10 Best Commodity Stocks to Invest in According to Hedge Funds

4. ConocoPhillips (NYSE:COP)

Number of Hedge Fund Investors: 66

ConocoPhillips (NYSE:COP) is one of the largest independent exploration and production companies focused on crude oil, natural gas, and natural gas liquids (NGLs). The company operates across North America, Europe, Asia, and Australia.

ConocoPhillips (NYSE:COP) is actively pursuing strategic acquisitions to strengthen its portfolio and drive growth. The company recently finalized the acquisition of Marathon Oil Corporation. This acquisition will significantly enhance ConocoPhillips’ (NYSE:COP) presence in key U.S. shale basins, including the Permian, Eagle Ford, and Bakken. The company has developed a comprehensive integration plan aimed at achieving at least $500 million in synergies, primarily through reductions in overhead and operating costs. Furthermore, ConocoPhillips (NYSE:COP) expects to double this initial synergy target to $1 billion, driven by capital optimization and more efficient drilling and refracturing programs. By leveraging the combined strengths of both companies, ConocoPhillips (NYSE:COP) aims to achieve low-single-digit production growth in 2025 with a pro-forma capital expenditure (CapEx) of under $13 billion.

ConocoPhillips (NYSE:COP) is also making significant progress on the Willow project in Alaska and is focusing on engineering, procurement, and fabrication. The Willow project is anticipated to play a key role in the company’s production growth in the coming years. Additionally, ConocoPhillips (NYSE:COP) is advancing its Port Arthur LNG and Callaway expansion projects, which aim to enhance its position in the global LNG market and provide access to premium gas markets in Europe and Asia.