10 Best Energy Stocks To Buy According to Hedge Funds

1. Exxon Mobil Corporation (NYSE:XOM)  

Number of Hedge Fund Investors: 92  

Exxon Mobil Corporation (NYSE:XOM) is a global leader in the energy sector, with a broad range of operations that include exploration and production, refining, manufacturing, and various activities across its upstream, downstream, and chemical segments. The company is making significant investments in low-carbon technologies, such as biofuels and hydrogen while continuing to dominate the oil and gas industry.

Exxon Mobil Corporation (NYSE:XOM) has plans to invest $10 billion in offshore oil operations in Nigeria, according to a statement from the Nigerian presidency on September 26 reported by Reuters. The investment will focus on developing the Owo project, a deep-water project estimated to cost $10 billion. The company also plans to increase its oil output by 50,000 barrels per day over the next few years, with an annual investment of $2.5 billion.

The investment is part of the company’s efforts to expand its operations in Nigeria. Exxon Mobil Corporation (NYSE:XOM) is working closely with the Nigerian government to secure favorable fiscal arrangements as Nigeria’s oil production has increased by 10.15% in the second quarter, averaging 1.41 million barrels per day.

On October 24, Federal regulators also issued Exxon Mobil Corporation (NYSE:XOM) and Qatar Energy LNG joint venture a 3-year extension to finish building the Golden Pass LNG plant. The extension was granted due to delays when the lead construction contractor Zachry Holdings filed for bankruptcy in March when the project was found to cost at least $2.40 billion over the original budget. The project was a former gas-import terminal that was converted to process natural gas for LNG exports and is one of two largest LNG facilities in the US which is expected to significantly expand.

While we acknowledge the potential of Exxon Mobil Corporation (NYSE:XOM) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than XOM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

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