12 Best Gas Stocks To Buy According to Hedge Funds

2. Hess Corporation (NYSE:HES)

Number of Hedge Fund Holders: 75

Hess Corporation (NYSE:HES) is a prominent independent energy company focused on exploring and producing crude oil and natural gas. It has a strong presence in the Bakken shale formation in North Dakota and is a major player in the deepwater Gulf of Mexico. Additionally, Hess Corporation (NYSE:HES) is a key supplier of natural gas to Peninsular Malaysia and Thailand.

In the third quarter of 2024, the corporation reported impressive production figures, with oil and gas net production reaching 461,000 barrels of oil equivalent per day (boepd), a 17% increase from 395,000 boepd in the same period last year. Production from the Bakken contributed significantly, with production rising to 206,000 boepd, up from 190,000 boepd in Q3 2023. This growth is attributed to increased drilling activity, as the company operated four rigs and brought 37 new wells online during the quarter.

Hess Corporation (NYSE:HES) also announced an increase in its capital expenditures for exploration and production, raising its guidance for 2024 to approximately $4.9 billion from $4.2 billion. This increase reflects the decision to expedite the acquisition of floating production storage and offloading vessels, which will enhance operational efficiency.

Additionally, in the third quarter of 2024, Hess Corporation (NYSE:HES) reported cash operating costs of $13.84 per barrel of oil equivalent (boe), a slight improvement from $14.04 per barrel of oil equivalent (boe) in the same period last year. The company generated net cash from operating activities amounting to $1.51 billion, significantly up from $986 million in the third quarter of 2023. This solid cash flow indicates the corporation’s effective management and operational efficiency, making it an attractive investment option. With strong production growth and strategic investments, Hess Corporation (NYSE:HES) ranks among the best energy stocks.