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.
8. Shell plc (NYSE:SHEL)
Number of Billionaire Investors: 14
Number of Hedge Fund Holders: 54
Shell plc (NYSE:SHEL) is a British multinational oil and gas company with operations in more than 70 countries. The company’s operations include its Integrated Gas and Upstream business and Downstream, Renewables, and Energy Solutions business. According to billionaires, Shell plc (NYSE:SHEL) is one of the best gas stocks to buy.
On March 19, TD Cowen raised its price target on Shell plc (NYSE:SHEL) to $82 from $81 and maintained a “Buy” rating. The firm highlighted the company’s strong position compared to its European peers and emphasized its ability to sustain attractive shareholder distributions even in lower-price environments. TD Cowen pointed out that this outlook is supported by Shell plc’s (NYSE:SHEL) expected reduction in capital expenditures and increased cash flow from major projects that are now coming online. The firm expects Shell plc (NYSE:SHEL) to reaffirm its 6% free cash flow guidance through 2030 at its upcoming analyst day.
7. Duke Energy Corporation (NYSE:DUK)
Number of Billionaire Investors: 14
Number of Hedge Fund Holders: 62
Duke Energy Corporation (NYSE:DUK) is an American electric power and natural gas holding company that ranks among the best gas stocks to buy. The company’s natural gas utilities serve more than 1.5 million customers in North Carolina, South Carolina, Tennessee, Ohio, and Kentucky. Duke Energy Corporation’s (NYSE:DUK) electric utilities serve over 8 million customers in North Carolina, South Carolina, Florida, Indiana, Ohio, and Kentucky
On March 20, Morgan Stanley raised its price target on Duke Energy Corporation (NYSE:DUK) from $123 to $128 and maintained an “Equal Weight” rating. The firm is updating its price targets for North American regulated and diversified utilities as well as independent power producers. Morgan Stanley noted that utilities outperformed the S&P 500 in February, which saw a -1.30% return. Key insights from the firm’s annual Energy & Power Conference included continued strong demand from data centers, regulatory uncertainties in power markets, efforts to defend renewables with safe harboring, onshoring equipment, and rising return levels.
6. Occidental Petroleum Corporation (NYSE:OXY)
Number of Billionaire Investors: 14
Number of Hedge Fund Holders: 68
Occidental Petroleum Corporation (NYSE:OXY) is an international energy company that produces oil and gas. The company’s assets are primarily located in the US, the Middle East, and North Africa. It is a leading oil and gas producer in the Permian and DJ basins and offshore Gulf of America. Occidental Petroleum Corporation (NYSE:OXY) ranks among the best gas stocks to buy according to billionaires.
On March 13, JPMorgan reduced the firm’s price target on Occidental Petroleum (NYSE:OXY) from $59 to $52 and maintained a “Neutral” rating. The adjustment followed an updated analysis of exploration and production models and after considering factors like 2025 producer capex budgets, revised winter weather data, and stronger-than-expected liquefied natural gas (LNG) demand-pull. JPMorgan cautioned that a combination of record US oil supply, the return of OPEC+ oil barrels to markets in April 2025, and global trade risks related to tariffs could push oil prices lower and that could potentially force higher-cost producers out of the market.
Interestingly, Occidental Petroleum Corporation (NYSE:OXY) is actively looking to reduce costs and improve efficiency by replacing higher-cost production with more volume of lower-cost reserves. The company has identified scale efficiencies and design improvements that will help save over $1 million per well in its Midland Basin Program through better drilling and completion methods. In 2025, Occidental Petroleum Corporation (NYSE:OXY) expects a 10% faster time to market and a 7% reduction in well costs, which would represent a 15% improvement compared to 2023.
5. Chevron Corporation (NYSE:CVX)
Number of Billionaire Investors: 14
Number of Hedge Fund Holders: 81
Chevron Corporation (NYSE:CVX) is an American multinational energy corporation that produces crude oil and natural gas. The company also manufactures transportation fuels, lubricants, petrochemicals, and additives. Chevron Corporation (NYSE:CVX) is investing in new technologies, renewable fuels, hydrogen, and power generation for data centers. CVX ranks among the best gas stocks to invest in.
The company is strategically focused on increasing production efficiency. In 2024, Chevron Corporation (NYSE:CVX) achieved record-breaking production levels as worldwide oil-equivalent production grew 7%, driven by an 18% growth in the Permian Basin. The company has launched significant growth projects and is actively working to increase its exploration acreage position in the Gulf of America, Angola, Brazil, Equatorial Guinea, Uruguay and Namibia. In December 2024, Chevron Corporation (NYSE:CVX) achieved first gas on the Sanha Lean Gas Connection project to successfully secure incremental natural gas supply to the Angola Liquefied Natural Gas facility. In January 2025, Chevron Corporation (NYSE:CVX) started oil production at its Future Growth Project (FGP) located at the Tengiz oil field in Kazakhstan, which is expected to ramp up total output to around 1 million barrels of oil-equivalent per day.
The company also strengthened its portfolio and closed asset sales in Canada, the Republic of Congo, and Alaska. Chevron Corporation (NYSE:CVX) aims to achieve $2-3 billion in cost reductions by 2026. Notably, the company returned over $15 billion to shareholders through share buybacks in 2024.
4. Targa Resources Corp. (NYSE:TRGP)
Number of Billionaire Investors: 16
Number of Hedge Fund Holders: 61
Targa Resources Corp. (NYSE:TRGP) is an American midstream energy infrastructure corporation that ranks among the best gas stocks to buy. As one of the largest integrated infrastructure companies, it delivers natural gas and natural gas liquids (NGLs) to key domestic and international demand markets. Targa Resources Corp. (NYSE:TRGP) has the leading gathering and processing position in the Permian Basin with significant access to NGL supply. The company’s gathering and processing assets also span other major shale and natural resource plays, like Bakken Shale, Barnett Shale, Eagle Ford Shale, Anadarko Basin, Ardmore Basin, Arkoma Basin, and onshore Louisiana.
The company is actively working on growth projects to expand its infrastructure and meet market demands. In its Gathering and Processing (G&P) segment, Targa Resources Corp. (NYSE:TRGP) is constructing several natural gas processing plants, including the Pembrook II, East Pembrook, and East Driver plants in the Permian Midland, as well as the Bull Moose II and Falcon II plants in the Permian Delaware. Additionally, Targa is building a 150 MBbl/d Train 11 fractionator in Mont Belvieu. These projects are progressing well and are on track for completion as planned.
In February 2025, Targa Resources Corp. (NYSE:TRGP) announced new initiatives to address the increasing production and infrastructure needs of its customers. These include the Delaware Express pipeline expansion, a 100-mile project in Permian Delaware, and an expansion of its LPG export capabilities at Galena Park Marine Terminal to handle 19 MMBbl per month. Another initiative is the Train 12, a new 150 MBbl/d fractionator in Mont Belvieu. Targa Resources Corp. (NYSE:TRGP) expects that these projects will start operations between 2026 and 2027.
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.
2. Exxon Mobil Corporation (NYSE:XOM)
Number of Billionaire Investors: 16
Number of Hedge Fund Holders: 104
Exxon Mobil Corporation (NYSE:XOM) is an American multinational oil and gas corporation. The company’s primary businesses include Upstream, Energy Products, Chemical Products, and Specialty Products. It is one of the world’s largest fuels, lubricants, and chemical companies. Exxon Mobil Corporation (NYSE:XOM) ranks among the best gas stocks to buy according to billionaires.
On February 4, DBS analyst Suvro Sarkar maintained a “Buy” rating for Exxon Mobil Corporation (NYSE:XOM) with a price target of $133. Sarkar’s recommendation is based on the company’s strong financial performance and strategic initiatives. Exxon Mobil Corporation’s (NYSE:XOM) Q4 2024 earnings exceeded expectations despite challenges in the refining segment. The company also announced substantial share buybacks and a dividend increase. The analyst highlighted Exxon Mobil Corporation’s (NYSE:XOM) growth potential with key projects set to start in 2025 that are expected to boost earnings by 2026. The acquisition of Pioneer Natural Resources has strengthened the company’s position in the Permian Basin while also enhancing production capabilities.
1. Hess Corporation (NYSE:HES)
Number of Billionaire Investors: 18
Number of Hedge Fund Holders: 92
Hess Corporation (NYSE:HES) is an American multinational independent energy company that focuses on exploring and producing crude oil and natural gas. The company has a key position in the Bakken in North Dakota and it is also one of the largest producers in the deepwater Gulf of America. It engages in exploration and development activities offshore Guyana. Hess Corporation (NYSE:HES) is a major natural gas producer and supplier to Peninsular Malaysia and Thailand. HES is one of the best gas stocks to buy according to billionaires.
On February 10, Raymond James maintained a “Market Perform” rating on Hess Corporation (NYSE:HES) after the company surpassed expectations in its Q4 2024 earnings. The company reported earnings per share (EPS) of $1.76, surpassing the street’s forecast of $1.53, and cash flow per share (CFPS) of $4.93 to beat the $4.29 estimate by approximately 15%. This performance was driven by higher-than-expected total production and oil and natural gas realizations. Hess Corporation (NYSE:HES) reported a total production output of 495 thousand barrels of oil equivalent per day (mboe/d) for the quarter, compared to the projected 481 mboe/d. The company’s operating costs were 7% below Raymond James’s estimates. Despite these results, Raymond James slightly reduced its Q1 2025 production forecast to 469 mboe/d considering winter weather impacts in the Bakken region and maintenance at the Payara development in Guyana. Additionally, considering Hess Corporation’s (NYSE:HES) ongoing expansion efforts in Guyana’s Stabroek Block, Raymond James adjusted its 2025 capital expenditure forecast to align with the guidance midpoint of approximately $4.5 billion, but slightly below the street’s $4.6 billion projection.
Overall, HES ranks first among the 10 best gas stocks to buy according to billionaires. While we acknowledge the potential of gas companies, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. 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 the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
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