Energy stocks have performed strongly in 2025 so far and have outpaced the broader markets. Investors seem to be shifting from the tech play in favor of companies with high free cash flow that can pay dividends and overcome economic downturns.
READ ALSO: 10 Cheap Technology Stocks to Buy According to Hedge Funds and 10 Best Stocks Under $3 to Buy Now.
Rob Thummel, senior portfolio manager at Tortoise Capital, highlighted the energy sector’s compelling investment characteristics, such as high free cash flow yields, dividend growth, and stock buybacks.
Simon Lack, portfolio manager at Catalyst Energy Infrastructure Fund, believes that tariffs are unlikely to impact US energy exports significantly. Additionally, a favorable regulatory environment under the Trump administration is expected to help lower production costs for energy companies. Lack noted that President Trump has signaled willingness to reconsider tariffs if other countries purchase more US oil and gas. This reinforces a positive outlook for the sector.
Natural gas prices have surged by over 30% in 2025. This makes natural gas the standout performer in the energy sector. Natural gas companies are benefiting from the bullish price movements.
With this background in mind, let’s take a look at the 10 best gas stocks to buy according to billionaires.
An industrial facility emitting natural gas from large pipes, with workers in the foreground.
Our Methodology
To compile our list of the 10 best gas stocks to buy according to billionaires, we looked for the largest gas companies. We also reviewed our own rankings, financial media reports, ETFs, and various online resources to compile a list of the best gas stocks. Next, we focused on the top 10 gas stocks most favored by billionaires. Data for the number of billionaire investors for each stock was taken from Insider Monkey’s Q4 2024 database. Finally, the 10 best gas stocks to buy were ranked in ascending order based on the number of billionaires holding stakes in them as of Q4 2024.
Additionally, we mentioned the hedge fund sentiment surrounding each stock, which was taken from Insider Monkey’s Q4 2024 database of more than 1,000 elite hedge funds.
Why do we care about what hedge funds do? 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).
10 Best Gas Stocks to Buy According to Billionaires
10. The Williams Companies, Inc. (NYSE:WMB)
Number of Billionaire Investors: 13
Number of Hedge Fund Holders: 73
The Williams Companies, Inc. (NYSE:WMB) is an American energy company that specializes in natural gas processing and transportation. With its 33,000-mile pipeline infrastructure, the company moves approximately one-third of the natural gas in the US. The Williams Companies, Inc. (NYSE:WMB) ranks among the best gas stocks to buy according to billionaires.
On February 13, Stifel analysts updated their outlook on The Williams Companies, Inc. (NYSE:WMB) and raised the price target from $61 to $62 while reiterating a “Buy” rating. This update came after the company’s Q4 2024 results, which met analyst forecasts and included increased EBITDA guidance for 2025. The Williams Companies, Inc. (NYSE:WMB) emphasized its strategic position to support multiple prospects and growing demand for natural gas, particularly from sectors like AI data centers, power generation, and LNG. While the company has not announced a specific AI data center project, it is preparing for a significant opportunity by ordering long lead time items. The Williams Companies, Inc. (NYSE:WMB) also expressed confidence in exceeding its long-term growth guidance that is currently set at 5-7%. The company’s robust balance sheet allows for potential growth through acquisitions. Stifel’s updated outlook and price target reflect optimism about the company’s ability to expand its market presence and financial performance.
9. Canadian Natural Resources Limited (NYSE:CNQ)
Number of Billionaire Investors: 14
Number of Hedge Fund Holders: 54
Canadian Natural Resources Limited (NYSE:CNQ) is a crude oil and natural gas production company with operations in Western Canada, the UK portion of the North Sea, and Offshore Africa. The company has a diversified asset portfolio with a balanced mix of natural gas, light crude oil, heavy crude oil, bitumen, and synthetic crude oil. Canadian Natural Resources Limited (NYSE:CNQ) ranks among the best gas stocks to invest in.
The company is significantly expanding its oil sands operations through strategic moves. Following the acquisition of Chevron’s 20% interest in the Athabasca Oil Sands Project (AOSP) in December 2024 and a working interest swap with Shell that is expected to close in the first half of 2025, Canadian Natural Resources Limited (NYSE:CNQ) will hold 100% ownership of the Albian mines and 80% of the non-operated Scotford Upgrader. Combined with the company’s Horizon oil sands mine, Canadian Natural Resources Limited (NYSE:CNQ) is targeting a total production capacity of 592,000 barrels per day (bbl/d), up from 570,000 bbl/d. This will be supported by the Horizon Reliability Enhancement Project and Scotford Upgrader Debottleneck Project, which was completed in 2024. These acquisitions are immediately cash flow accretive and will help deliver decades of stable production with no decline.