In this article, we will look at the 7 Cheap Energy Stocks Under $5.
On September 23, Hemant Taneja, CEO and managing partner of General Catalyst, joined CNBC television for an interview to discuss the connection between AI and the energy sector. He noted that the AI opportunity is fundamentally tied to the energy opportunity, due to the inherent energy requirement of AI. He argued that the world faces major challenges, including wars, a broken healthcare system, an energy crisis, and rapid AI growth. Taneja believes that this demands a new approach that emphasizes building companies with long-term strategies.
He highlighted that AI and energy are deeply connected. This is because AI requires massive computing power, which in turn depends on huge energy resources. Taneja noted that over the next 20 to 30 years, the energy sector must scale significantly to keep up with AI’s growth. He pointed out natural gas as a key short-term resource because of its abundance, but stressed the necessity of scaling renewable infrastructure, including solar, for a sustainable future. Moreover, he also believes that long-term breakthroughs in fusion energy also hold promise, and his firm invests in startups pursuing these innovations. He stressed the need for building resilient systems, whether in healthcare, energy, or supply chains, through collaborations and innovation. He also referenced his new book, which advocates for principles to create such enduring change in capitalism, focusing on how technology and energy infrastructure must evolve hand in hand for society’s benefit.
With that, let’s take a look at the 7 Cheap Energy Stocks Under $5.
Our Methodology
To curate the list of 7 Cheap Energy Stocks Under $5, we used the Finviz Stock Screener, Seeking Alpha, and Insider Monkey’s Q2 2025 database. Using the Screener, we aggregated a list of Energy stocks trading under $5 and below the forward P/E ratio of 15. Next, we cross-checked the P/E ratio from Seeking Alpha and ranked the stocks in ascending order of the number of hedge fund holders sourced from Insider Monkey’s database.
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).
7 Cheap Energy Stocks Under $5
7. Imperial Petroleum Inc. (NASDAQ:IMPP)
Price: $4.89
P/E Ratio: 4.41
Imperial Petroleum Inc. (NASDAQ:IMPP) is one of the Cheap Energy Stocks to Buy Under $5. On September 5, Imperial Petroleum Inc. (NASDAQ:IMPP) released its fiscal second-quarter results for 2025. The stock is up more than 38.66% since the release.
The company topped Wall Street estimates, with EPS of $0.35 ahead of the consensus by $0.31. Moreover, the revenue of $36.35 decreased 22.73% year-over-year, but was still ahead of the consensus by $6.65 million.
After the release on September 10, Maxim analyst Tate Sullivan raised the firm’s price target on Imperial Petroleum Inc. (NASDAQ:IMPP) from $5.5 to $6, while maintaining a Buy rating on the stock. The analyst noted that the fiscal second quarter results were much better than the expectations, mainly driven by the higher shipping rates for both existing tankers. In addition, the company also acquired seven dry bulk ships during the quarter. He noted that the demand for dry bulk and energy imports remains solid from China.
Imperial Petroleum Inc. (NASDAQ:IMPP) is a Greece-based company that specializes in international shipping and transportation of liquefied petroleum and petrochemical products.
6. Ultrapar Participações S.A. (NYSE:UGP)
Price: $3.96
P/E Ratio: 8.86
Ultrapar Participações S.A. (NYSE:UGP) is one of the Cheap Energy Stocks to Buy Under $5. Ultrapar Participações S.A. (NYSE:UGP) is up more than 18.33% since the release of its fiscal second quarter results for 2025, on August 15.
The company posted a revenue of $34.06 billion, which grew 5.29% year-over-year. Notably, the net income of $1.09 billion also grew 148.53% year-over-year. Management is expecting seasonally stronger volumes and profitability improvement for Ipiranga in the next quarter.
Recently, on September 26, Goldman Sachs raised the price target on Ultrapar Participações S.A. (NYSE:UGP) from $4 to $4.5, while maintaining a Buy rating on the stock.
Ultrapar Participações S.A. (NYSE:UGP) is a Brazilian company focused on automotive fuel retail and related industries.
5. Greenfire Resources Ltd. (NYSE:GFR)
Price: $4.57
P/E Ratio: 5.01
Greenfire Resources Ltd. (NYSE:GFR) is one of the Cheap Energy Stocks to Buy Under $5. On September 22, BMO Capital analyst Tariq Saad downgraded Greenfire Resources Ltd. (NYSE:GFR) from Outperform to Market Perform, while keeping the price target unchanged at C$8.
The analyst noted that the firm anticipates the company to materially outspend its cash flow in 2026, which will drive its leverage higher. The company reported its fiscal second-quarter results on August 6. It produced 15,748 barrels of bitumen per day despite a steam generator failure. This issue reduced production by about 1,500 to 2,250 barrels per day.
Moreover, the company generated $17.7 million in operating cash flow and $33.8 million in adjusted funds flow. Whereas the capital expenditures were $10.8 million, down from $23 million last year. Management noted that they are working with Alberta regulators to reduce sulphur dioxide emissions, which previously exceeded limits. Moreover, sulphur removal facilities costing $11.3 million are expected to be installed by Q4 2025 to resolve this.
Greenfire Resources Ltd. (NYSE:GFR) is an energy company focused on producing oil from the Athabasca oil sands in Alberta, Canada.
4. Baytex Energy Corp. (NYSE:BTE)
Price: $2.27
P/E Ratio: 14.91
Baytex Energy Corp. (NYSE:BTE) is one of the Cheap Energy Stocks to Buy Under $5. On September 30, TD Securities lowered the firm’s price target on Baytex Energy Corp. (NYSE:BTE) from $4.5 to $4, while keeping a Buy rating on the stock.
The rating comes after the company topped revenue and EPS estimates for its fiscal second quarter of 2025. Baytex Energy Corp. (NYSE:BTE) posted $608.30 million in revenue, down 25.78% year-over-year but ahead of expectations by 49.06 million. In addition, the EPS of $0.14 also topped the consensus by $0.11. Management noted that its Pembina Duvernay wells reached a record peak initial production rate averaging 1,865 barrels of oil equivalent per day per well. While the overall production reached 148,095 boe/d for the quarter, with 84% oil and NGL, a 2% increase in output per share compared to Q2 2024.
Baytex Energy Corp. (NYSE:BTE) is a Canadian energy company focused on acquiring, developing, and producing crude oil and natural gas.
3. Amplify Energy Corp. (NYSE:AMPY)
Price: $4.85
P/E Ratio: 13.86
Amplify Energy Corp. (NYSE:AMPY) is one of the Cheap Energy Stocks to Buy Under $5. Amplify Energy Corp. (NYSE:AMPY) is up more than 33% since the release of its fiscal second quarter results on August 6, 2025.
The company posted a revenue of $68.36 million, down 14.01% year-over-year and below expectations by $154,000. However, the EPS of $0.15 topped the consensus by $0.05. Management noted that they are strategically focused on simplifying their portfolio, becoming more oil-weighted, reducing debt, lowering operating costs, and streamlining the organization. Moreover, the company is also pursuing divestiture of its assets in East Texas and Oklahoma through TenOaks Energy Advisors and has completed the sale of non-operated Eagle Ford assets for $23 million.
After the release, on August 23, Poe Fratt from Alliance Global Partners reiterated a Buy rating on Amplify Energy Corp. (NYSE:AMPY) with a price target of $6.
Amplify Energy Corp. (NYSE:AMPY) is an independent oil and natural gas company focused on acquiring, developing, and producing oil and natural gas properties in key US regions.
2. Borr Drilling Limited (NYSE:BORR)
Price: $2.80
P/E Ratio: 14.87
Borr Drilling Limited (NYSE:BORR) is one of the Cheap Energy Stocks to Buy Under $5. Borr Drilling Limited (NYSE:BORR) is up more than 9.5% since the release of its fiscal second quarter of 2025, on August 13. The company topped Wall Street revenue and EPS estimates; however, analysts still have a cautious outlook on the stock.
Borr Drilling Limited (NYSE:BORR) posted $267.70 million in revenue, down 1.54% year-over-year but ahead of expectations by $5.46 million. The EPS of $0.14 also topped estimates by $0.04. After the release, on August 30, Truls Olsen from Fearnley Securities downgraded the stock to Hold while keeping the price target of $2.5. More recently, on September 11, Scott Gruber from Citi also initiated the stock with a Hold rating and a price target of $3.25.
Borr Drilling Limited (NYSE:BORR) is an offshore shallow-water drilling contractor specializing in the ownership, operation, and contracting of modern jack-up drilling rigs for oil and gas exploration and production.
1. Ring Energy, Inc. (NYSE AMERICAN:REI)
Price: $1.05
P/E Ratio: 5.83
Ring Energy, Inc. (NYSE AMERICAN:REI) is one of the Cheap Energy Stocks to Buy Under $5. Ring Energy, Inc. (NYSE AMERICAN:REI) posted mixed results for its fiscal second quarter of 2025 on August 6. However, the stock is up more than 48.5% since the release. Wall Street is also bullish on the stock.
Ring Energy, Inc. (NYSE AMERICAN:REI) posted a revenue of $82.60 million for the quarter, reflecting a 16.68% decrease year-over-year and below expectations by $265,910. On the bright side, the EPS of $0.05 topped Wall Street estimates by $0.02. After the release, on August 11, Michael Markidis from BMO Capital raised the firm’s price target from C$19 to C$20, with a Buy rating. More recently, on August 12, Pammir Bir from RBC Capital also reiterated a Buy rating on the stock with a price target of C$21.
Ring Energy, Inc. (NYSE AMERICAN:REI) also announced its third-quarter debt reduction targets. The company aims to reduce its debt by approximately $18 million during the third quarter.
Ring Energy, Inc. (NYSE AMERICAN:REI) is an independent oil and gas company focused on exploration, development, and production in the Permian Basin of Texas.
While we acknowledge the potential of REI 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 REI and that has 100x upside potential, check out our report about this cheapest AI stock.
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