On Friday, April 4, oil futures reached multiyear lows following China’s response to the tariffs imposed by the Trump administration. This sparks fear of a fall in demand for oil amid a full-blown trade war. The US benchmark for oil prices, West Texas Intermediate (WTI), fell over 7% to close at $61.99 per barrel and Brent crude futures dropped more than 6% to settle at $65.58. Crude has not traded at these levels since 2021.
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Crude losses worsened as China announced it would impose additional tariffs of 34% on US goods. This announcement came as a response to President Trump’s levies, which include increased duties on China-made imports.
President Trump’s tariffs saw financial markets react strongly and crude oil prices sinking as traders assessed the potential impact of a trade war on demand. Energy-related stocks were set to extend losses after dragging the market down with sell-offs in the Dow, S&P 500, and Nasdaq.
Crude losses also accelerated because of a decision by the Organization of Petroleum Exporting Countries and its allies, OPEC+, to increase supply approximately three times more than expected starting in May.
Angie Gildea, KPMG US energy leader, said that markets are still “digesting tariffs” and that the combination of higher oil supply and concerns about a weaker global economy is putting downward pressure on oil prices. She pointed out that this could lead to a new chapter in a volatile market.
Although energy was not included in the latest tariffs announced by the Trump administration on Wednesday, April 2, the escalation of a global trade war could hurt oil demand.
With this background in mind, let’s take a look at the 11 best American energy stocks to buy now.
A modern skyscraper illuminated in orange and blue, representing the energy sector of the US equity market.
Our Methodology
To compile our list of the 11 best American energy stocks to buy now, we used stock screeners from Finviz and Yahoo Finance to find the largest energy companies. We sorted our results based on market capitalization and picked the top 25 American stocks. Next, we focused on the 11 stocks most favored by institutional investors. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q4 2024 database of more than 1,000 elite hedge funds. Finally, the 11 best American energy stocks to buy now were ranked in ascending order based on the number of hedge funds holding stakes in them as of Q4 2024.
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).
11 Best American Energy Stocks to Buy Now
11. Targa Resources Corp. (NYSE:TRGP)
Number of Hedge Fund Holders: 61
Targa Resources Corp. (NYSE:TRGP) is one of the largest independent energy infrastructure companies in North America. Through its assets, the company delivers natural gas and natural gas liquids (NGLs) to domestic and international markets. Targa Resources Corp. (NYSE:TRGP) ranks among the best American energy stocks to buy now.
The company is making moves to expand its infrastructure and meet growing market demands. In its Gathering and Processing (G&P) segment, Targa Resources Corp. (NYSE:TRGP) is building a number of natural gas processing plants, including the Pembrook II, East Pembrook, and East Driver plants in the Permian Midland. In the Permian Delaware, the company is constructing the Bull Moose II and Falcon II plants. Targa Resources Corp. (NYSE:TRGP) is also building a 150 MBbl/d Train 11 fractionator in Mont Belvieu. In February 2025, the company announced new projects to address the growing production and infrastructure needs of its customers. These include the Delaware Express pipeline expansion project which is expected to commence operations in Q3 2026. Another initiative is the construction of Train 12, a new 150 MBbl/d fractionator in Mont Belvieu, which Targa Resources Corp. (NYSE:TRGP) expects will commence operations in Q1 2027.
10. EOG Resources, Inc. (NYSE:EOG)
Number of Hedge Fund Holders: 62
EOG Resources, Inc. (NYSE:EOG) is an American energy company that focuses on the exploration, development, and production of crude oil and natural gas. The company has proved reserves in the United States and Trinidad. EOG Resources, Inc. (NYSE:EOG) is one of the best American stocks to buy now.
In 2024, the company generated $5.4 billion of free cash flow and returned $5.3 billion to shareholders through a combination of dividends and share repurchases. EOG Resources, Inc. (NYSE:EOG) also managed to reduce average well costs by 6% across its multi-basin operations in 2024. For 2025, the company announced a capital plan with an aim to grow oil production by 3% and total production by 6%. EOG Resources, Inc. (NYSE:EOG) expects total expenditures for the year to range from $6 to $6.4 billion. The capital plan includes drilling and completing 605 net wells across the company’s high-return multi-basin portfolio. Additionally, the company will also be funding strategic infrastructure projects and international opportunities, including exploration projects in Trinidad and Bahrain. EOG Resources, Inc. (NYSE:EOG) entered into a strategic participation agreement with Bapco Energies in Bahrain to evaluate a natural gas exploration prospect with planned drilling activity in 2025.
9. Occidental Petroleum Corporation (NYSE:OXY)
Number of Hedge Fund Holders: 68
Occidental Petroleum Corporation (NYSE:OXY) is an American multinational energy company with assets primarily located in the US, the Middle East, and North Africa. The company is one of the largest oil and gas producers in the US. 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 American stocks to invest in.
On March 13, JPMorgan lowered its price target on Occidental Petroleum (NYSE:OXY) from $59 to $52 while maintaining a “Neutral” rating. This decision came after an updated analysis of exploration and production models and after taking into account factors like 2025 capital expenditure budgets, revised winter weather data, and better-than-expected liquefied natural gas (LNG) demand pull. JPMorgan warned that record US oil supply, the return of OPEC+ oil barrels to markets in April 2025, and global trade risks related to tariffs could lead to a decline in oil prices, which could force higher-cost producers out of the market.
It is worth noting that Occidental Petroleum Corporation (NYSE:OXY) is working to reduce costs and improve efficiency by focusing on replacing higher-cost production with more volume of lower-cost reserves. Occidental Petroleum Corporation (NYSE:OXY) has identified scale efficiencies and design improvements that could help save the company more than $1 million per well in its Midland Basin Program through improved drilling and completion methods. In 2025, the company expects to see a 10% faster time to market and a 7% reduction in well costs. Additionally, by February 18, 2025, Occidental Petroleum Corporation (NYSE:OXY) had already announced $1.2 billion of divestitures in the first quarter of 2025.
8. Cheniere Energy, Inc. (NYSE:LNG)
Number of Hedge Fund Holders: 70
Cheniere Energy, Inc. (NYSE:LNG) is an international energy company that primarily focuses on liquefied natural gas (LNG). The company is the largest producer and exporter of LNG in the US and the second largest producer of LNG in the world. Cheniere Energy, Inc. (NYSE:LNG) ranks among the best American stocks to buy now.
On March 18, UBS analysts reiterated a “Buy” rating on Cheniere Energy, Inc. (NYSE:LNG) with a steady price target of $277. This affirmation came after the company’s announcement of completing the commissioning phase and achieving substantial completion of Train 1 at the Corpus Christi Stage 3 Liquefaction Project, which is now set to contribute to the company’s financial results and also expected to provide an uplift to 2025 guidance. Train 1 began producing LNG in December 2024. The company completed the project within budget and over 6 months ahead of schedule. The expansion of the Corpus Christi liquefaction facility, known as CCL Stage 3, includes 7 midscale trains with an estimated combined production capacity of over 10 million tons per year. Upon the completion of CCL Stage 3, the facility’s total output capacity is expected to surpass 25 million tons per year. During the Q4 2024 earnings call, Cheniere Energy, Inc. (NYSE:LNG) noted that all 7 trains in the CCL Stage 3 expansion are on track to reach substantial completion by the end of 2026. The company is also working on additional growth projects like Midscale Trains 8 and 9 and the Sabine Pass Expansion. Analysts expect these moves will enhance Cheniere Energy, Inc.’s (NYSE:LNG) guidance for 2025 and highlight growth potential.
7. Expand Energy Corporation (NASDAQ:EXE)
Number of Hedge Fund Holders: 71
Expand Energy Corporation (NASDAQ:EXE) was established in 2024 through the merger of Chesapeake Energy Corporation and Southwestern Energy Company. It is currently the largest independent natural gas producer in the US. Headquartered in Oklahoma City, the company has a significant presence in Houston and has operations in Louisiana, Pennsylvania, West Virginia, and Ohio. Expand Energy Corporation (NASDAQ:EXE) is one of the best American stocks to buy in the energy sector.
The company is making moves to increase production and capture synergies. In Q4 2024, Expand Energy Corporation (NASDAQ:EXE) operated an average of 12 rigs to drill 44 wells and brought 41 wells online. This helped the company achieve a daily production of about 6.41 billion cubic feet equivalent (Bcfe). 91% of this was natural gas. In 2025, Expand Energy Corporation (NASDAQ:EXE) aims to run 12 rigs and invest approximately $2.7 billion to increase production to about 7.1 Bcfe/d. The company plans to build incremental productive capacity by allocating an additional $300 million to run 15 rigs in the second half of 2025. Expand Energy Corporation (NASDAQ:EXE) aims to achieve a production rate of approximately 7.2 Bcfe/d by the end of 2025 and further grow to an average of 7.5 Bcfe/d in 2026. Additionally, the company increased its 2025 expected annual synergy target by $175 million to $400 million. Expand Energy Corporation (NASDAQ:EXE) plans to achieve the full $500 million in annual synergies by the end of 2026.
6. The Williams Companies, Inc. (NYSE:WMB)
Number of Hedge Fund Holders: 73
The Williams Companies, Inc. (NYSE:WMB) is an American energy company that is primarily focused on natural gas processing, transportation, and related services. With its 33,000-mile pipeline infrastructure, it handles about one-third of the natural gas in the United States. The Williams Companies, Inc. (NYSE:WMB) ranks among the best American energy stocks to buy.
On April 1, JPMorgan analyst Jeremy Tonet reiterated an “Overweight” rating on The Williams Companies, Inc. (NYSE:WMB) with a price target of $66. Tonet estimates an adjusted EBITDA of $1.97 billion for Q1 2025. This exceeds both the Street’s median estimate of $1.91 billion and JPMorgan’s previous forecast of $1.899 billion. Tonet suggests that Transco rates and the Southside Reliability Enhancement project, which adds 423 million cubic feet per day (mmcf/d) of capacity, will contribute to a $892 million adjusted EBITDA in The Williams Companies, Inc.’s (NYSE:WMB) Transcontinental Gas Pipe Line (TGoM) segment. This would be a $67 million increase from the previous quarter. Additionally, the company’s Western operations are expected to generate $384 million, up $39 million quarter-over-quarter, supported by the recent Rimrock acquisition.
For the full year of 2025, JPMorgan estimates a $7.721 billion adjusted EBITDA for The Williams Companies, Inc. (NYSE:WMB), which is slightly above the previous estimate of $7.687 billion and the Street’s median of $7.659 billion. Tonet expects the company’s earnings call to focus on early project competitions, potential benefits from a Transco rate case, and increased dry-gas gathering and processing (G&P) activity. JPMorgan also expects the company to discuss its Will-Power initiative, which includes the proposed Socrates North and South behind-the-meter (BTM) 200 megawatt (MW) power generation facilities in Ohio. The Williams Companies, Inc. (NYSE:WMB) is also looking at additional BTM solutions and potential deals for up to 1 gigawatt of capacity by 2027.
5. Chevron Corporation (NYSE:CVX)
Number of Hedge Fund Holders: 81
Chevron Corporation (NYSE:CVX) is a leading integrated energy company. The corporation produces crude oil and natural gas while also manufacturing transportation fuels, lubricants, petrochemicals, and additives. It is investing in developing new technologies, renewable fuels, hydrogen, and even power generation for data centers. Chevron Corporation (NYSE:CVX) ranks among the best American stocks to invest in.
The company is looking to increase production efficiency and optimize its portfolio. In 2024, Chevron Corporation (NYSE:CVX) delivered record-breaking production levels with global oil-equivalent production growing 7%. This increase was supported primarily by an 18% growth in the Permian Basin. Chevron Corporation (NYSE:CVX) has launched major growth projects and is actively looking to grow its exploration acreage position in the Gulf of America, Angola, Brazil, Equatorial Guinea, Uruguay, and Namibia. In January 2025, the corporation began producing oil at its Future Growth Project (FGP) located at the Tengiz oil field in Kazakhstan. This project is estimated to boost total output to approximately 1 million barrels of oil equivalent per day.
In an effort to strengthen its portfolio, Chevron Corporation (NYSE:CVX) also sold assets in Canada, the Republic of Congo, and Alaska. The company plans to cut costs by $2-3 billion by 2026 and also to divest $10-15 billion worth of assets by 2028. On March 31, Chevron Corporation (NYSE:CVX) announced the completion of its transaction to sell a 70% interest in its East Texas gas assets for $525 million to an affiliate of TG Natural Resources LLC.
4. ConocoPhillips (NYSE:COP)
Number of Hedge Fund Holders: 86
ConocoPhillips (NYSE:COP) is an American multinational energy corporation with a globally diversified asset portfolio. The company has operations in 14 countries and it is one of the world’s largest independent oil and natural gas exploration & production (E&P) companies based on both production and reserves. ConocoPhillips (NYSE:COP) ranks among the best American stocks to buy.
The company is actively working to strengthen its portfolio, investing in growth opportunities, and divesting non-core assets. In Q4 2024, ConocoPhillips (NYSE:COP) completed the acquisition of Marathon Oil. The company expects to achieve synergies of more than $1 billion on a run-rate basis within the next year. Additionally, in February 2025, ConocoPhillips (NYSE:COP) announced an agreement to sell its interests in the Ursa and Europa Fields and Ursa Oil Pipeline Company LLC to subsidiaries of Shell for $735 million. The transaction is expected to close by the end of Q2 2025 with an effective date of January 1, 2025. The deal also includes an overriding royalty interest in the Ursa Field. ConocoPhillips (NYSE:COP) aims to achieve $2 billion in dispositions and the sale of these assets shows significant progress toward this target.
3. EQT Corporation (NYSE:EQT)
Number of Hedge Fund Holders: 88
EQT Corporation (NYSE:EQT) is a vertically integrated American energy company with production and midstream operations focused in the Appalachian Basin. It is one of the largest natural gas producers in the US. EQT ranks among the best American energy stocks to buy now according to hedge funds.
On April 1, Mizuho Securities analyst Nitin Kumar raised the firm’s price target on EQT Corporation (NYSE:EQT) from $57 to $60 and maintained an “Outperform” rating. This adjustment is based on expectations that the company will surpass projections in the first quarter of 2025 for EBITDA by about 6% and cash flow per share (CFPS) by approximately 13% because of robust natural gas pricing. Kumar’s analysis highlighted that EQT Corporation’s (NYSE:EQT) position as the second largest natural gas producer in the US positions it favorably to benefit from current market conditions. The company’s Q1 2025 results are expected to be positively influenced by these benefits and also from the ongoing efforts to realize synergies related to EQT Corporation’s (NYSE:EQT) acquisition of Equitrans Midstream Corporation, which was completed in July 2024.
2. Hess Corporation (NYSE:HES)
Number of Hedge Fund Holders: 92
Hess Corporation (NYSE:HES) is a leading independent energy company that focuses on exploring oil, gas, and energy solutions. The company has a strong position in the Bakken in North Dakota and is one of the largest producers in the deepwater Gulf of Mexico. It also operates offshore Guyana and is a major natural gas producer and supplier to Peninsular Malaysia and Thailand. Hess Corporation (NYSE:HES) is one of the best American stocks to invest in.
On February 10, Raymond James reiterated a “Market Perform” rating on Hess Corporation (NYSE:HES) following the company’s Q4 2024 earnings, which exceeded expectations. Hess Corporation (NYSE:HES) reported earnings per share (EPS) of $1.76 to surpass the street’s projection of $1.53, and cash flow per share (CFPS) of $4.93 to beat the $4.29 forecast by about 15%. This success was driven by higher-than-expected total production and oil and natural gas realizations as Hess Corporation (NYSE:HES) reported a total production output of 495 thousand barrels of oil equivalent per day (mboe/d) for Q4 2024, surpassing the projected 481 mboe/d. Interestingly, the company’s operating costs were also 7% less than Raymond James’s projections. Despite this performance, Raymond James slightly reduced its production outlook for the first quarter of 2025 to 469 mboe/d because of winter weather impacts in the Bakken region and maintenance at the Payara development in Guyana. Additionally, keeping in mind Hess Corporation’s (NYSE:HES) ongoing expansion efforts in Guyana’s Stabroek Block, Raymond James adjusted its 2025 capital expenditure projection to align with the guidance midpoint of $4.5 billion, but slightly below street estimates of $4.6 billion.
1. Exxon Mobil Corporation (NYSE:XOM)
Number of Hedge Fund Holders: 104
Exxon Mobil Corporation (NYSE:XOM) is an American multinational oil and gas corporation that ranks among the best American stocks to buy. The company’s primary businesses are Upstream, Energy Products, Chemical Products, and Specialty Products. Exxon Mobil Corporation (NYSE:XOM) has an industry-leading portfolio of resources and provides energy, chemicals, lubricants, and lower-emissions technologies.
On February 4, DBS analyst Suvro Sarkar reiterated a “Buy” rating on Exxon Mobil Corporation (NYSE:XOM) with a price target of $133 while citing the company’s strong financial performance and strategic initiatives. Despite challenges in the refining segment, the company’s earnings for the fourth quarter of 2024 surpassed expectations. Exxon Mobil Corporation (NYSE:XOM) also announced substantial share buybacks and a dividend increase. The company has increased its annual dividend for 42 consecutive years. Sarkar highlighted the corporation’s potential for growth with key projects set to start in 2025 that are expected to further improve earnings by 2026. The acquisition of Pioneer Natural Resources has strengthened the company’s position in the Permian Basin and also enhanced its production capabilities. In 2024, Exxon Mobil Corporation (NYSE:XOM) achieved record production in the Permian Basin.
Overall, XOM ranks first among the 11 best American energy stocks to buy now. While we acknowledge the potential of American energy 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. 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 the cheapest AI stock.
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