In this article, we will take a look at some of the most profitable oil stocks to buy now.
Often, industries like tech and AI attract all the attention, and rightly so, yet there exists another sector that hasn’t performed so poorly either. In this era of global demand uncertainty and price swings, investors are on the search for stocks that offer consistent dividends and high returns.
While there are many uncertainties when investing in the oil sector, particularly the price volatility, it’s one of the popular industries to consider due to the potential for high profits and strong liquidity. Although quite risky, such stocks create fast wealth accumulation for investors, given a favorable macroeconomic environment.
That being said, investing in oil companies isn’t a new concept; many previous studies have examined the impact of investing in these stocks. As stated by Mack Wilowski, oil and gas companies were among the biggest gainers in the S&P 500 during the third quarter of 2023 amid looming government shutdown and global economic uncertainty.
Our Methodology
We have compiled a list of the 9 most profitable oil stocks to buy now. Using Finviz’s stock screener, we have selected stocks in the energy sector that have a return on equity (ROE) of 30% or more, a positive net profit margin, and positive EPS growth over the past three years. The stocks are ranked in ascending order according to their trailing 12-month (TTM) EPS as of September 30, 2025.
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).
9. Permian Basin Royalty Trust (NYSE:PBT)
EPS (TTM) as of September 30, 2025: 0.35
Number of Hedge Fund Holdings: 5
During the second quarter, Avondale Wealth Management reduced its position in Permian Basin Royalty Trust (NYSE:PBT) by 74.1% following the sale of 21,500 shares. According to the latest disclosure with the SEC, the wealth management firm now owns 7,500 shares of the company’s stock, valued at $93,000.
The company’s financials are a testament to its strong market position. While the market delivered year-to-date and five-year returns of 13.25% and 99.71%, respectively, Permian Basin Royalty Trust (NYSE:PBT) returned an attractive 64.43% and 751.83%, respectively.
Earlier on September 19, 2025, Argent Trust Company, a trustee of Permian Basin Royalty Trust (NYSE:PBT), announced a cash distribution of $0.115493 per unit to the unitholders of beneficial interest. Scheduled for payment on October 15, 2025, the amount will be paid to all unitholders of record on September 30, 2025.
Permian Basin Royalty Trust (NYSE:PBT), headquartered in Dallas, Texas, is a holder of royalty interests in various oil and gas properties. Founded in 1980, the company is committed to delivering consistent income to its shareholders.
8. Dorchester Minerals, L.P. (NASDAQ:DMLP)
EPS (TTM) as of September 30, 2025: 1.73
Number of Hedge Fund Holdings: 4
According to a recent disclosure with the SEC, Goldman Sachs Group Inc. raised its position in Dorchester Minerals, L.P. (NASDAQ:DMLP) by 6.3% during the first quarter. Following the acquisition of 2,101 shares, the global bank now owns 35,684 shares of the energy company’s stock, which translates to an investment of $1,073,000 and an ownership of nearly 0.08%.
The one thing that is truly interesting about Dorchester Minerals, L.P. (NASDAQ:DMLP) is its business model. This low-cost yet high-margin model enables the company to maintain its expansion and capitalize on emerging growth opportunities without draining a lot of capital at once.
Despite limited power over pricing, the solid liquidity position of Dorchester Minerals, L.P. (NASDAQ:DMLP) enables its operations to remain fruitful. In just five years, the company delivered a return of an impressive 322.44%, in contrast to the market’s return of mere 99.71%.
Dorchester Minerals, L.P. (NASDAQ:DMLP), headquartered in Dallas, Texas, specializes in the acquisition, ownership, and administration of royalty properties, including overriding royalty, net profits, and leasehold interests. Incorporated in 1982, the company is committed to maximizing value.
7. Hess Midstream LP (NYSE:HESM)
EPS (TTM) as of September 30, 2025: 2.67
Number of Hedge Fund Holdings: 25
Eagle Global Advisors LLC raised its position in Hess Midstream LP (NYSE:HESM) by 53.7% during the second quarter following the purchase of 857,669 shares, making the stock its fourth largest holding. According to a recent disclosure with the SEC, the firm now owns 1.14% of the company through the acquisition of 2,453,834 shares and an investment of $94,497,000.
Many believe that now is a good time to invest in Hess Midstream LP (NYSE:HESM) due to its new drilling plans. Given less drilling activity and thus reduced throughput in the company’s system, the near-term growth prospects seem somewhat modest. However, the stability and sustainability of the company’s base business make it one of the best investments out there.
Having said that, Hess Midstream LP (NYSE:HESM) has one of the strongest contract structures in its industry. With minimum volume commitments (MVC) through 2033, Hess Midstream LP (NYSE:HESM) is well-positioned to achieve the guaranteed minimum revenue.
Hess Midstream LP (NYSE:HESM) is a Texas-based operator of midstream assets and provider of fee-based services to both Hess and third-party customers. With three main segments: Gathering, Processing and Storage, and Terminaling and Export, the company fulfills its commitment to high safety and environmental standards.
6. Western Midstream Partners, LP (NYSE:WES)
EPS (TTM) as of September 30, 2025: 3.17
Number of Hedge Fund Holdings: 5
During the second quarter, Eagle Global Advisors LLC trimmed its stake in Western Midstream Partners, LP (NYSE:WES) by 18.8%, making the stock its seventh largest holding. With the offload of 446,480 shares, the fund owns 1,925,950 shares of the company’s stock, reflecting an ownership of 0.51% and an investment of $74,534,000.
While examining Western Midstream Partners, LP (NYSE:WES), we can’t ignore its solid dividend yield of over 9%. From an expanding asset base to disciplined capital management, the company serves as an attractive distribution play, particularly in the Delaware Basin.
Just recently, the company announced its entry into the water infrastructure market through the acquisition of Aris Water Solutions. This $1.5 billion deal is expected to enhance the company’s offerings and contribute to free cash flow in the year ahead. As long as the demand for energy needs and data centres keeps surging, we have a good reason to believe in the prospects of Western Midstream Partners, LP (NYSE:WES).
Western Midstream Partners, LP (NYSE:WES) is a Texas-based midstream energy company with assets in Texas, New Mexico, and the Rocky Mountains. Incorporated in 2007, the company is focused on improving lives through efficient energy delivery.
5. Cheniere Energy Partners, L.P. (NYSE:CQP)
EPS (TTM) as of September 30, 2025: 4.07
Number of Hedge Fund Holdings: 5
During the second quarter, ORG Wealth Partners LLC lifted its position in Cheniere Energy Partners, L.P. (NYSE:CQP) by 331.6% through the purchase of 10,771 shares. According to a recent disclosure with the SEC, the firm now owns 14,019 shares of the company’s stock, translating to an investment of around $776,000.
For investors focused on income, Cheniere Energy Partners, L.P. (NYSE:CQP) provides a compelling investment backed by an impressive dividend yield of 6.05% and an attractive return on equity. What’s even more interesting is that the company has secured long-term contracts that not only position the company well in its industry but also indicate its potential in the long haul.
Although Cheniere Energy Partners, L.P. (NYSE:CQP) is built on a complex structure, which is not that easy for an ordinary investor to understand, the leadership has high plans for the company that offset the visible intricacies. During its latest earnings call, the management outlined its commitment to generate over $25 billion in available cash through 2030 and achieve more than $25 per share annual run-rate in distributable cash flow.
Cheniere Energy Partners, L.P. (NYSE:CQP) is a Texas-based provider of liquefied natural gas (LNG) to integrated energy companies, utilities, and energy trading companies. Founded in 2003, the company is dedicated to clean and affordable energy.
4. MPLX LP (NYSE:MPLX)
EPS (TTM) as of September 30, 2025: 4.11
Number of Hedge Fund Holdings: 13
Analysts at Wells Fargo have reiterated their ‘Overweight’ rating on MPLX LP (NYSE:MPLX), while cutting the price target to $59.00 from $60.00, implying a potential surge of about 18%. This 1.67% price target reduction is driven by the company’s recent sale of its Rockies gathering and processing (G&P) assets.
The research firm believes that this transfer of assets could impact the company’s future earnings, particularly the EBITDA. Additionally, the firm noted that higher outstanding debt from recent issuances will have a slightly adverse impact on MPLX LP (NYSE:MPLX).
Keeping this in mind, the overall positive outlook of MPLX LP (NYSE:MPLX) can’t be overlooked. With a solid 7.46% forward dividend yield, the company appears to be a compelling investment opportunity, exhibiting strong distribution coverage and robust growth in distributable cash flow.
MPLX LP (NYSE:MPLX), based in Findlay, Ohio, is a midstream energy infrastructure and logistics assets company operating through two segments: Crude Oil and Products Logistics, and Natural Gas and NGL Services. Incepted in 2012, the company is focused on seamlessly connecting energy sources to markets.
3. Sabine Royalty Trust (NYSE:SBR)
EPS (TTM) as of September 30, 2025: 4.85
Number of Hedge Fund Holdings: 5
During the second quarter, Moody National Bank Trust Division acquired a new stake in Sabine Royalty Trust (NYSE:SBR) through the purchase of 35,185 shares of the company’s stock. According to the recent filing with the SEC, the bank now owns nearly 0.24% of the company, which reflects an investment of approximately $2,346,000.
What is most liked about Sabine Royalty Trust (NYSE:SBR) is its dividend yield, standing at 6.70%. For investors, it appears a perfect way to benefit from the oil and gas cycle and receive stable dividends while waiting for its rebound. If we consider the company’s business model, it’s different yet appealing, being more of a financial wagon to transfer the royalties and other payments received to return to its shareholders as dividends.
So, if anyone’s looking for a stable monthly income, Sabine Royalty Trust (NYSE:SBR) is just the right stock. In five years, the company delivered a return of over 300% in contrast to the market’s return of nearly 100%.
Sabine Royalty Trust (NYSE:SBR) is a Texas-based holder of royalty and mineral interests in several producing oil and gas properties. Founded in 1982, the company is committed to providing cash distributions to its unitholders effectively.
2. Vista Energy, S.A.B. de C.V. (NYSE:VIST)
EPS (TTM) as of September 30, 2025: 5.37
Number of Hedge Fund Holdings: 21
ABS Direct Equity Fund LLC acquired a new stake in Vista Energy, S.A.B. de C.V. (NYSE:VIST) during the second quarter following the purchase of 20,000 shares of the company’s stock. According to a recent filing with the SEC, the firm has an investment of approximately $956,000 in the company, making the stock its twenty-fourth largest holding.
A major player in Argentina’s Vaca Muerta basin, Vista Energy, S.A.B. de C.V. (NYSE:VIST), is well-positioned for high medium-term production growth. From strategic alignment with national energy policy to overall industry leadership, the company offers a compelling investment opportunity.
What makes Vista Energy, S.A.B. de C.V. (NYSE:VIST) even more interesting is Vaca Muerta’s potential, which could more easily be understood by looking at the Permian Basin’s potential a decade ago. With a strong management team like the one the company currently has, anything is possible.
Vista Energy, S.A.B. de C.V. (NYSE:VIST) is a Mexican company that explores and produces oil and gas in Latin America. Founded in 2017, the company owns assets in an area of nearly 205,600 acres.
1. Texas Pacific Land Corporation (NYSE:TPL)
EPS (TTM) as of September 30, 2025: 19.33
Number of Hedge Fund Holdings: 34
During the second quarter, Ipswich Investment Management Co. Inc. lifted its holdings in Texas Pacific Land Corporation (NYSE:TPL) by 6.8% through the purchase of 290 shares of the company’s stock. According to a recent disclosure with the SEC, the firm now owns 4,535 shares, making the stock its twenty-seventh largest holding.
We already know that Texas Pacific Land Corporation (NYSE:TPL) is a premier Permian Basin landowner with strong financials. If we compare the 5-year return with the market’s return, the company has outperformed it by an impressive 458.49%. During its latest earnings, management highlighted the company’s resilience to commodity price swings.
While many doubt “peak Permian,” management is confident regarding its prospects as they believe Permian still has a long runway of untapped reserves. With an emphasis on innovation and efficiency in the Permian, Texas Pacific Land Corporation (NYSE:TPL) is well-positioned to capitalize on new technologies and the growth of unique well designs.
Texas Pacific Land Corporation (NYSE:TPL) is a Texas-based company specializing in land and resource management, as well as water services and operations businesses. Founded in 1888, the company is committed to optimizing its assets for long-term value.
While we acknowledge the potential of TPL 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 TPL and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
