10 Best Undervalued Energy Stocks To Buy According to Hedge Funds

3. ConocoPhillips (NYSE:COP)

Number of Hedge Fund Investors: 66

Forward P/E Ratio as of December 16: 10.99

ConocoPhillips (NYSE:COP) is a global independent oil and natural gas exploration and production company. The company operates in prolific basins, including the Permian, Bakken, and Eagle Ford in the U.S., as well as in international markets. ConocoPhillips (NYSE:COP) earns revenue by selling its hydrocarbons to global markets.

ConocoPhillips (NYSE:COP) is expanding its presence in the liquefied natural gas (LNG) market to capitalize on growing global demand. The company has made significant investments in LNG projects, including the APLNG and Port Arthur LNG facilities, and is actively working to secure long-term supply contracts in key markets such as Europe and Asia. In Q3, ConocoPhillips (NYSE:COP) executed three new agreements in Europe, representing about 1.8 million tons per annum (MTPA) of capacity, which will enable the company to place volumes more efficiently into multiple European markets. ConocoPhillips (NYSE:COP) remains bullish on long-term demand growth and is positioning itself to capture value from premium gas markets.

ConocoPhillips (NYSE:COP) is maintaining a disciplined approach to capital spending, with a focus on projects that offer strong returns and competitive cost structures. For 2025, the company expects to grow production at a low-single-digit rate with a pro-forma capital expenditure (CapEx) of less than $13 billion. Key projects include the Willow development in Alaska, the Port Arthur LNG project, and the Callaway expansion. These projects are expected to contribute to the company’s production growth and enhance its position in premium markets. Additionally, the company is actively managing its portfolio through asset dispositions, targeting $2 billion in non-core asset sales over the next several years to further optimize its asset base and redeploy capital to higher-return opportunities.