We recently published a list of the 13 Best Energy Stocks to Buy Right Now. In this article, we are going to take a look at where Hess Corporation (NYSE:HES) stands against other best energy stocks.
The worldwide energy industry has recently been rattled by a combination of factors, including the trade war sparked by President Trump’s tariffs, the prospects of a global economic slowdown, and the sharp slump in crude oil prices. As a result, at the time of writing this piece, the overall energy sector has fallen by 4.64% since the beginning of 2025, compared to declines of almost 3.6% by the wider market.
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The steep downturn in global crude prices has particularly hit hard, and there appear to be no signs of a reversal as of yet, since the supply is projected to increase while demand forecasts keep falling. The West Texas Intermediate (WTI) oil price fell to just over $57 a barrel earlier this week, a level it last hit during the peak of the COVID-19 pandemic in 2021. However, it has slightly recovered since then and is currently hovering just around the $61 mark, buoyed by hopes of a breakthrough in looming trade talks between the US and China. Still, the low prices and higher costs due to tariffs on steel and aluminum have pushed many American oil producers to put the brakes on drilling new wells.
However, the same cannot be said about natural gas and its liquified state, LNG, which has especially fared well under the Trump administration. On his very first day in office, the President ordered the resumption of LNG export approvals and has started rolling back environmental regulations that slowed projects. The United States is already the largest LNG exporter in the world, with a record 11.9 billion cubic feet per day of outflows in 2024. These numbers are now expected to receive a significant boost, as the US Energy Information Administration has forecasted the country’s LNG exports to 15.2 bcfd this year. Europe remains the top destination for American LNG, accounting for over 75% of total orders this year. The continent has had to rely significantly more on imported LNG and less on gas delivered via pipelines from Russia since the Putin government’s invasion of Ukraine in 2022.
The ongoing AI boom is also expected to be a significant growth factor for the natural gas industry, which has emerged as the leading contender to power its data centers. These energy-intensive facilities could consume as much as 9% of all energy generated in the US by 2030, and this energy needs to come from a relatively clean, flexible, and reliable source that is abundantly available in the form of natural gas. According to data from S&P Global Commodity Insights, if even a quarter of the projected data center load is supplied by gas-fired generation, this would translate to a 2% increase in total US gas demand in 2040.
The price of natural gas has more than doubled since March 2024, offering a significant lifeline for America’s oil and gas sector in the last quarter, especially with the plunging crude prices denting their profits.
An oil tanker sailing across the horizon, conveying the importance of crude oil transportation for the company.
Methodology:
To collect data for this article, we scanned Insider Monkey’s database of hedge funds’ stock holdings and picked the top 13 companies operating in the energy sector with the highest number of hedge fund investors in Q4 of 2024. The following are the Best Energy Stocks According to Hedge Funds.
At Insider Monkey, we are obsessed with 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Hess Corporation (NYSE:HES)
No. of Hedge Fund Holders: 92
Hess Corporation (NYSE:HES) is a leader in deepwater development and production, with top-quartile performance in offshore drilling and project delivery. The company is one of the largest gross-operated deepwater producers in the Gulf of America, with offshore assets also in Asia Pacific and South America.
Hess Corporation (NYSE:HES) beat profit estimates in Q1 2025 despite weak oil prices, reporting an adjusted EPS of $1.81 against expectations of $1.61. However, the company’s revenue of $2.94 billion fell below expectations by $67.3 million. The company’s Guyana output fell 3.7% to 183,000 bopd during the quarter, while total production remained flat at 476,000 boepd. These numbers are expected to receive a boost as Hess revealed that its fourth floating oil production facility in Guyana, with an initial gross production capacity of approximately 250,000 bopd, is expected to start up in the third quarter of 2025.
Hess Corporation (NYSE:HES) is set to be acquired by the oil supermajor Chevron in a $53 billion deal, once it clears an arbitration challenge filed by Exxon and CNOOC over its Guyana assets. The court hearing for the dispute is set for May 26. However, Chevron seems confident in completing the planned acquisition and has already bought about 4.99% of Hess Corporation’s common shares earlier this year.
Overall, HES ranks 4th on our list of the best energy stocks to buy right now. While we acknowledge the potential of HES as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher 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 HES 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.
Disclosure: None. This article is originally published at Insider Monkey.
