In this article, we are going to discuss the 10 best oil stocks to invest in according to billionaires.
After an encouraging start to the year, the energy sector is once again lagging behind the overall market. At the time of writing this piece, the broader energy sector has slid by almost 8.2% since the beginning of 2025, against declines of around 7.9% by the wider market. The principal reason behind this fall is the decline in the global prices of oil, which have plunged by almost 14.5% since the beginning of the year.
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The continued uncertainty surrounding the ongoing tariff war and the recent decision by OPEC+ to increase supply in May have taken a toll on the global price, with the West Texas Intermediate (WTI) crude price now hovering around a 3-year low of $61.5. The US Energy Information Administration (EIA) has forecasted WTI price to average $63.88 per barrel for 2025 before dropping to an average of $57.48 next year. Such a sharp decline in prices could threaten US oil production growth this year. According to data from the Federal Reserve Bank of Dallas, the US oil industry needs prices between $61 and $70 per barrel to be profitable.
The escalating trade tensions between the US and China have also raised the prospect of a global economic slowdown, potentially leading to a lower-than-forecasted consumption of oil. In its latest report, the EIA now expects global oil consumption to increase by 900,000 b/d in 2025 and 1 million b/d in 2026, down by 400,000 b/d and 100,000 b/d, respectively, from its initial forecast last month. The decrease in demand, coupled with increasing production, will continue putting pressure on crude prices, forcing many industry players to cut back activity to maintain investor payouts.
The American oil and gas sector is also frustrated by the back and forth trade policies of President Trump and is questioning how they align with his ‘drill, baby, drill’ mandate to further boost production. According to a survey by the Federal Reserve Bank of Dallas, nearly a third of oil executives have stated that their business outlook has worsened since the end of 2024. Moreover, the imposition of the 25% tariff on steel and aluminum has already led to an estimated 4% increase in costs for drilling a well.
The pressing issues surrounding the global oil trade have forced the industry to shift focus to its second major source of revenue – natural gas. In contrast to oil, the benchmark US natural gas price at Henry Hub has surged by more than 123% since last year and by almost 18% since the beginning of 2025. The uptick comes as a result of slowing output in 2024, booming LNG exports, and fast-depleting inventories during the coldest winter in six years. Moreover, natural gas has emerged as a leading candidate to power the ongoing AI boom and its accompanying data centers, with many providers now even aiming to surpass utilities and supply directly to these power-hungry facilities.
Also, despite the broad concerns, many billionaires continue to invest and remain bullish on the oil sector. A great example is how Warren Buffett’s Berkshire Hathaway maintains significant holdings in multiple oil majors and even recently invested hundreds of millions of dollars in an oil and gas giant over the last few months.
With that said, here are the Best Oil Stocks to Buy Now According to Billionaires.
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Our Methodology
To collect data for this article, we scanned Insider Monkey’s database of billionaires’ stock holdings and picked the top 10 companies operating in the oil sector with the highest number of billionaire investors in the Insider Monkey database in Q4 of 2024. When two or more companies had the same number of billionaires backing them, we ranked them by the revenue of their last financial year. Following are the Best Oil Stocks According to Billionaires.
At Insider Monkey, we are obsessed with 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. EOG Resources, Inc. (NYSE:EOG)
Number of Billionaire Holders: 13
EOG Resources, Inc. (NYSE:EOG) is one of the largest crude oil and natural gas exploration and production companies in the United States, with proved reserves in the US and Trinidad.
EOG Resources, Inc. (NYSE:EOG) reported mixed results in Q4 2024 as its revenue of $5.6 billion was down 12.14% YoY and missed expectations by $360 million. However, the company’s adjusted EPS of $2.74 managed to top estimates by $0.17. EOG invested $6.2 billion in CapEx in 2024, driving an annual production growth of 3% in oil and 8% in total company volume. Despite a tough market, the oil and gas producer intends to spend $6.2 billion again in 2025 to grow oil production by another 3% and total production by 6% in 2025. The growth this year is more heavily oil-weighted due to the company’s well mix in the Delaware Basin.
EOG Resources, Inc. (NYSE:EOG) maintains a robust balance sheet and ended 2024 with $7.1 billion in cash, including approximately $700 million of estimated tax payments postponed to 2025 under IRS storm-related tax relief. The company returned a record $5.3 billion to shareholders in 2024, representing 98% of its free cash flow and well in excess of its commitment to return a minimum of 70% of annual free cash flow to shareholders. EOG has never reduced or suspended its regular dividend in the last 27 years and has grown its dividend rate twice as fast as its peers’ average since 2019. The company currently boasts an annual dividend yield of 3.59%.
9. Cenovus Energy Inc. (NYSE:CVE)
Number of Billionaire Holders: 13
Cenovus Energy Inc. (NYSE:CVE) is an integrated oil and natural gas company, based in Calgary, Alberta, with operations that span Canada, the United States, and the Asia Pacific region.
Cenovus Energy Inc. (NYSE:CVE) had a tough Q4 2024 as its EPS of $0.19 narrowly fell below expectations by $0.01. The company’s revenue of just over $9 billion was also down 7.29% YoY and missed estimates by $1.11 billion. This was despite CVE reaching a quarterly record for oil sands production, at 628,500 barrels of oil equivalent per day (boepd). The higher production was offset by lower commodity prices and weak refining margins.
Cenovus Energy generated around $5.6 billion of adjusted funds flow in FY 2024 and returned about $2.24 billion to shareholders through dividends, share repurchases, and the redemption of preferred shares. The oil and gas producer announced a quarterly dividend of $0.13 per share in February, putting it among the 12 Best Oil and Gas Dividend Stocks According to Billionaires.
Cenovus Energy Inc. (NYSE:CVE) is expecting a total crude throughput of 650,000 to 685,000 barrels per day this year, representing a 3% increase from 2024 levels. However, things remain unclear after the imposition of President Trump’s tariffs on Canada.
L1 Capital stated the following about Cenovus Energy Inc. (NYSE:CVE) in its Q3 2024 investor letter:
“Cenovus Energy Inc. (NYSE:CVE) (Long -15%) and MEG Energy (Long -13%) shares fell as the WTI oil price decreased 17% to ~US$69/bbl on the back of increased concerns around a potential increase in OPEC supply along with slower global economic growth. Despite OPEC delaying a previously planned increase in oil output, the oil price continued to weaken due to the weaker demand outlook. During the quarter, we attended the Peters & Co oil and gas conference in Toronto, meeting one-on-one with management from Cenovus and MEG Energy, along with the entire peer group. We continue to favor Cenovus and MEG in the sector due to their strong cash flow generation, the long-life nature of their oil sands assets, low cost of production and strong balance sheets. Both Cenovus and MEG have now transitioned to returning 100% of free cash flow back to shareholders, having reached their respective net debt targets. As a result, we see both names offering sector leading shareholder returns, combined with some modest, accretive output growth.”
8. Marathon Petroleum Corporation (NYSE:MPC)
Number of Billionaire Holders: 13
Coming in at number 8 on our list of Best Oil Stocks to Invest in is Marathon Petroleum Corporation (NYSE:MPC), a leading integrated downstream energy company that operates the largest refining system in the US, with approximately 3 million barrels per day of crude oil capacity across 13 refineries.
Marathon Petroleum Corporation (NYSE:MPC) had a strong Q4 2024, as its adjusted EPS of $0.77 surpassed expectations by a significant $0.75. The company’s revenue of $33.47 billion also beat estimates by over $1.5 billion. Due to the ongoing issues faced by the oil refining industry, Marathon’s refining margin declined by 27% YoY in Q4, causing its refining profit to slump to $559 million, down 75% from $2.25 billion a year ago.
That said, Marathon Petroleum Corporation (NYSE:MPC) generated net cash from operations of $8.7 billion in 2024, which enabled peer-leading capital return to shareholders of $10.2 billion. As of the end of 2024, the company still had $7.8 billion available under its share repurchase authorizations.
Marathon Petroleum Corporation (NYSE:MPC)’s strategic shift toward renewable fuels also indicates a significant step toward future growth. The company established a Renewable Diesel segment in Q4 2024 and recently disclosed that it is progressing the distillate hydrotreater project at Galveston Bay, which will upgrade high-sulfur distillate to ultra-low sulfur diesel, allowing the company to place product in this higher-value market. The project is expected to be completed by the end of 2027 and generate a return of over 20%.
7. Occidental Petroleum Corporation (NYSE:OXY)
Number of Billionaire Holders: 14
Occidental Petroleum Corporation (NYSE:OXY) is one of the largest oil and gas producers in the United States, including a leading producer in the Permian and DJ basins and offshore Gulf of Mexico.
Occidental Petroleum Corporation (NYSE:OXY) had a mixed Q4 2024 as its adjusted EPS of $0.8 beat expectations by $0.13. However, the company’s revenue of $6.84 billion was down by almost 9.2% and fell below estimates by $299.41 million. Notably, OXY’s global production during the quarter came in at 1.46 million boed, outperforming its midpoint of guidance by 13,000 boed and setting a record for the company’s highest-ever US quarterly production.
The oil and gas producer generated $4.9 billion of free cash flow in 2024, enabling it to achieve its near-term debt repayment target of $4.5 billion seven months ahead of schedule. The company also paid approximately $800 million of common dividends during the year and raised its quarterly dividend by 9.1% last month.
Occidental Petroleum Corporation (NYSE:OXY) revealed earlier this month that the prices it received for oil and gas production in Q1 2025 were higher than in the preceding three months. The company’s average realized price for oil output was $71.07 per barrel in Q1, up 1.9% from the previous quarter. More notably, the average realized price for total natural gas production also increased to $2.30 per mcf from $1.26 per mcf during the quarter that ended December 31.
6. Canadian Natural Resources Limited (NYSE:CNQ)
Number of Billionaire Holders: 14
Canadian Natural Resources Limited (NYSE:CNQ) is one of the largest independent crude oil and natural gas producers in the world, continuing operations in its core areas, which are located in Western Canada, the UK portion of the North Sea, and Offshore Africa. The company boasts total proved reserves of 15.2 billion BOE and total proved plus probable reserves of 20.1 billion BOE as of year end 2024, both of which increased 9% from year end 2023 levels.
Canadian Natural Resources Limited (NYSE:CNQ) missed earnings expectations in Q4 2024 as its EPS of $0.66 fell below estimates of $0.69. That said, the company achieved record annual average production of over 1.36 million boed in 2024, which includes record annual liquid production of over one million barrels per day. Over the last three years, CNQ has delivered annual production per share CAGR of 7% and improved liquids margins significantly by reducing operating costs by around 15%.
Canadian Natural Resources Limited (NYSE:CNQ) remains committed to its shareholders and has increased its dividend for 25 consecutive years, with a CAGR of 21% over that time. The company returned approximately $7.1 billion to shareholders in 2024, including dividends and share repurchases, and approved a 4.4% increase in its quarterly dividend last month.
5. Valero Energy Corporation (NYSE:VLO)
Number of Billionaire Holders: 14
Next on our list of the Best Oil Stocks According to Billionaires is Valero Energy Corporation (NYSE:VLO), the largest independent petroleum refiner in the world that boasts 15 refineries in the US, Canada, and the UK, and a total throughput capacity of approximately 3.2 million barrels per day.
Valero Energy Corporation (NYSE:VLO) had a strong Q4 2024, as its adjusted EPS of $0.64 was significantly above expectations by $0.58. The company’s revenue of $30.76 billion also topped estimates by $733.14 million, despite being down 13.15% YoY. Refining, Valero’s largest segment, witnessed a significant decline in operating income, reporting $437 million in Q4 2024 against $1.6 billion the previous year. However, the renewable diesel segment stood out, with its operating income rising to $170 million, up 102% YoY, partly due to amplified sales volumes and better margins. Despite the issues, VLO returned $4.3 billion to stockholders in 2024 and increased its quarterly cash dividend by 5.6% in January, underlining its commitment to return value to shareholders.
Valero Energy Corporation (NYSE:VLO) expects capital investments of approximately $2 billion in 2025, with a focus on growth and sustainability. The company completed a strategic project to boost renewable energy production in Q4 2024, enhancing its Diamond Green Diesel joint venture. VLO expects the sales volumes of its Renewable Diesel segment to be approximately 1.2 billion gallons in 2025.
4. Chevron Corporation (NYSE:CVX)
Number of Billionaire Holders: 14
Chevron Corporation (NYSE:CVX) manufactures and sells a range of high-quality refined products, including gasoline, diesel, marine and aviation fuels, premium base oil, finished lubricants, and fuel oil additives. The oil and gas giant owns five US fuel refineries and boasts a network of Chevron and Texaco service stations.
Chevron Corporation (NYSE:CVX) narrowly missed earnings expectations in Q4 2024 as weak margins dragged its refining business into a loss for the first time in the last four years. However, the company increased its revenue by 10.7% YoY to $52.23 billion during the quarter, topping estimates as it increased its worldwide and US production by 7% and 19%, respectively, to record levels in 2024. CVX also maintains a robust balance sheet and generated $31.5 billion in operating cash flow and $15 billion in free cash flow in FY 2024, ending the year with a net debt ratio of 10%. The industry giant expects to maintain this momentum, expecting to add $10 billion of annual free cash flow in 2026 (assuming $70 oil) and around $9 billion at the current Brent price.
Chevron Corporation (NYSE:CVX) is known for its commitment to shareholders, and the company returned a record $27 billion to its shareholders in 2024 in the form of dividends and share repurchases. The company has returned over $75 billion to shareholders over the last three years and recently increased its quarterly dividend by 4.9% to $1.71 per share, maintaining a 38-year streak of consistent dividend growth.
As a result, Chevron Corporation (NYSE:CVX) was also included in our list of the 25 Best Dividend Stocks to Buy According to Billionaires.
3. Shell plc (NYSE:SHEL)
Number of Billionaire Holders: 14
Shell plc (NYSE:SHEL) is a global group of energy and petrochemical companies, employing 103,000 people and with operations in more than 70 countries. The company is also the number one global lubricant supplier, as well as the top player in the rapidly expanding LNG sector.
Shell plc (NYSE:SHEL) had a tough Q4 2024, as its adjusted EPS of $1.18 fell below expectations by $0.31. The company’s revenue of $66.28 billion also missed estimates by over $5.5 billion. However, despite the company reporting the lowest quarterly profit in the last 3 years, cash delivery remained solid, and it generated a free cash flow of $40 billion across the year 2024, higher than 2023, in a lower price environment. The oil and gas giant distributed $22.6 billion to its shareholders during the year, representing 41% of its total free cash flow. Earlier this year, Shell announced a 4% increase in its quarterly dividend and another $3.5 billion buyback programme, making this the 13th consecutive quarter of at least $3 billion of buybacks.
Shell plc (NYSE:SHEL) recently lowered its Q1 2025 LNG production outlook last week, citing the impact of bad weather in Australia. The company has also decreased its upstream oil and gas production forecast to between 1.79 million and 1.89 million boed in the first quarter, down from a previous projection of 1.75 million to 1.95 million boed.
2. ConocoPhillips (NYSE:COP)
Number of Billionaire Holders: 16
ConocoPhillips (NYSE:COP) is one of the world’s largest independent E&P companies based on oil and natural gas production and proved reserves. COP is the largest independent exploration and production company in the world, based on proved reserves and production of liquids and natural gas.
ConocoPhillips (NYSE:COP) beat forecasts in Q4 2024 as its adjusted EPS of $1.98 topped estimates by $0.15. The company’s revenue of $14.74 billion was also above estimates by almost $515 million. COP has transformed itself over the years to become a low-cost oil producer, especially after the $22.5 billion acquisition of Marathon Oil last year. The deal added over 2 billion barrels of oil and gas resources with an average cost of supply below $30. As a result, the company’s production rose 14.8% YoY to 2.183 million boed in Q4 2024.
ConocoPhillips (NYSE:COP) remains cash-rich and generated $20.3 billion in operational cash flow in 2024, of which it returned $9.1 billion to its shareholders in the form of buybacks and dividends. The company boosted its dividend by 34% late last year and also announced plans to return $10 billion to its shareholders in 2025.
1. Exxon Mobil Corporation (NYSE:XOM)
Number of Billionaire Holders: 16
Topping our list of the Best Oil Stocks According to Billionaires is Exxon Mobil Corporation (NYSE:XOM), one of the largest integrated fuels, lubricants, and chemical companies in the world. The company operates facilities or markets products around the globe and explores for oil and natural gas on six continents.
After the $60 billion acquisition of Pioneer Natural Resources last year, Exxon Mobil Corporation (NYSE:XOM)’s production in the Permian Basin and Guyana hit a record high in 2024. The oil major delivered an industry-leading financial performance last year, with $34 billion in earnings and $55 billion in cash flow from operations, its third-highest result in a decade despite softer market conditions. The company’s total production came in at 4.3 million boed in 2024, with a target to achieve close to 5.4 million boed in 2030.
Exxon Mobil Corporation (NYSE:XOM) has grown its earnings at an annual rate of roughly 30% over the last five years, while its cash flow has increased at a CAGR of about 15%. The company intends to continue this momentum and expects to add a further $20 billion in earnings and $30 billion in cash flow by the end of the decade. Exxon remains committed to its shareholders, having grown its annual dividend for 42 consecutive years. The company announced a quarterly dividend of $0.99 per share for Q1 of 2025 and also revealed plans to repurchase $20 billion in shares annually through 2026.
Overall, Exxon Mobil Corporation (NYSE:XOM) ranks first on our list of the best oil stocks to invest in according to billionaires. While we acknowledge the potential of 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 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 XOM but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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