In this article, we will take a look at the 12 Best Energy Stocks to Buy According to Billionaire Ken Fisher.
Ken Fisher, an American billionaire investor, author, and financial analyst, founded and manages Fisher Asset Management. He is one of the world’s most renowned investment managers, known for his contrarian style and strong confidence in capitalism. With an estimated net worth of more than $11.2 billion, he is also one of the wealthiest billionaires in the world. Fisher launched his fund in 1979, which has since developed into a global investment powerhouse that manages over $252 billion in securities. That said, Fisher’s influence extends beyond asset management to include financial journalism and publishing. He penned a Forbes magazine column for more than three decades, the longest in the magazine’s history, and authored eleven books, four of which were New York Times bestsellers.
Notably, Fisher pioneered the use of the Price-to-Sales Ratio in the early 1980s, demonstrating its use as a tool for financial investment research. His hedge fund uses this technique to manage small-capitalization portfolios for institutional investors across the globe. Fisher Asset Management’s concept is founded on Ken Fisher’s understanding of the operation of free markets. The billionaire investor believes that supply and demand are the only factors influencing securities prices and that capital markets are generally effective discounters of well-known information.
Energy Sector Outlook
Energy companies were off to a solid start this year, outperforming the S&P 500 for the first time in years, driven by gains in natural gas equities as prices recover from record lows. The sector’s advances indicate a notable turnaround for the industry. Energy stocks fell 1.3% in 2023 and only gained 5.7% last year, while the S&P 500’s bull run continued, rising over 50% over the past two years. According to most analysts, the sector’s excellent year has been fueled by a comeback in oil and gas prices with the beginning of the cold weather in the United States, resulting in significant gains for natural gas equities.
As the energy sector evolves, investors must balance the stability of traditional fossil fuels with the growing potential of renewables and modern nuclear technologies. In such a market dynamic, oil and gas firms have placed importance on high-return investments and increased production efficiency, which has led to noteworthy financial performance and investor confidence. According to Deloitte, industry capital expenditures have risen 53% in the last four years, while net profit has increased by approximately 16%. Despite ongoing uncertainties over OPEC+ production cutbacks and potential interruptions to energy commerce, the industry’s financial discipline, customer-focused initiatives, and technical advances position it for a successful 2025.
Ken Fisher is also among those who feel that the energy sector is vulnerable to fossil fuel prices and will remain so for the foreseeable future. Aside from some short-term volatility on occasion, the billionaire predicts oil prices will stay steady this year as increased supply is countered by stronger global economic development. Speaking on this, Ken Fisher said the following:
But the fact of the matter is, there’s some things you can say, and a lot of people don’t want to hear them. We as a culture— the global culture—cannot get away from fossil fuel. Oil and natural gas are going to dominate what happens to energy in 2025.
We are not going to see, if you’re my age, in my lifetime, the ability to escape from fossil fuel. Maybe someday we will. But the reality is there’s an abundant amount of fossil fuel to be recovered. The laws of physics go against most all the alternatives, one way or another. And even if you can ramp up the alternatives without huge government subsidy, which so far has not been able to be done, the amount by which you can do that doesn’t match the growth in demand for energy that lies ahead. And when I say lies ahead, that lying ahead is not a terribly different growth than what we’ve seen in the past. It is going to be bigger, but not that much bigger. One of the reasons that it becomes bigger, I want you to think this through, is because as economies in the Third World emerge and develop, they inherently consume more energy.
Our Methodology
For our list of the 12 best energy stocks to buy according to Ken Fisher, we looked through the billionaire’s Q4 2024 stock portfolio and ranked the following energy equities based on his hedge fund’s stake value in each holding. Additionally, we have mentioned the hedge fund sentiment around each stock, as of Q4 2024.
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).
12. Matador Resources Company (NYSE:MTDR)
Fisher Asset Management’s Stake: $44.19 million
Number of Hedge Fund Holders: 38
Matador Resources Company (NYSE:MTDR) is an energy firm that is involved in the exploration, development, and production of oil and gas. It holds a notable presence in the Delaware Basin, while also operating in the Eagle Ford and Haynesville Shales, overseeing midstream activities that support oil production.
The company’s fourth-quarter profits came in mixed, with oil production marginally below forecast owing to midstream restrictions, though profitability and adjusted free cash flow beat consensus estimates. Despite higher-than-expected capital expenditures, Matador Resources Company (NYSE:MTDR) increased its annual base dividend by 25% to $1.25 per share, indicating optimism about future cash flow and production growth.
Following the company’s Q4 report, JPMorgan maintained its Overweight rating on Matador Resources Company (NYSE:MTDR) and raised the price target from $75 to $76. According to JPMorgan’s new model, Matador would produce 123.5 MBo/d of oil by FY25, which is up from earlier projections and somewhat higher than the Street’s expectations. JPMorgan also predicts Matador’s drilling and completion (D&C) costs to fall by an additional 3% in FY25, to around $880 per foot.
11. Helmerich & Payne, Inc. (NYSE:HP)
Fisher Asset Management’s Stake: $45.26 million
Number of Hedge Fund Holders: 30
Helmerich & Payne, Inc. (NYSE:HP) is a US-based petroleum drilling company that provides oil and gas well drilling services, as well as associated solutions to exploration and production companies. The firm also specializes in creating and implementing sophisticated automation, directional drilling, and survey management systems.
Helmerich & Payne, Inc. (NYSE:HP) reported first-quarter 2025 revenue of $677.3 million, which was lower than Wall Street’s consensus expectation of $691.49 million. Despite the shortfall, the company’s earnings per share came in at $0.71, slightly higher than the predicted $0.69.
On the other side, Helmerich & Payne, Inc. (NYSE:HP) completed its business combination with KCA Deutag, a drilling, engineering, and technology services firm located in the UK, on January 16. The acquisition, which cost nearly $2 billion, is seen as a way to strengthen the global onshore drilling position, increase rig count, and improve the combined company’s standing in America and the Middle East.
10. Suncor Energy Inc. (NYSE:SU)
Fisher Asset Management’s Stake: $133.2 million
Number of Hedge Fund Holders: 50
Suncor Energy Inc. (NYSE:SU) is a premier integrated energy company headquartered in Alberta, Canada, that explores, develops, and produces crude oil and natural gas, as well as refines and markets petroleum products.
On January 7, BMO Capital Markets reaffirmed Suncor Energy Inc.’s (NYSE:SU) Outperform rating alongside a price target of Cdn$65. According to the firm, Suncor’s 2024 was characterized by improved dependability, fast turnarounds, significant production increase, and great facility utilization. Following the examination of the operational update, which contained multiple quarterly and yearly records for the fourth quarter and the whole year of 2024, analysts expressed optimism that Suncor Energy Inc. (NYSE:SU) is well-positioned to maintain its momentum into 2025.
Suncor Energy Inc.’s (NYSE:SU) latest earnings report for the fourth quarter of 2024 revealed strong financial performance and record operational indicators, capping an excellent year. The firm raked in $3.5 billion in adjusted funds from operations and $1.9 billion in free cash flow, with significant distributions to shareholders via dividends and share repurchases. Suncor also achieved record upstream production of 875,000 barrels per day and notable refinery utilization rates. Despite a fall in net earnings from the previous year, Suncor’s adjusted operating profitability was robust, driven by rising sales volumes and strategic expenditures, such as a new cogeneration facility.
9. EOG Resources, Inc. (NYSE:EOG)
Fisher Asset Management’s Stake: $149.6 million
Number of Hedge Fund Holders: 62
EOG Resources, Inc. (NYSE:EOG) is a Texas-based company that explores, develops, produces, and markets hydrocarbons such as crude oil, natural gas, and natural gas liquids.
EOG Resources, Inc. (NYSE:EOG) exceeded Q4 earnings projections with an EPS of $2.74, despite costs increasing 3.6% YoY and overall quarterly revenue declining 12% YoY to $5.59 billion. The company’s Q4 volumes were also up 6.7% YoY at almost 1.1 million boepd, and it has outlined a $6.2 billion capital plan to increase oil output by 3% and total production by 6% as of 2025.
On March 4, UBS analysts, led by Josh Silverstein, decreased EOG Resources, Inc.’s (NYSE:EOG) price target from $165 to $160 while maintaining a Buy rating on the stock. The change followed the company’s mixed fourth-quarter 2024 financial performance and first-quarter 2025 estimates, which fell short of expectations. Despite this, UBS emphasized EOG Resources’ strong financial position and assets. The firm noted the company’s top-tier financial sheet and strong asset base, which is expected to become more capital-efficient by 2025.
8. Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR)
Fisher Asset Management’s Stake: $204.3 million
Number of Hedge Fund Holders: 31
Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) is an integrated and specialized oil, natural gas, and energy company with a primary focus on exploration and production, refining, energy generation, and marketing.
Petróleo Brasileiro S.A. – Petrobras’ (NYSE:PBR) fourth-quarter earnings per share came in at $1.25, up 16% yearly and $0.05 more than expected. However, revenues of $2,579 million, a 1% rise over the previous year, fell short of expectations by $3 million.
On March 10, HSBC analyst Liyanna Yang raised Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) from Hold to Buy, with a $15 price target. Yang’s confidence in the energy company is based on projections of a great performance in 2025, despite current challenges. Petrobras lately experienced pressure from greater spending and tighter crack spreads, which caused the company’s stock price to decrease following disappointing 2024 results. However, HSBC sees this as a chance for investors to buy shares at a discount before the expected rise.
7. BP p.l.c. (NYSE:BP)
Fisher Asset Management’s Stake: $689.9 million
Number of Hedge Fund Holders: 44
BP p.l.c. (NYSE:BP) is a global energy giant founded in 1908. The company engages in a variety of energy sectors, including natural gas production, wind power, hydrogen, carbon capture, and oil production. BP also invests in EV charging infrastructure, retail gasoline distribution, and lubricant manufacture.
On March 4, Citi reaffirmed its confidence in BP p.l.c (NYSE:BP), maintaining a Buy rating and a price target of GBP5.15 for the company. The endorsement follows BP’s recent strategy update, which Citi analysts have factored into their financial models. The company has demonstrated financial stability by paying dividends for 34 consecutive years, resulting in a current yield of around 6%. The unit depreciation cost estimates have been updated to reflect the higher expenditures spent over the 2023-24 period. Despite these changes, Citi’s forecast for BP’s average earnings per share between 2025 and 2030 fell by just 3%.
6. TotalEnergies SE (NYSE:TTE)
Fisher Asset Management’s Stake: $1.2 billion
Number of Hedge Fund Holders: 26
TotalEnergies SE (NYSE:TTE) is a multinational energy company that produces and sells oil and biofuels, natural gas, green gases, renewables, and electricity worldwide. The company is divided into five business segments: Exploration & Production, Integrated LNG, Integrated Power, Refining & Chemicals, and Marketing & Services. Last year, it began production on five large projects: Mero 2 and 3 in Brazil, Akpo West in Nigeria, Anchor in the United States, and Fenix in Argentina. In addition, the company extended its US gas business by acquiring dry gas assets in Texas.
TotalEnergies SE (NYSE:TTE) reported a strong financial performance in the fourth quarter of 2024, with adjusted net income up 8%, rising to $4.4 billion on account of its diversified multi-energy business strategy, notably in Integrated LNG and Integrated Power. Despite a tougher market environment in 2024 compared to the spectacular performance in 2023, the oil giant achieved an adjusted net income of more than $18 billion and a 14.8% return on average capital employed (ROACE), preserving its position as the highest performer among peers.
5. Canadian Natural Resources Limited (NYSE:CNQ)
Fisher Asset Management’s Stake: $1.36 billion
Number of Hedge Fund Holders: 54
Canadian Natural Resources Limited (NYSE:CNQ) is a Canadian energy company focused on the exploration, development, and production of crude oil, natural gas, and natural gas liquids. The company operates in markets across North America and abroad through its varied portfolio, which includes oil sands mining, conventional oil and gas activities, and offshore initiatives.
On March 7, Evercore ISI analyst Stephen Richardson upgraded Canadian Natural Resources Limited (NYSE:CNQ) from In Line to Outperform, maintaining a price target of C$58. Richardson pointed to the company’s consistent management strategy and diverse portfolio as notable benefits. According to Evercore ISI, Canadian Natural Resources might meet its debt objective of C$15 billion by early 2028, with shareholders possibly receiving 75% of free cash flow. Based on its commodities prediction, the firm projects a 13% free cash flow return for the company, with a 9.2% shareholder yield in 2025.
Canadian Natural Resources Limited (NYSE:CNQ) reported outstanding financial and operational performance in the fourth quarter of 2024. The company hit record production levels, producing more than one million barrels of liquids per day, and recorded an annual adjusted funds flow of $14.9 billion. The fourth quarter alone generated an adjusted funds flow of $4.2 billion. Additionally, Canadian Natural Resources intends to develop its Jack Pine mine, potentially boosting output by 100,000 barrels per day.
4. ConocoPhillips (NYSE:COP)
Fisher Asset Management’s Stake: $1.36 billion
Number of Hedge Fund Holders: 86
ConocoPhillips (NYSE:COP) is a global energy company headquartered in Texas that discovers, produces, transports, and trades crude oil, bitumen, natural gas, liquefied natural gas, and natural gas liquids.
ConocoPhillips (NYSE:COP) performed well in 2024 after completing the $22.5 billion acquisition of Marathon in late November, which added high-quality, low-cost supply inventories to the portfolio. During the year, the company returned $9.1 billion in capital to its shareholders, representing 45% of operational cash flow. In addition, ConocoPhillips has managed to raise its dividend for ten consecutive years and has declared its regular dividend of $0.78 per share for the first quarter of 2025, with intentions to return $10 billion to shareholders this year.
On March 12, JPMorgan reaffirmed its Overweight rating and $127 price target on ConocoPhillips (NYSE:COP). The firm’s analysts emphasized the company’s recent fourth-quarter performance, which exceeded expectations, as well as its long-term outlook for 2025, which includes a $10 billion capital return plan. JPMorgan analysts said that ConocoPhillips (NYSE:COP) has historically outperformed its E&P peers due to the portfolio’s defensive structure, which includes a solid balance sheet, modest sustaining capital expenditures, and a low-cost resource base. In that regard, the firm believes the company’s recent underperformance compared to its Large Cap E&P and US Major peers is due to market concerns about potential risks to the company’s 2025 return of capital target, as well as a narrow view of the company’s long-cycle investment program.
3. Shell plc (NYSE:SHEL)
Fisher Asset Management’s Stake: $1.56 billion
Number of Hedge Fund Holders: 54
Shell plc (NYSE:SHEL) is a multinational energy and petrochemical corporation that explores, produces, and sells crude oil, natural gas, natural gas liquids, low-carbon fuels, lubricants, bitumen, and petrochemicals. The company also makes investments in renewable energy generation, hydrogen sales, and electric car charging infrastructure.
Shell plc (NYSE:SHEL) reported adjusted earnings of $3.7 billion for Q4 2024, citing weaker pricing and margins. That said, the firm also reported $22.6 billion in shareholder payments amid strong cash flow, making up 41% of total cash flow from operations. Furthermore, Shell plc (NYSE:SHEL) announced a 4% dividend hike and a new $3.5 billion repurchase program, marking the 13th consecutive quarter of at least $3 billion in buybacks.
Shell plc (NYSE:SHEL) stated on January 24 that it had completed its acquisition of RISEC Holdings, adding a 609 MW gas power plant in Rhode Island to its portfolio. This agreement serves to ensure a long-term energy supply in the ISO New England market.
2. Chevron Corporation (NYSE:CVX)
Fisher Asset Management’s Stake: $2.88 billion
Number of Hedge Fund Holders: 81
Chevron Corporation (NYSE:CVX), based in San Ramon, California, is a major American global energy company that specializes in the oil and gas industry. Founded as the Standard Oil Company of California, it is the second-largest direct descendant of Standard Oil. The firm works in more than 180 countries throughout the world.
Chevron Corporation (NYSE:CVX) announced earnings of $2.06 per share in Q4 2024, which fell short of expert forecasts. Quarterly revenues rose to $52.23 billion, a 10.7% increase over the previous year and more than $3.8 billion higher than Wall Street expected. The company also displayed financial strength in FY24, with $31.5 billion in operational cash flow and $15 billion in free cash flow.
Separately, Chevron Corporation (NYSE:CVX) disclosed on March 17 that it had purchased roughly 4.99% of Hess Corporation’s common shares, indicating confidence in the upcoming acquisition of Hess. These purchases, made between January and March 2025, supplement Chevron’s current stock repurchase program for the first quarter ending March 31, 2025.
1. Exxon Mobil Corporation (NYSE:XOM)
Fisher Asset Management’s Stake: $3.2 billion
Number of Hedge Fund Holders: 104
Exxon Mobil Corporation (NYSE:XOM) engages in the production, trade, transportation, and sale of crude oil, natural gas, petroleum products, petrochemicals, and specialized goods. The company is also involved in low-emission technologies.
Exxon Mobil Corporation (NYSE:XOM) reported $83.4 billion in revenue for the fourth quarter of 2024, a tiny 1.1% decrease from the previous year. The company also earned $55 billion in free cash flow, while total free cash flow for the year came in at $36.2 billion, with $16.7 billion distributed through dividends. Moreover, the company achieved a production record with Heritage ExxonMobil and Pioneer holdings in the Permian Basin, with output expected to increase from 1.5 million oil-equivalent barrels per day at the end of 2024 to 2.3 million barrels per day by 2030.
Looking forward, Exxon Mobil Corporation (NYSE:XOM) intends to launch several major projects in the following years, with the goal of generating more than $3 billion in earnings by 2026. With a long-term commitment on optimizing its asset portfolio, the company anticipates advantaged assets to account for 60% of its Upstream output by 2030.
While we acknowledge the potential of XOM as an investment, our conviction lies in the belief that certain 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 XOM but 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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