In this article, we are going to discuss the 12 best energy stocks to invest in according to billionaires.
After significantly lagging behind in 2024, the broader energy sector finally seems to be doing better now with gains of 6.21% since the beginning of 2025, against a decline of 3.42% by the wider market during the period.
READ ALSO: 12 Best Nuclear Power Stocks To Buy Now
The ongoing artificial intelligence boom is a significant growth driver for the energy industry, as its accompanying data centers consume 10 to 50 times the amount of energy per square foot of a typical commercial office building. According to the Department of Energy, the energy use by America’s data centers could reach between 74 and 132 gigawatts by 2028, or 6.7% to 12% of the total electricity consumption in the country. A large number of power companies are already ramping up their capacity to meet this growing power demand. It is forecasted that US electricity demand will grow 55% over the next 20 years, six times faster than the 9% growth witnessed over the past two decades.
According to energy data provider Enverus, a total of 80 new gas power plants could be constructed in America by the end of the decade to meet this growing demand. However, the price of natural gas has surged by over 140% over the last year and the costs for gas power plants have also soared in the last 18 months. If the US concentrates only on gas, it will become even more expensive, forcing up bills for consumers and businesses.
Nuclear energy has also received a massive boost in recent years, largely driven by its widespread recognition of its role in the global ‘clean energy transition’. The International Energy Agency recently revealed that nuclear is set to generate a record level of electricity this year. There are more than 70 gigawatts of new nuclear capacity under construction around the world, one of the highest levels in the last 30 years. Moreover, on the sidelines of the CERAWeek conference earlier this month, several major corporations have signed a pledge to support the goal of at least tripling the world’s nuclear energy capacity by 2050.
Despite the best efforts by the incumbent Trump administration to hamper its progress, the clean-energy industry is on pace for record growth this year. According to the US Energy Information Administration, the share of new power capacity that is expected to come online this year from renewables and batteries will jump to 93%.
The promising future prospects of the energy industry can also be reaffirmed by the growing interest of billionaire investors, who have significantly raised their stakes in the sector. Even Warren Buffett’s Berkshire Hathaway acquired an additional 763,017 shares of an oil and gas giant in Q4 2024, despite the ongoing issues faced by the industry. But while Buffett’s portfolio leans heavily on oil and gas, Berkshire Hathaway Energy operates one of the largest renewable energy portfolios in the US and has invested over $40 billion in wind, solar, and hydroelectric projects.
With that said, here are the Billionaires’ Favorite Energy Stocks to Buy Now.
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Methodology
To collect data for this article, we scanned Insider Monkey’s database of billionaires’ stock holdings and picked the top 12 companies operating in the energy sector with the highest number of billionaire investors 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 Energy 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).
12. Valero Energy Corporation (NYSE:VLO)
Number of Billionaire Holders: 14
Valero Energy Corporation (NYSE:VLO) is the world’s largest independent petroleum refiner and a leading producer of low-carbon transportation fuels. Founded in 1980, the company has 15 refineries in the US, Canada, and the UK, with a total throughput capacity of approximately 3.2 million barrels per day.
Valero Energy Corporation (NYSE:VLO) reported better-than-expected results in Q4 2024, posting an adjusted EPS of $0.64, significantly above expectations of $0.06. Meanwhile, the quarterly revenue came in at $30.76 billion, beating estimates by over $733 million. However, both the revenue and net income witnessed a significant YoY decline, highlighting the ongoing challenges in the refining sector. This is reflected in the performance of Valero’s refining segment in the fourth quarter, which reported only $437 million of operating income compared to $1.6 billion for the Q4 of 2023. Despite the issues, VLO returned $4.3 billion to stockholders in 2024, consisting of $2.9 billion in stock buybacks and $1.4 billion in dividends. The company also increased its quarterly cash dividend by 6%, placing it among the 13 Best Natural Gas and Oil Dividend Stocks To Buy.
In a significant development, Valero Energy Corporation (NYSE:VLO) completed the Sustainable Aviation Fuel project at the DGD Port Arthur plant in the fourth quarter of 2024 and is now fully operational. Since 2009, the company has invested over $5.4 billion in its low-carbon businesses, making it the world’s largest producer of low-carbon transportation fuels.
11. Chevron Corporation (NYSE:CVX)
Number of Billionaire Holders: 14
Chevron Corporation (NYSE:CVX) is the second-largest integrated energy company headquartered in the United States. Through its subsidiaries and affiliates, the company produces crude oil, natural gas, and many other essential products.
Chevron Corporation (NYSE:CVX)’s Q4 2024 EPS of $2.06 per share narrowly missed expectations as weak margins dragged its refining business into a loss for the first time in the last four years. However, the energy giant managed to increase its revenue by 10.7% YoY to $52.23 billion and topped estimates, as it increased its worldwide and US production by 7% and 19% respectively to record levels last year. Chevron also maintains a strong balance sheet, ending the year with a net debt ratio of 10%. The company returned a record $27 billion in cash to its shareholders in 2024 and increased its quarterly dividend by 4.9% to $1.71 per share in January. CVX has been increasing its annual dividends for an impressive 38 years and is counted among the 25 Best Dividend Stocks to Buy According to Billionaires.
To make sure it doesn’t miss out on the ongoing AI boom, Chevron Corporation (NYSE:CVX) is targeting the development of data center sites and power plants that are around 1 GW in capacity and targeted to come online in the next two to three years.
10. 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 it reported a profit of $3.66 billion, the lowest quarterly profit in the last 3 years. The company’s adjusted EPS of $1.18 missed estimates by $0.31 and its quarterly revenue of $66.28 billion was also below expectations by over $5.5 billion. Despite the downturn in earnings, Shell managed to generate a free cash flow of $40 billion across 2024, higher than the previous year, even with the lower price environment. The company also increased its dividend by 4% and launched another share buyback program of $3.5 billion, making it the 13th consecutive quarter of at least $3 billion of share repurchases.
Shell plc (NYSE:SHEL) also revealed that it delivered a record 1.1 million tons of marine liquefied natural gas to power vessels in 2024. The company expects the number of LNG-powered vessels to nearly double to more than 2,000 in the next five years.
9. First Solar, Inc. (NASDAQ:FSLR)
Number of Billionaire Holders: 15
Next on our list of the Best Energy Stocks is First Solar, Inc. (NASDAQ:FSLR), a leading American solar technology company and global provider of responsibly produced eco-efficient solar modules.
First Solar, Inc. (NASDAQ:FSLR) reported a mixed performance in Q4 2024. The company posted an EPS of $3.65 against estimates of $4.73. However, the company’s overall net income for the full year 2024 surged by a hefty 55.5% YoY. Moreover, FSLR’s Q4 revenue of $1.51 billion was up 30.7% YoY and topped expectations by $33.54 million. The increase was primarily a result of increased module sales. The company provided 2025 sales guidance of $5.55 billion at the midpoint, slightly above the average estimate of $5.52 billion.
First Solar, Inc. (NASDAQ:FSLR) remains focused on expanding its manufacturing capabilities and is constructing a $1.1 billion manufacturing facility in Louisiana. The project is on track to begin commercial operations in the second half of this year and is expected to increase the company’s global nameplate manufacturing capacity to over 25 gigawatts by 2026. Additionally, a new R&D center in Ohio has been launched to drive innovation and strengthen the solar technology company’s leadership. First Solar’s operational manufacturing footprint in Ohio, Alabama, and Louisiana represents over $4 billion in US manufacturing investments.
8. PG&E Corporation (NYSE:PCG)
Number of Billionaire Holders: 16
PG&E Corporation (NYSE:PCG) provides natural gas and electric service to approximately 16 million people throughout a 70,000-square-mile service area in northern and central California.
PG&E Corporation (NYSE:PCG)’s adjusted EPS of $0.31 in Q4 2024 was in line with expectations, but its revenue of $6.63 billion was down 5.82% YoY and missed estimates by $587.6 million. Moreover, the company’s operating cash flow of $8 billion in 2024 was also significantly up from $4.7 billion in the year before. PCG announced an annual dividend rate of $0.10 per share for 2025, significantly from $0.04 last year. The company announced that it is targeting to reach a dividend payout ratio of 20% of its core earnings per share by 2028 with consistent annual increases.
PG&E Corporation (NYSE:PCG) is working to serve approximately 5.5 gigawatts of new data center energy demand over the next decade, with 1.4 GW currently in final design and projected to come online by 2030. The company has also announced in its 2024 earnings call that it has achieved a second consecutive year of zero major wildfires caused by its equipment.
7. Schlumberger Limited (NYSE:SLB)
Number of Billionaire Holders: 16
Schlumberger Limited (NYSE:SLB) is the world’s leading provider of technology for reservoir characterization, drilling, production, and processing to the global energy industry. The company’s clients include major oil and gas producers worldwide.
Schlumberger Limited (NYSE:SLB) had a strong Q4 2024 as its adjusted EPS of $0.92 outperformed expectations by $0.02. The company’s revenue of $9.28 billion was also up 3.27% YoY and above estimates by almost $103 million. SLB is also benefiting from its global scale, highlighted by 12% international revenue growth in its full year 2024. The oilfield services company generated an operating cash flow of $2.39 billion and a free cash flow of $1.63 billion in the fourth quarter. It also entered into accelerated share repurchase (ASR) transactions to repurchase $2.3 billion of its stock and raised its quarterly dividend by 3.6% to $0.285 per share. The company plans to return a minimum of $4 billion to its shareholders in 2025.
Shares of Schlumberger Limited (NYSE:SLB) have surged by over 6% since the beginning of the year. SLB was also included in our list of the 12 Most Undervalued Large Cap Stocks to Buy Now.
Ariel Investments stated the following regarding Schlumberger Limited (NYSE:SLB) in its Q4 2024 investor letter:
“Also in the quarter, we initiated a position in Schlumberger Limited (NYSE:SLB), the largest oilfield services company in the world by revenue. SLB provides equipment, services, and digital tools to help oil and gas producers operate more efficiently, including reservoir characterization, rig and well construction and production enhancement. We believe the company’s scale and technical expertise serves as a key differentiator. Weak near-term demand, an oil glut, falling commodity prices and concerns about future spending amid a global shift to renewable energies presented an attractive entry point. We believe there are tailwinds supporting rising demand over the medium-term, as national oil companies invest in long-cycle projects to grow capacity and address the natural decline of production. Additionally, we expect SLB will continue to evolve their capabilities to help clients with rising energy needs going forward.”
6. ConocoPhillips (NYSE:COP)
Number of Billionaire Holders: 16
ConocoPhillips (NYSE: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) has transformed itself into a low-cost oil producer by selling its higher-cost oil assets and recycling that capital into acquiring lower-cost resources. The company capped off this transformation with the $22.5 billion acquisition of Marathon Oil last year, which added high-quality, low-cost supply inventory to its portfolio. As a result, COP now has over 20 billion barrels of resources with an average cost of supply at $32 per barrel.
ConocoPhillips (NYSE:COP) outperformed expectations in Q4 2024 as its adjusted EPS of $1.98 was above estimates by $0.15. The company’s revenue of $14.74 billion, though down 3.72% YoY, still topped consensus by almost $515 million. COP also generated $20.3 billion in cash from operations in 2024 and announced an ordinary dividend of $0.78 per share for Q1 of 2025. ConocoPhillips has grown its dividend for 10 consecutive years and wants to pursue a more aggressive shareholder return policy in 2025, with planned returns of $10 billion, including $6 billion in buybacks.
ConocoPhillips (NYSE:COP) has an annual dividend yield of 3.06% as of March 22, 2024, putting it among the 13 Best Natural Gas and Oil Dividend Stocks To Buy.
5. Exxon Mobil Corporation (NYSE:XOM)
Number of Billionaire Holders: 16
Ranked number 5 on our list of the Best Energy Stocks According to Billionaires is Exxon Mobil Corporation (NYSE:XOM), one of the largest integrated fuels, lubricants, and chemical companies in the world.
Exxon Mobil Corporation (NYSE:XOM) delivered an adjusted EPS of $1.67 in Q4 2024, beating estimates by $0.12. However, the company’s revenue of $83.43 billion was down 1.1% YoY and missed expectations by $3.77 billion. Moreover, the oil and gas giant achieved record production in Permian and Guyana, and record sales volumes of high-value products in its full-year 2024. As a result, Exxon 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. Moreover, since 2019, the company has achieved $12.1 billion in structural cost savings, outperforming its industry peers while helping to mitigate inflationary pressures and expansion costs.
Exxon Mobil Corporation (NYSE:XOM) is growing at an impressive pace, having grown its earnings at an annual rate of roughly 30% over the last five years. The oil major also remains committed to its shareholders and has distributed over $125 billion in dividends and buybacks during the period. Exxon has increased its annual dividend for 42 consecutive years and announced a quarterly dividend of $0.99 per share for Q1 of 2025. The company also has plans to repurchase $20 billion in shares annually through 2026.
4. Constellation Energy Corporation (NASDAQ:CEG)
Number of Billionaire Holders: 17
Constellation Energy Corporation (NASDAQ:CEG) is the largest producer of carbon-free energy in the US, with approximately 34,200 megawatts of generating capacity consisting of nuclear, wind, solar, natural gas, and hydroelectric assets.
Constellation Energy Corporation (NASDAQ:CEG) outperformed estimates in 2024 as its adjusted EPS of $2.44 beat expectations by $0.3. The company’s revenue of $5.38 billion was down by over 7% YoY but still above consensus by $633.73 million. Constellation reaffirmed its 2025 earnings guidance range of $8.90 to $9.60 per share. The company bought back $1 billion of its common stock in 2024 and increased its annual dividend by 25% last year, with expectations to grow it by another 10% in 2025.
Constellation Energy Corporation (NASDAQ:CEG) continues to expand in response to the growing power demand in the US. The company made headlines earlier this year when it agreed to acquire the privately held natural gas and geothermal company Calpine Corp for a net purchase price of $26.6 billion, one of the biggest blockbuster deals in American power industry history. The deal is expected to close by the end of the year and is expected to add $2 billion to CEG’s free cash flow annually. Together, the companies would have nearly 60 gigawatts of capacity from zero- and low-emission sources, including nuclear, natural gas, and geothermal.
3. NextEra Energy, Inc. (NYSE:NEE)
Number of Billionaire Holders: 17
NextEra Energy, Inc. (NYSE:NEE) is the world’s largest generator of renewable energy from the wind and sun and a global leader in battery storage. It also owns the Florida Power & Light Company, America’s largest electric utility which benefits greatly from the Sunshine State’s sunshine and growing population. Over the next four years alone, NEE plans to invest roughly $120 billion across the country, allowing it to grow its combined fleet to roughly 121 gigawatts.
NextEra Energy, Inc. (NYSE:NEE) reported an adjusted EPS of $0.53 in Q4 2024, which was in line with market expectations. However, its revenue of $5.39 billion was down 21.7% YoY and missed estimates by $2.53 billion. Over the past 20 years, the energy company’s earnings have grown at more than twice the rate of its closest competitors. And since 2021, NextEra delivered a CAGR in adjusted EPS of over 10%, which is the highest among all top 10 power companies.
NextEra Energy, Inc. (NYSE:NEE) boasts one of the sector’s strongest balance sheets and grew its 2024 operating cash flow by more than 17%, well in excess of adjusted earnings. The company’s dividend has grown at a huge 10% per year over the past decade and it expects to continue this growth over the next couple of years as well.
2. GE Vernova Inc. (NYSE:GEV)
Number of Billionaire Holders: 20
GE Vernova Inc. (NYSE:GEV) brings together General Electric’s portfolio of energy businesses including Power, Wind, Electrification, and Digital businesses. With approximately 57,000 wind turbines and 7,000 gas turbines, GEV’s technology base helps generate approximately 25% of the world’s electricity and has a meaningful role to play in the transition to clean energy.
GE Vernova Inc. (NYSE:GEV)’s quarterly net income more than doubled to $484 million in Q4 2024, but its EPS of $1.73 still missed expectations by $0.71. The company also posted a record revenue of $10.56 billion during the quarter as the growing need for reliable power boosted demand for its gas turbines as well as grid equipment and services. GEV also delivered approximately $600 million of positive free cash flow in the fourth quarter and nearly doubled its cash balance to over $8 billion. As a result, the energy giant approved an initial $6 billion share repurchase authorization and declared a quarterly dividend of $0.25 per share in January.
The strong market demand for gas generation presents a significant growth opportunity for GE Vernova Inc. (NYSE:GEV). For the full-year 2024, the company built approximately 20 gigawatts of gas orders, double the level in 2023, and secured 9 gigawatts of slot reservation agreements for new turbines, which should convert to orders by the end of 2026. Moreover, GEV delivers about $2 billion of upgrades annually in its gas business, expecting it to grow to $ 3 billion by the end of the decade.
1. Vistra Corp. (NYSE:VST)
Number of Billionaire Holders: 25
Topping our list of the Best Energy Stocks to Buy Now is Vistra Corp. (NYSE:VST), a leading Fortune 500 integrated retail electricity and power generation company based in Texas. Vistra is the largest competitive power generator in the US with a capacity of approximately 41 gigawatts.
Vistra Corp. (NYSE:VST) had a strong Q4 2024 as its revenue grew 31.16% YoY to just over $4 billion in Q4 2024, beating market estimates by $124 million. Meanwhile, its EPS of $2.41 was in line with expectations. The company maintains a robust balance sheet, generating an operating cash flow of over $4.56 billion in 2024 and ending the year with $1.2 billion in cash on hand. Vistra has committed to a minimum of $2.25 billion in share buybacks through 2025, with an additional $1 billion targeted.
A number of high-profile investors hold a position in Vistra Corp. (NYSE:VST), including the Democrat Nancy Pelosi. Pelosi recently purchased 50 Vistra call options with a strike price of $50 that expire in January 2026, which, given her track record in well-timed investments, signals strong conviction.
Meridian Funds stated the following regarding Vistra Corp. (NYSE:VST) in its Q4 2024 investor letter:
“Vistra Corp. (NYSE:VST) is an integrated retail and power generation company with operations across the U.S., primarily serving Texas and the Midwest. We believe Vistra is well-positioned to capitalize on the structural tightening of power markets, as electricity demand accelerates, and baseload generation capacity continues to retire. This trend has been amplified by the rapid growth of AI, which is driving unprecedented demand for data centers and the power required to run them. These factors create a favorable pricing environment for Vistra’s generation fleet, especially its nuclear and gas assets. The company has locked in much of this value via hedging, providing clear visibility into future cash flows. Vistra has also successfully grown its retail business and completed a strategic acquisition of Energy Harbor, which added a portfolio of nuclear, retail, and renewable assets.”
Overall, Vistra Corp. (NYSE:VST) ranks first on our list of the best energy stocks to invest in according to billionaires. While we acknowledge the potential for VST to grow, 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. If you are looking for an AI stock that is more promising than VST but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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