10 Best Gas Stocks to Buy According to Billionaires

3. ConocoPhillips (NYSE:COP)

Number of Billionaire Investors: 16

Number of Hedge Fund Holders: 86

ConocoPhillips (NYSE:COP) is an American multinational energy corporation and one of the world’s largest independent exploration & production (E&P) companies based on oil and natural gas production and proved reserves. The company has a globally diversified asset portfolio with operations and activities in 14 countries. ConocoPhillips (NYSE:COP) ranks among the best gas stocks to buy.

On March 20, UBS analysts reaffirmed a “Buy” rating on ConocoPhillips (NYSE:COP) with a price target of $137. The firm’s analysis highlighted 4 key strengths that make the company the most favorably positioned large-cap oil exploration and production company for the next five years. First, ConocoPhillips (NYSE:COP) has extensive resource depth in North America. Second, the company’s strong financial health, which is reflected in a moderate debt-to-equity ratio of 0.39. Third, ConocoPhillips (NYSE:COP) offers attractive shareholder returns and has an impressive 55-year streak of consecutive dividend payments. Lastly, the company’s extensive backlog of long-cycle projects is expected to drive significant cash flow growth.

UBS projects a compound annual growth rate (CAGR) of 12% in cash flow per share (CFPS) and 20% in free cash flow per share (FCFPS) from 2025 to 2030. This projection is based on the assumption of a steady West Texas Intermediate (WTI) crude oil price of $70. UBS also noted that ConocoPhillips’ (NYSE:COP) projects are expected to start coming online next year and capital expenditures will decline from peak levels.