arranged the stocks in ascending order of their respective upside.

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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).

Note: All pricing data is as of market close on October 13, 2025.

7. Ultrapar Participações S.A. (NYSE:UGP)

Upside Potential: 14.2%

Number of Hedge Fund Holders: 9

Share Price: $3.95

Ultrapar Participações S.A. (NYSE:UGP) is one of the 7 best oil and gas penny stocks to buy according to analysts, supported by hedge fund interest and strong upside potential.

Higher operating cash generation and the execution of critical projects helped Ultrapar Participações S.A. (NYSE:UGP) report a 134% year-over-year increase in second-quarter net income to $215 million in September 2025. Recurring EBITDA increased 15% to $306 million, while revenue hit $34.1 billion. With $2.35 billion in net debt and a net debt-to-EBITDA ratio of 1.9x, the balance sheet was strong.

Furthermore, by completing the purchase of Hydrovias and moving on with the construction of the Ultrapar Participações S.A. (NYSE:UGP) railway branch, the company strengthened its logistics operations and advanced its expansion strategy.

Even though these actions improve development prospects, Ultrapar Participações S.A. (NYSE:UGP) still faces operational difficulties, including decreased volumes at Ipiranga and Ultragaz, the possibility of increased competition as Petrobras considers entering the LPG market, and regulatory uncertainty.

Ultrapar Participações S.A. (NYSE:UGP), which is one of the best oil and gas penny stocks, is involved in lubrication services, convenience retail, LPG, and fuel distribution in Brazil.

6. Transocean Ltd. (NYSE:RIG)

Upside Potential: 18.0%

Number of Hedge Fund Holders: 32

Share Price: $3.20

Transocean Ltd. (NYSE:RIG) is one of the 7 best oil and gas penny stocks to buy according to analysts, supported by hedge fund interest and strong upside potential.

On October 1, 2025, to strengthen its backlog in important offshore markets, Transocean Ltd. (NYSE:RIG) announced contract extensions for two of its ultra-deepwater drill ships totaling around $243 million. BP will contribute an estimated $232 million towards these contracts, having exercised a 365-day option for the Deepwater Atlas in the United States Gulf of Mexico. Additionally, Petrobras added $11 million by exercising its 30-day option for the Deepwater Mykonos in Brazil.

Moreover, the extensions demonstrate Transocean Ltd. (NYSE:RIG)’s capacity to obtain multi-region commitments and the ongoing need for high-specification deep water rigs in both the Americas. Furthermore, to further strengthen liquidity and operational stability, the company also issued a $500 million private offering of Senior Priority Guaranteed Notes due 2032 at 7.875% interest, with a closing date of mid-October.

Transocean Ltd. (NYSE:RIG) is one of the top local suppliers of offshore contract drilling services for gas and oil wells. It is one of the best oil and gas penny stocks.

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The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

The best part? You can discover everything about this company and its groundbreaking technology right now.

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If you’re thinking about getting in, don’t wait – because once Wall Street catches wind of this story, the easy money will be gone.

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AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

Even Sam Altman, the founder of OpenAI, issued a stark warning:

“The future of AI depends on an energy breakthrough.”

Elon Musk was even more blunt:

“AI will run out of electricity by next year.”

As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity.

And that’s where the real opportunity lies…

One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.

As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.

The “Toll Booth” Operator of the AI Energy Boom

  • It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
  • It’s one of the only global companies capable of executing large-scale, complex EPC (engineering, procurement, and construction) projects across oil, gas, renewable fuels, and industrial infrastructure.
  • It plays a pivotal role in U.S. LNG exportation—a sector about to explode under President Trump’s renewed “America First” energy doctrine.

Trump has made it clear: Europe and U.S. allies must buy American LNG.

And our company sits in the toll booth—collecting fees on every drop exported.

But that’s not all…

As Trump’s proposed tariffs push American manufacturers to bring their operations back home, this company will be first in line to rebuild, retrofit, and reengineer those facilities.

AI. Energy. Tariffs. Onshoring. This One Company Ties It All Together.

While the world is distracted by flashy AI tickers, a few smart investors are quietly scooping up shares of the one company powering it all from behind the scenes.

AI needs energy. Energy needs infrastructure.

And infrastructure needs a builder with experience, scale, and execution.

This company has its finger in every pie—and Wall Street is just starting to notice.

Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation.

While most energy and utility firms are buried under mountains of debt and coughing up hefty interest payments just to appease bondholders…

This company is completely debt-free.

In fact, it’s sitting on a war chest of cash—equal to nearly one-third of its entire market cap.

It also owns a huge equity stake in another red-hot AI play, giving investors indirect exposure to multiple AI growth engines without paying a premium.

And here’s what the smart money has started whispering…

The Hedge Fund Secret That’s Starting to Leak Out

This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.

They’re sharing it quietly, away from the cameras, to rooms full of ultra-wealthy clients.

Why? Because excluding cash and investments, this company is trading at less than 7 times earnings.

And that’s for a business tied to:

  • The AI infrastructure supercycle
  • The onshoring boom driven by Trump-era tariffs
  • A surge in U.S. LNG exports
  • And a unique footprint in nuclear energy—the future of clean, reliable power

You simply won’t find another AI and energy stock this cheap… with this much upside.

This isn’t a hype stock. It’s not riding on hope.

It’s delivering real cash flows, owns critical infrastructure, and holds stakes in other major growth stories.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

This isn’t just about making money – it’s about being part of the future.

So, buckle up and get ready for the ride of your investment life!

Act Now and Unlock a Potential 100+% Return within 12 to 24 months.

We’re now offering month-to-month subscriptions with no commitments.

For a ridiculously low price of just $9.99 per month, you can unlock our in-depth investment research and exclusive insights – that’s less than a single fast food meal!

Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

1. Head over to our website and subscribe to our Premium Readership Newsletter for just $9.99.

2. Enjoy a month of ad-free browsing, exclusive access to our in-depth report on the Trump tariff and nuclear energy company as well as the revolutionary AI-robotics company, and the upcoming issues of our Premium Readership Newsletter.

3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!


No worries about auto-renewals! Our 30-Day Money-Back Guarantee applies whether you’re joining us for the first time or renewing your subscription a month later!