In this article, we are going to discuss the 12 best oil and gas dividend stocks according to billionaires.
The United States of America is now producing more oil than any country in history. The country’s oil and gas operators produced more than 13.49 million barrels per day (bpd) of crude in December 2024, an all-time high rate of production. Oil production in America has increased by almost 50% over the last decade, and the US Energy Information Administration (EIA) now expects American crude oil production to average 13.59 million bpd in 2025, up from its previous estimate of 13.55 million bpd. But at the same time, the country’s production is at risk of decline due to falling Brent prices, which are expected to average around $74 this year and then fall further to about $66 in 2026.
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Another major problem for the US oil and gas industry is that the country’s largest oil field is flagging and may be nearing peak output. The Permian Basin led the US shale revolution and was responsible for almost half of the country’s overall production in December. However, relentless drilling over the last two decades has exhausted the oilfield’s core, and shale executives now expect oil production growth from the Permian to slow by around 25% to 250,000 to 300,000 bpd this year.
Oil and gas executives are also irked by the tariff policies adopted by the Trump administration, as the constant uncertainty is now threatening their drilling plans. A recently published survey by the Federal Reserve Bank of Dallas has revealed that oil executives are discontent with President Trump’s administration, and nearly a third even said that their business outlook had worsened since the end of 2024. Moreover, the imposition of the 25% tariff on steel and aluminum has already led to an estimated 4% increase in costs for drilling a well.
However, despite all the aforementioned issues and declining margins, the country’s oil and gas companies remain committed to shareholders and have increased their returns to record levels. A report by Janus Henderson has revealed that operators in the energy sector distributed over $49 billion in dividends during the third quarter of 2024, up from $32.2 billion three years ago. However, to maintain such high levels of payout, the industry will need to shift focus to its second major source of revenue – natural gas.
Unlike crude oil, the benchmark US natural gas price at Henry Hub has surged by over 114% over the last year, thanks to slowing output in 2024, booming LNG exports, and fast-depleting inventories during the coldest winter in six years. The EIA expects the US gas demand to reach record highs this year and next, and it has forecasted the country’s gas output to surge to 105.2 billion cubic feet per day (bcfd) in 2025, up from 103.2 bcfd last year and a record 103.6 bcfd in 2023.
It is worth mentioning that despite the industry’s recent decline in earnings, Warren Buffett’s Berkshire Hathaway has invested hundreds of millions of dollars in an oil and gas giant over the last few months. The Oracle of Omaha has a knack for dividends as around 80% of his portfolio is concentrated in dividend stocks, so the recent investment could be a reflection of his confidence in the sector’s payout potential.
With that said, here are the Best Oil and Gas Dividend Stocks To Buy Now.
An oil rig surrounded by the expanse of sea, the pumping operations in progress.
Our Methodology
To collect data for this article, we observed various companies working in the oil and gas sector and then picked out companies with the highest dividend yields as of March 28, 2025, and ranked them by their number of billionaire investors according to the Insider Monkey database as of Q4 2024. Following are the Best Oil and Gas Dividend 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. EOG Resources, Inc. (NYSE:EOG)
Number of Billionaire Holders: 13
Dividend Yield as of March 28: 3.08%
EOG Resources, Inc. (NYSE:EOG) is one of the largest crude oil and natural gas exploration and production companies in the United States, with proved reserves in the US and Trinidad.
EOG Resources, Inc. (NYSE:EOG) reported an adjusted EPS of $2.74 in Q4 2024, topping estimates by $0.17. However, the company’s revenue of $5.6 billion was down 12.14% YoY and missed expectations by $360 million. EOG invested $6.2 billion in CapEx in 2024, driving an annual production growth of 3% in oil and 8% in total company volume. The company wants to maintain this momentum and has forecasted a $6.2 billion capital program for 2025, delivering 3% oil volume growth and 6% total production growth.
EOG Resources, Inc. (NYSE:EOG) maintains a strong balance sheet and ended the year 2024 with $7.1 billion in cash, including approximately $700 million of estimated tax payments postponed to 2025 under IRS storm-related tax relief. The company generated $5.4 billion of free cash flow in 2024 and returned $5.3 billion to shareholders, well in excess of its commitment to return a minimum of 70% of annual free cash flow to shareholders. The company has never reduced or suspended its regular dividend in the last 27 years and has grown its dividend rate twice as fast as its peers’ average since 2019. EOG increased its regular dividend by 7% last year and announced a quarterly dividend of $0.975 per share in February.
11. The Williams Companies, Inc. (NYSE:WMB)
Number of Billionaire Holders: 13
Dividend Yield as of March 28: 3.37%
The Williams Companies, Inc. (NYSE:WMB) is an energy infrastructure company that specializes in natural gas processing and transportation.
The Williams Companies, Inc. (NYSE:WMB) had a strong Q4 as its adjusted EPS of $1.92 was in line with market expectations. Also, the company’s revenue of $2.74 billion, though down 1.74% YoY, managed to surpass estimates by almost $61 million. WMB has grown its EPS at an impressive 14% compound annual growth rate over the last five years. Over the last four years, the company has placed 17 large-scale projects in service with an additional 14 projects in execution today. Moreover, WMB disclosed earlier this month that it has inked a $1.6 billion agreement to develop onsite natural gas and power generation infrastructure for an undisclosed investment-grade company. The project is expected to be completed in the second half of next year.
The Williams Companies, Inc. (NYSE:WMB) has been paying a quarterly dividend since 1974. The company increased its quarterly dividend by 5.3% to $0.5 per share in January 2025.
Carillon Tower Advisors stated the following regarding The Williams Companies, Inc. (NYSE:WMB) in its Q4 2024 investor letter:
“The Williams Companies, Inc. (NYSE:WMB) performed well because investors expect it to benefit from growing demand for natural gas over the next several years or even decades. Liquid natural gas exports, onshoring, and data center build outs could place upward pressure on the company’s volumes across its midstream portfolio. We believe that the company’s share price continues to discount this future benefit due to a very challenging overall energy backdrop.”
10. Devon Energy Corporation (NYSE:DVN)
Number of Billionaire Holders: 13
Dividend Yield as of March 28: 3.39%
Ranked at number 10 on our list of the Best Oil and Gas Dividend Stocks is Devon Energy Corporation (NYSE:DVN), a leading independent energy company engaged in finding and producing oil and natural gas, with operations focused onshore in the United States.
Devon Energy Corporation (NYSE:DVN) reported a strong performance in Q4 2024, especially after the integration of its Grayson Mill assets. The company’s oil production reached an all-time high of 398,000 barrels per day, largely driven by the timing and productivity of its Eagle Ford wells. Meanwhile, its overall oil and gas production hit 848,000 barrels of oil equivalent per day (boed) in the fourth quarter, surpassing prior estimates of 811,000 boed to 830,000 boed. As a result, DVN’s Q4 2024 revenue came in at $4.4 billion, up 6.22% YoY and above estimates by over $155.3 million. The company’s adjusted EPS of $1.16 also topped expectations by $0.16.
Devon Energy Corporation (NYSE:DVN) generated $3 billion of free cash flow in 2024, of which it returned $2 billion to its shareholders. The remaining $1 billion was used to strengthen its balance sheet, following the $5 billion acquisition of Grayson Mill Energy last year. The company raised its dividend by about 9% to $0.24 per share last month and is targeting up to a 70% cash return payout for shareholders from generated free cash flow in 2025. Moreover, it expects ‘a cadence of about $200 million to $300 million a quarter for share repurchases throughout the year’.
9. Cenovus Energy Inc. (NYSE:CVE)
Number of Billionaire Holders: 13
Dividend Yield as of March 28: 3.56%
Cenovus Energy Inc. (NYSE:CVE) is an integrated oil and natural gas company, based in Calgary, Alberta, with operations that span Canada, the United States, and the Asia Pacific region. It is among the best dividend stocks on our list.
Cenovus Energy Inc. (NYSE:CVE) narrowly missed estimates for its Q4 2024 profit, as its EPS of $0.19 was slightly below expectations of $0.2. However, the company’s upstream production rose 1% YoY to 808,600 boed in the fourth quarter, while downstream throughput increased to 579,100 barrels per day from 473,500 bpd a year earlier. Still, CVE’s revenue of $9 billion during the quarter was down 7.29% YoY and below market expectations by $1.11 billion, primarily due to lower commodity prices. Notably, the company generated around $5.6 billion of adjusted funds flow in 2024 and returned about $2.24 billion to shareholders through dividends, share repurchases, and the redemption of preferred shares. The company announced a quarterly dividend of $0.13 per share in February.
Cenovus Energy Inc. (NYSE:CVE) announced in February that it is planning to redeem all of its 8 million outstanding 4.591% Series 5 Preferred Shares on March 31, 2025, at $25 per share. The total aggregate amount of $200 million will be funded primarily from cash on hand.
L1 Capital stated the following about Cenovus Energy Inc. (NYSE:CVE) in its Q3 2024 investor letter:
“Cenovus Energy Inc. (NYSE:CVE) (Long -15%) and MEG Energy (Long -13%) shares fell as the WTI oil price decreased 17% to ~US$69/bbl on the back of increased concerns around a potential increase in OPEC supply along with slower global economic growth. Despite OPEC delaying a previously planned increase in oil output, the oil price continued to weaken due to the weaker demand outlook. During the quarter, we attended the Peters & Co oil and gas conference in Toronto, meeting one-on-one with management from Cenovus and MEG Energy, along with the entire peer group. We continue to favor Cenovus and MEG in the sector due to their strong cash flow generation, the long-life nature of their oil sands assets, low cost of production and strong balance sheets. Both Cenovus and MEG have now transitioned to returning 100% of free cash flow back to shareholders, having reached their respective net debt targets. As a result, we see both names offering sector leading shareholder returns, combined with some modest, accretive output growth.”
8. Patterson-UTI Energy, Inc. (NASDAQ:PTEN)
Number of Billionaire Holders: 13
Dividend Yield as of March 28: 3.82%
Patterson-UTI Energy, Inc. (NASDAQ:PTEN) is a leading provider of drilling and completion services to oil and natural gas exploration and production companies in the United States and other select countries. PTEN is among the best dividend stocks on our list.
Patterson-UTI Energy, Inc. (NASDAQ:PTEN) had a tough Q4 2024, as its EPS of -$0.13 missed estimates by $0.03. The company’s revenue of $1.2 billion was also down by 24.1% YoY and fell short of expectations by $50 million. PTEN generated an operating cash flow of $1.2 billion in 2024, and its full-year adjusted free cash flow came in at $523 million. It returned $417 million of it to its shareholders last year, reducing its total share count by more than 6%. The company also paid a cumulative dividend equal to 4% of its current market cap and reduced its net debt, including leases, by almost $100 million. PTEN still had $759 million in remaining share repurchase authorization at the end of 2024, and it declared a quarterly dividend of $0.08 per share in February.
Patterson-UTI Energy, Inc. (NASDAQ:PTEN) expects capital expenditures to be about $600 million in 2025 as it continues to strategically invest in technology across all its businesses to build on its competitive advantage. Moreover, it remains committed to returning at least 50% of its adjusted free cash flow to investors through dividends and share repurchases.
7. Valero Energy Corporation (NYSE:VLO)
Number of Billionaire Holders: 14
Dividend Yield as of March 28: 3.39%
Next on our list of the Best Oil and Gas Dividend Stocks is Valero Energy Corporation (NYSE:VLO), 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) topped forecasts in Q4 2024, as its adjusted EPS of $0.64 was significantly above the estimate of $0.06. Its revenue of $30.76 billion also surpassed expectations by $740 million. However, both its earnings and revenue declined significantly YoY, highlighting the ongoing challenges in the refining sector. Refining, Valero’s largest segment, reported only $437 million of operating income compared to $1.6 billion in the fourth quarter of 2023. Still, the company continued to honor its commitment to shareholder returns with a strong payout ratio of 78% for the year 2024.
Valero Energy Corporation (NYSE:VLO) returned $4.3 billion to stockholders last year, and since the start of 2021, the refining giant has delivered over $4 billion of debt reduction and returned approximately $18.7 billion to stockholders through dividends and share buybacks. The company approved a 6% increase in the quarterly cash dividend in January, further demonstrating its strong financial position.
6. Duke Energy Corporation (NYSE:DUK)
Number of Billionaire Holders: 14
Dividend Yield as of March 28: 3.55%
Duke Energy Corporation (NYSE:DUK) engages in the distribution of natural gas and energy-related services. The company’s electric utilities serve 8.4 million customers across six states, while its natural gas utilities provide gas to 1.7 million customers across five states in the US.
Duke Energy Corporation (NYSE:DUK) reported an adjusted EPS of $1.66 in Q4 2024, slightly above market expectations by $0.01. However, the company’s revenue of $7.36 billion fell short of estimates by $294.31 million. Duke suffered badly due to the Hurricanes Debby, Milton, and Helene, with the total cost to restore its facilities in the range of $2.4 billion-$2.6 billion. However, income from the company’s electric and gas segments in Q4 rose 5% YoY overall to around $1.4 billion. Duke Energy declared a quarterly cash dividend of $1.045 per share, making 2025 the 99th consecutive year of paying a quarterly cash dividend for the company.
Duke Energy Corporation (NYSE:DUK) recently raised its five-year capital expenditure plan by 13.7% to $83 billion, accommodating for the surging demand due to population growth and the expansion of data centers and advanced manufacturing. The company expects to issue $6.5 billion of equity over the duration of the plan, including $1 billion in 2024, as it plans to fund roughly 40% of the increase in its capital plan with equity.
5. Shell plc (NYSE:SHEL)
Number of Billionaire Holders: 14
Dividend Yield as of March 28: 3.79%
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. As a result, the oil and gas giant’s adjusted EPS of $1.18 fell below expectations by $0.31, and its quarterly revenue of $66.28 billion also missed estimates by over $5.5 billion. Despite the tough business environment, Shell generated an operating cash flow of $54.7 billion and a free cash flow of $39.5 billion for the full year 2024. It distributed $22.6 billion to its shareholders during the year, representing 41% of its total free cash flow. Moreover, the company’s continued focus on simplification helped to deliver over $3 billion in structural cost reductions since 2022, meeting its target ahead of schedule.
In January, Shell plc (NYSE:SHEL) announced a 4% increase in its dividends and another $3.5 billion buyback program, making this the 13th consecutive quarter of at least $3 billion of buybacks. According to analysts at Barclays, Shell may increase its dividend by 10%-20% as early as 2026 while keeping its $14 billion share buyback program intact through this year.
4. Chevron Corporation (NYSE:CVX)
Number of Billionaire Holders: 14
Dividend Yield as of March 28: 4.1%
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 revenue surged by 10.7% YoY to $52.23 billion in Q4 2024, as the industry giant increased its worldwide and US production by 7% and 19%, respectively, to record levels last year. However, the company’s adjusted EPS of $2.06 narrowly missed expectations by $0.05 as weak margins dragged its refining business into a loss for the first time in the last four years.
Chevron Corporation (NYSE:CVX) maintains a robust balance sheet and generated $31.5 billion in operating cash flow and $15 billion in free cash flow in FY 2024, ending the year with a net debt ratio of 10%. The oil and gas 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, maintaining a 38-year streak of consistent dividend growth, which makes it one of the best dividend stocks in the oil and gas sector.
It was revealed earlier this month that Chevron Corporation (NYSE:CVX) has acquired a 4.99% stake in Hess Corp since the start of the year, reflecting its confidence in completing the planned acquisition of Hess, which it agreed to back in October 2023.
CVX was also included in our list of the 25 Best Dividend Stocks to Buy According to Billionaires.
3. Canadian Natural Resources Limited (NYSE:CNQ)
Number of Billionaire Holders: 14
Dividend Yield as of March 28: 5.29%
Canadian Natural Resources Limited (NYSE:CNQ) is a senior crude oil and natural gas production company with continuing operations in its core areas located in Western Canada, the UK portion of the North Sea, and Offshore Africa.
Canadian Natural Resources Limited (NYSE:CNQ) reported strong results for 2024, achieving a record annual average production of over 1.36 million boed, including a record annual liquids production of over one million barrels per day. The company generated an adjusted funds flow of $14.9 billion during the year and returned approximately $7.1 billion to shareholders in the form of dividends and share repurchases. CNQ increased its quarterly dividend twice in 2024, and subsequent to year-end, the company’s board approved a 4% increase to $2.35 per common share annualized. 2025 is the 25th consecutive year of dividend increases by Canadian oil and gas giant, with a CAGR of 21% during the period. CNQ is one of the best dividend stocks to monitor.
Canadian Natural Resources Limited (NYSE:CNQ) has recently expanded its footprint through a series of strategic acquisitions, capitalizing on opportunities to enhance its future cash flow. Through a recently announced asset-swap deal with Shell and the $6.5 billion acquisition of Chevron’s Alberta assets at the end of 2024, CNQ is set to become the sole owner of the Albian Mines in northeastern Alberta’s oilsands, adding a total of more than 93,000 barrels a day of production to its portfolio.
2. ConocoPhillips (NYSE:COP)
Number of Billionaire Holders: 16
Dividend Yield as of March 28: 3.03%
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) had a strong Q4 2024 as its adjusted EPS of $1.98 beat expectations by $0.15. The company’s revenue of $14.74 billion also topped estimates by almost $515 million, despite being down 3.72% YoY. COP’s output has witnessed a sharp increase following its acquisition of Marathon Oil last year, which added high-quality, low-cost supply inventory to its portfolio. As a result, the company’s production rose 14.8% YoY to 2.183 million boed in Q4 2024.
ConocoPhillips (NYSE:COP) generated $20.3 billion in cash from operations in 2024 and returned $9.1 billion to its shareholders, representing 45% of CFO and well above its 30% commitment. Following a 34% increase in October, the company’s quarterly dividend now stands at $0.78 per share. ConocoPhillips has grown its dividend for 10 consecutive years and targets returns of $10 billion in 2025, including $6 billion in buybacks.
COP was recently included in our list of the 7 Most Undervalued Dividend Stocks to Buy According to Hedge Funds.
1. Exxon Mobil Corporation (NYSE:XOM)
Number of Billionaire Holders: 16
Dividend Yield as of March 28: 3.36%
Topping our list of the Best Oil and Gas Dividend Stocks to Buy 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 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. The company achieved record production in Permian and Guyana and record sales volumes of high-value products in FY 2024. Moreover, its Q4 adjusted EPS of $1.67 also topped expectations by $0.12. Exxon has grown its earnings at an annual rate of roughly 30% over the last five years, while its cash flow has risen at a CAGR of about 15%. The oil and gas giant estimates it can add a further $20 billion in earnings and $30 billion in cash flow by the end of the decade.
Exxon Mobil Corporation (NYSE:XOM) has been paying regular dividends to shareholders for 143 years, firmly locking its place among the 15 Dividend Zombies to Invest in. The oil major has distributed over $125 billion in dividends and buybacks only in the last five years and also recently announced plans to repurchase $20 billion in shares annually through 2026.
Overall, Exxon Mobil Corporation (NYSE:XOM) ranks first on our list of the best oil and gas dividend stocks according to billionaires. While we acknowledge the potential for XOM 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 XOM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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