In this article, we will discuss: 10 Best Geothermal Stocks to Buy According to Hedge Funds.
Geothermal stocks are companies that use heat from the earth to generate electricity, heating, and cooling. This comprises companies in geothermal energy production, exploration, and technology development.
The geothermal market is growing rapidly. On April 2, 2025, Dandelion Energy, a prominent private company specializing in home geothermal heating and cooling, announced a partnership with one of the nation’s largest homebuilders to integrate geothermal systems into over 1,500 new homes in Colorado over the following two years. The program’s goal, which is among the biggest residential geothermal deployments in American history, is to standardize geothermal heating and cooling in new construction. When compared to air-source heat pumps, homeowners may anticipate saving almost $30 million over the next 20 years due to lower energy expenditures and better efficiency. According to a recent Department of Energy report, the widespread use of geothermal heat pumps could reduce the need for 24,500 miles of additional grid transmission lines, which is comparable to crossing the United States eight times. Overall, the collaboration highlights a growing trend toward sustainable homebuilding and lower carbon footprints in residential buildings.
Governor of Colorado Jared Polis stated:
“Geothermal energy – the heat beneath our feet – is a clean energy option that will help save Coloradans money and protect our state for future generations. I’m very excited that Dandelion is building on Colorado’s leadership on geothermal by connecting more than 1,500 Colorado homes to low-cost heating and cooling. It’s good for Coloradans, for our air quality, and our economy,”
As we look forward, according to the International Energy Agency’s report, geothermal energy, which now meets less than 1% of worldwide demand, is anticipated to supply up to 15% of global power by 2050, with an anticipated capacity of 800 GW and approximately 6,000 TWh per year. Advancements in drilling technology, comprising hydraulic fracturing and horizontal drilling, might unlock geothermal resources at depths greater than 3 km, hence extending the global potential. In 2023, more than 75% of global geothermal capacity was utilized, greatly outperforming wind (30%) and solar (15%) in terms of capacity factor. Investment in geothermal energy could surpass $1 trillion by 2035 due to decreased costs and oil and gas sector expertise. Government support may reduce prices by 80% by 2035, putting geothermal on equal ground with solar and wind. There are still major obstacles to overcome, such as the lack of qualified workers, environmental effects, and delays in obtaining permits. The success of geothermal energy depends on governments streamlining procedures, offering incentives, and encouraging research to fulfill the world’s expanding demand for electricity.
As per Deloitte’s report, rapidly maturing Enhanced geothermal systems (EGS) capable of providing 24/7 baseload electricity by accessing deep heat reservoirs are benefiting from federal funding and cross-sector investment in technological advances such as new drilling techniques and extreme heat operations, as well as bipartisan support to accelerate projects. Technology companies are collaborating with developers to produce geothermal electricity, as well as with utilities to facilitate EGS deployments by offering a clean transition tariff to cover the costs and risks of implementing a new technology. Meanwhile, a utility inked the largest geothermal power purchase agreement, reaching 320 MW, to meet a public utility commission’s need to obtain carbon-free power 24 hours a day, seven days a week.
With that said, here are the 10 Best Geothermal Stocks to Buy According to Hedge Funds.
A drilling rig in the desert with an orange sunset in the background.
Our Methodology
We sifted through online rankings to form an initial list of 10 Geothermal stocks. From the resultant dataset, we chose the top 9 stocks most favored by hedge funds, using Insider Monkey’s database of 1,009 hedge funds in Q4 2024 to gauge hedge fund sentiment for stocks. We have also included a pure-play private geothermal company and ranked it 10th on our list.
Why are we interested in the stocks that hedge funds pile into? 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. Calpine Corporation
Calpine Corporation, located in Houston, Texas, is a prominent player in the geothermal energy as well as the US natural gas industry. Its operational portfolio of 79 energy facilities totals more than 27,000 megawatts of generation capacity. Through wholesale power operations and its retail businesses, the company serves customers in 22 states and Canada.
Calpine maintains The Geysers, the world’s largest complex of geothermal energy facilities. About half of California’s in-state geothermal power comes from dry or superheated steam at The Geysers. The Geysers have the current capacity to generate 725 megawatts of electricity around the clock, which is enough to power 725,000 homes. It utilizes about 13 million gallons of reclaimed city water each day, reducing the need to release this water into local waterways, resulting in another distinctive environmental win.
On January 10, 2025, Constellation Energy Corporation and Calpine announced the final agreement to acquire Calpine for a total of around $16.4 billion. The transaction includes 50 million Constellation shares, $4.5 billion in cash, and the assumption of approximately $12.7 billion in the company’s net debt. After taking into account the cash that the business is anticipated to bring in between signing and the estimated close date, as well as the value of Calpine’s tax attributes, the net purchase price is $26.6 billion, representing an appealing acquisition multiple of 7.9x 2026 EV/EBITDA.
9. Ormat Technologies, Inc. (NYSE:ORA)
Number of Hedge Fund Investors: 28
One of the Best Geothermal Stocks, Ormat Technologies, Inc. (NYSE:ORA) operates in the geothermal and recovered energy power markets. It excercises three business segments. The Electricity Segment is where the firm develops, builds, owns, and operates geothermal, solar PV, and recovered energy-based power facilities in the United States, as well as geothermal power plants in other countries, and sells the electricity they create. The product segment involves developing, manufacturing, and selling geothermal and recovered energy-based electricity production equipment, along with offering engineering, procurement, and construction services for geothermal and recovered energy-based power plants. The Energy Storage Segment comprises owning and operating grid-connected assets that supply capacity, energy, and ancillary services directly to the electric grid.
Ormat Technologies, Inc. (NYSE:ORA)’s financial performance in 2024 was solid, with a 6.1% jump in revenue and 14.3% growth in adjusted EBITDA, primarily due to improvements across all business segments. The acquisition of Enel assets raised revenue and EBITDA, whereas new PPA agreements for the Boyan, Hebe 1, and Mammoth 2 power facilities showed substantial demand for geothermal energy. The Product segment backlog surpassed $340 million, boosted by significant deals in New Zealand and Dominica. The firm also extended its energy storage division by bringing three new facilities online, including its largest project, Bozident, resulting in 56.7% revenue growth in the fourth quarter of 2024 and a 30.6% increase for the year.
In 2024, Ormat Technologies, Inc. (NYSE:ORA) purchased 1,678 acres of land in Utah in a Bureau of Land Management auction. The new site will allow the company to develop two more geothermal power units at its Cove Fort facility. The first plant’s (Cove Fort 2) exploration will begin this year, with commercial operations expected to begin in 2027. The second facility, named Cove Fort North, will be built later.
8. Weatherford (NASDAQ:WFRD)
Number of Hedge Fund Investors: 36
Weatherford (NASDAQ:WFRD) offers a wide range of oilfield services in international markets for various types of oilfields. The company is the global market leader for artificial lift and tubular running services. Other important product lines include cementing materials, directional drilling, and wireline evaluation. It is one of the bigger oilfield services companies in an otherwise highly fragmented market.
Weatherford (NASDAQ:WFRD) is among the Best Geothermal Stocks. It specializes in geothermal energy, using advanced liner systems built for harsh wellbore conditions. Its Drilling-with-Liner technology simplifies operations by integrating drilling and casing, saving time and money. This method also improves wellbore stability, which is essential for high-temperature, high-pressure geothermal conditions.
In the fiscal year 2024, the company’s adjusted EBITDA margins exceeded 25%, the best full-year margin in more than 15 years. Weatherford (NASDAQ:WFRD) generated $524 million in adjusted free cash flow, showing a high cash generation ability. In 2024, the company’s international business expanded substantially in the Middle East, North Africa, and Asia areas, growing by 10% on a full-year basis. Its Well Services product line has increased by more than 50% over the last three years, proving a significant growth vector with low capital expenditure.
The firm declared two quarterly dividends of $0.25 per share and repurchased roughly $99 million of shares in the second half of 2024.
Rewey Asset Management stated the following regarding Weatherford International plc (NASDAQ:WFRD) in its Q4 2024 investor letter:
“We added shares of Weatherford International plc (NASDAQ:WFRD) in the quarter, a $5.2 billion market cap global provider of oil field services and equipment. We see significant neglect and undervaluation in shares of WFRD, a position that shows a 59.2% upside to our AFV price target of $114 per share, a level that would still be 15.6% below its July 16th, 2024 high of $135.
Weatherford sold off in concert with the broader energy group in 4Q24, as investors fretted about the risks of slowing global oilfield spending in 2025, the potential for more drilling to push down oil prices under a Trump administration andtax loss selling by investors who purchased shares near summer highs. In our view, the current valuation level ignores the significant financial and operational improvement completed since its 2019 restructuring and the strong long-term revenue growth prospects for its globally diversified and technologically leading offerings…” (Click here to read the full text)
7. Eversource Energy (NYSE:ES)
Number of Hedge Fund Investors: 39
Eversource Energy (NYSE:ES) is ranked seventh on our list of the Best Geothermal Stocks. It is a diverse holding company with subsidiaries that provide rate-regulated electric and gas distribution services to over 4 million customers in the Northeast. The business intends to sell its water utility, Aquarion, in 2025. The company grew its service territories by acquiring NStar (2012), Aquarion (2017), and Columbia Gas (2020). Its 50% collaboration with European utility Orsted to develop 2 gigawatts of offshore wind projects in the Northeast US ended in 2024. In 2006, the firm exited the majority of its unregulated businesses.
Eversource Energy (NYSE:ES) is committed to promoting green energy initiatives and is now investing in wind and geothermal projects as part of its shift to more sustainable energy sources. The business kicked off a geothermal project near Framingham, Massachusetts, on June 4, 2024. This is the company’s first utility-scale geothermal network in the United States. Over the following two years, the project will determine whether this geothermal system is a more cost-effective and efficient alternative to standard heating fuels like oil and natural gas.
Eversource Energy (NYSE:ES) reported $2.97 billion in revenue in the fourth quarter of 2024, up 10.2% from the same time the previous year. The transmission segment generated $724.6 million in 2024, compared to $643.4 million in 2023. Its operating income and interest costs for the quarter totaled $347.8 million and $288.7 million, respectively. The firm increased its dividend by 5% to $3.01 per share yearly for 2025, continuing a long trend of strong hikes in dividends.
6. Halliburton Company (NYSE:HAL)
Number of Hedge Fund Investors: 49
Halliburton Company (NYSE:HAL) is the largest oilfield service company in North America, based on market share, and one of the Best Geothermal Stocks. Despite industry fragmentation, it has a dominant position in the hydraulic fracturing and completions business, accounting for over half of its revenue. It also has significant positions in other service offerings, such as drilling and completion fluids, which benefit from its expertise in material science and the directional drilling industry.
Halliburton Company (NYSE:HAL) also offers fully integrated geothermal solutions, including products, technology, and services. The company operates all sorts of geothermal systems by providing solutions for underground analysis, well construction and completion, and energy production management. The firm introduced GeoESP lifting pumps in 2024, strengthening fluid transport in geothermal wells with low power consumption and strong temperature resistance. It also provides liner hanger systems that can withstand temperatures of up to 650°F (343°C), as well as expandable, mechanical, and drop-off solutions for optimal stability and efficiency. These technologies improve operations and reduce costs in geothermal development.
In 2024, Halliburton Company (NYSE:HAL) reported $3.9 billion in cash from operations and $2.6 billion in free cash flow, with shareholders receiving 60% of free cash flow through $1 billion in stock repurchases and $600 million in dividends. The business anticipates growth in drilling technology, unconventionals, well intervention, and artificial lift, resulting in an additional $2.5 billion to $3 billion in yearly revenue over the next three to five years.
5. Baker Hughes Company (NASDAQ:BKR)
Number of Hedge Fund Investors: 58
Baker Hughes Company (NASDAQ:BKR) was founded in 2017 by combining GE’s oil and gas sector with the legacy of Baker Hughes. While the merger was costly, it resulted in a global equipment and service powerhouse that provided numerous solutions across the energy sector and adjacent markets. It is a global leader in oilfield services and equipment, with customers in more than 120 countries. The company has been increasing its focus on renewable energy technologies, particularly geothermal energy, through the use of modern geothermal drilling methods.
Baker Hughes (NASDAQ:BKR) uses Advanced Geothermal Systems from GreenFire Energy to convert oil and gas wells into geothermal power, making it among the Best Geothermal Stocks. Its closed-loop technology revitalizes depleted fields, making previously unprofitable operations viable. In March, the firm collaborated with Earths Energy to build geothermal projects in Australia.
Baker Hughes Company (NASDAQ:BKR) recorded solid earnings in the fourth quarter of 2024. The company reported a revenue of $7.4 billion, representing an 8% hike over the same period the previous year. Its Industrial & Energy Technology segment received $3.8 billion in orders during the quarter, fueled by strong LNG demand and an extra gas infrastructure contract. With this strong finish to the year, total orders for 2024 hit $13 billion, making it the company’s second-highest annual order volume in history. This performance shows the company’s diverse end markets and portfolio flexibility.
4. Schlumberger Limited (NYSE:SLB)
Number of Hedge Fund Investors: 80
Schlumberger Limited (NYSE:SLB) is the world’s leading oilfield services firm by market share. While the market is largely fragmented, it is the first or second most competitive player in many of the varied oligopolies it participates. Today, it is best regarded as a worldwide innovation leader, with a strategy focused on three growth engines: core, digital, and new energy companies. Over three-fourths of its revenue comes from international markets, and the business generates approximately $3 billion in digital sales.
Schlumberger (NYSE:SLB) is included in our list as one of the Best Geothermal Stocks because it has substantially invested in geothermal energy through its GeothermEx division. The company is involved in nearly 80% of the world’s geothermal power projects, providing a full spectrum of services from geothermal power generation to geothermal heating and cooling for buildings. GeothermEx’s consulting services include all aspects of geothermal operations, using innovative technology in well building, digital solutions, and field development to ensure long-term energy production. On January 22, 2025, Schlumberger Limited (NYSE:SLB) and Star Energy Geothermal established a technology agreement to promote geothermal development. The collaboration intends to boost recovery rates and save costs for geothermal projects by utilizing the company’s AI-driven, well-controlled, and subsurface characterization capabilities.
Schlumberger Limited (NYSE:SLB) reported an impressive Q4 2024, with an adjusted EPS of $0.92 above estimates by $0.02. The company’s sales of $9.28 billion were up 3.27% YoY and above expectations by about $103 million. The business is also profiting from its global reach, as seen by a 12% international revenue growth during fiscal year 2024. It also conducted accelerated share repurchase activities, repurchasing $2.3 billion of its stock, and increased its quarterly dividend by 3.6% to $0.285 per share. The company intends to repay at least $4 billion to its shareholders by 2025.
3. Chevron Corporation (NYSE:CVX)
Number of Hedge Fund Investors: 81
Chevron Corporation (NYSE:CVX) is a fully integrated energy business with global operations in exploration, production, and refining. It is the second-largest oil business in the United States, producing 3.1 million barrels of oil equivalent per day, which includes 7.7 million cubic feet of natural gas and 1.8 million barrels of liquids per day.
Although Chevron Corporation (NYSE:CVX) is largely an oil and gas firm, it also invests in geothermal energy, ranking it third among the Best Geothermal Stocks. The business has been active in geothermal projects for decades, primarily in Indonesia and the Philippines. The firm is collaborating with Baseload Capital, Mitsui Oil, and Pertamina to develop revolutionary geothermal technologies that will allow it to extract energy from almost anywhere. Its pilot-to-project model seeks to reduce risk, commercialize, and scale geothermal for clean energy and the production of hydrogen. The business pairs modern closed-loop and upgraded geothermal technologies with traditional approaches to offer dependable, low-carbon energy alternatives.
The company recorded strong results in the fourth quarter of 2024, with revenue of $52.23 billion, a 10.7% growth over the same period last year. The revenue also beat Street expectations by more than $3.8 billion. This growth was primarily driven by a 7% surge in global production and a 19% spike in US output, both of which set new records for the year. In addition, Chevron Corporation (NYSE:CVX) generated approximately $8 billion in asset sales while still maintaining a strong financial position, with a net debt ratio of 10% at the end of the year. The firm’s financial position has remained steady over time, which has strengthened its dividend policy. In the fiscal year 2024, it generated $31.5 billion in operating cash flow and $15 billion in free cash flow.
2. Berkshire Hathaway Inc. (NYSE:BRK-B)
Number of Hedge Fund Investors: 131
Warren Buffett leads Berkshire Hathaway Inc. (NYSE:BRK-B), a worldwide conglomerate holding business. The firm owns and invests in a variety of industries, such as insurance, utilities, railroads, and manufacturing. BHE Renewables, the company’s Energy business, owns solar, wind, geothermal, and hydroelectric facilities that generate electricity for the wholesale market and clients under long-term contracts. The stock was up by more than 13% YTD, making it one of the Best Geothermal Stocks.
Berkshire Hathaway Inc. (NYSE:BRK-B) Renewables generates geothermal energy and operates ten sites in California’s Imperial Valley, producing 345 megawatts of electricity. The company’s geothermal brines feature relatively high lithium concentrations, creating a potential revenue possibility. By extracting lithium from these brines, the business can capitalize on the expanding demand for battery-grade lithium, adding a significant revenue stream to its main operations.
Berkshire Hathaway Inc. (NYSE:BRK-B) has increased its geothermal investments, with a particular focus on California and Nevada. In February 2024, it acquired two geothermal units in California, expanding its green energy portfolio.
1. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Investors: 234
The tech giant and the Best Geothermal Stock, Alphabet Inc. (NASDAQ:GOOGL) is expanding its interest in geothermal energy through a partnership with Fervo Energy, a firm that develops advanced geothermal systems. This partnership focuses on implementing artificial intelligence and machine learning to improve the efficiency and responsiveness of geothermal power facilities.
On June 11, 2024, the company teamed up with NV Energy to grow its geothermal power supply for Nevada data centers from 3.5 MW to 115 MW over 6 years, moving closer to its goal of 100% renewable energy by 2030. Alphabet Inc. (NASDAQ:GOOGL) has committed to investing $4 billion in data center expansions in the United States by 2024. The deal, which is part of NV Energy’s Clean Transition Tariff, comprises a power purchase agreement with Fervo Energy, a geothermal producer. Geothermal energy accounts for 10% of Nevada’s electricity, the highest among U.S. states.
Few companies can compete with its profile. In terms of financials, Alphabet Inc. (NASDAQ:GOOGL)’s earnings report for the fourth quarter of 2024 showed a revenue of $96.47 billion, up 11.77% year on year, with EPS of $2.15. Operating income was recorded at $31 billion, with net income at $26.5 billion, up 28% and 31%, respectively. The company’s cash reserves stand at $95 billion. In terms of business model, the company’s portfolio affects nearly every smartphone user on the planet. The investments in artificial intelligence are the game changers.
Overall, GOOGL ranks first among the 10 Best Geothermal Stocks to Buy According to Hedge Funds. While we acknowledge the potential of geothermal companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than GOOGL but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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