In this article, we are going to discuss the 12 hot oil stocks to buy according to hedge funds.
The United States of America is currently producing more oil and gas than any other country in the history of the world, with no signs of a slowdown. The country’s oil production has surged by almost 50% in the last ten years, reaching just over 13.45 million barrels per day in October 2024.
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These numbers could now pump even higher after President Donald Trump has held up the oil industry as a centerpiece of his broader economic mission, with claims that ‘we will drill, baby, drill’. The president has also signed executive orders declaring a national energy emergency and withdrawing from the landmark 2015 Paris climate agreement, the international pact to fight global warming. Trump has also swept aside the freeze on LNG export permits and signed orders to promote oil and gas development in Alaska, though the industry is unlikely to expand there anytime soon.
These aggressive steps have raised concerns of higher US output in a market that is already widely expected to be oversupplied this year. As per the International Energy Agency’s recent market outlook, growth in the global demand for oil is expected to slow down in the coming years as energy transitions advance, putting downward pressure on prices. The US Energy Information Administration stated earlier this month that it expects Brent crude oil prices to fall 8% to average $74 a barrel in 2025, then fall further to $66 a barrel in 2026.
So it still remains to be seen whether the US oil majors will answer the President’s call and shell out the big bucks required to heavily boost their production. Instead, companies appear to have shifted their focus from aggressive growth to keeping their shareholders happy through fat dividends and generous share buybacks. Despite the falling oil prices, more and more fossil fuel companies are returning a bigger chunk of their profits to shareholders, signaling a clear priority shift away from reinvestment in oilfield development. Several oil bigwigs have even resorted to borrowing to make sure they leave their shareholders satisfied, as revealed by Bloomberg that four of the world’s five oil ‘supermajors’ saw fit to borrow $15 billion to fund share buybacks between July and September 2024.
Therefore, according to a recent survey by the Federal Reserve Bank of Dallas, only 14% of oil and gas executives plan to significantly increase capital spending this year, while more of them have plans to cut spending instead of ramping it up. But this doesn’t mean that America’s oil and gas sector doesn’t stand to win with Donald Trump in the Oval Office, especially since it poured more than $75 million in donations to his campaign. The American Petroleum Institute, the most powerful oil lobby in the United States, has outlined a wishlist of 70 policy actions it is seeking from Republicans, including issuing a new 5-year offshore leasing program and repealing environmental standards on vehicle emissions.
With that said, here are the Hottest Oil Stocks to Buy Now.
A row of massive oil rigs in a desert landscape, against a setting sun.
Methodology:
To collect data for this article, we used a stock screener to pick oil stocks that have gained over 20% in the last 12 months, as of the close of January 18, 2024. From this group, we picked the 12 companies with the highest number of hedge fund investors, according to Insider Monkey’s database of Q3 2024. The stocks are arranged in ascending order of the number of hedge funds invested in them. Following are the Hottest Oil Stocks to Buy According to Hedge Funds.
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12. U.S. Energy Corp. (NASDAQ:USEG)
Gain Over Past 12 Months: 116.82%
Number of Hedge Fund Holders: 1
U.S. Energy Corp. (NASDAQ:USEG) is an independent company that identifies and strategically invests in upstream oil and gas assets with a primary focus on oil. For Q3 of 2024, oil accounted for 58% of the company’s total production, with the remainder consisting of a balanced mix of natural gas and natural gas liquids (NGLs).
U.S. Energy Corp. (NASDAQ:USEG) has also been involved in helium production and announced a significant helium discovery in Montana in October 2024, enhancing the company’s economic potential. Moreover, while most of the helium production in the country is hydrocarbon-based largely as a byproduct of natural gas extraction, the helium and industrial gas streams from U.S. Energy’s new assets are non-hydrocarbon-based, positioning this project as one of the lowest environmental footprint initiatives of its kind in the United States.
U.S. Energy Corp. (NASDAQ:USEG) also announced earlier this month that it has closed the acquisition of operated acreage targeting helium and other industrial gas production across the Kevin Dome structure in Toole County, Montana. The move strengthens the company’s ability to provide reliable, clean, and domestically sourced industrial gases.
U.S. Energy Corp. (NASDAQ:USEG) had a tough Q3 2024 as it reported a revenue of $4.96 million, down almost 43.4% YoY and missing the analysts’ estimates by $859,500. The decline was attributed to a reduction in volumes, caused also due to the divestiture of the company’s South Texas properties in July 2024. However, it must be noted that as of the end of Q3 2024, U.S. Energy had no outstanding debt and maintained a strong liquidity position, with a $20 million credit facility and $1.2 million in cash.
Thanks to its debt-free position, strong balance sheet, robust asset base, and solid cash flow from legacy operations, U.S. Energy Corp. (NASDAQ:USEG) has gained increasing investor confidence in its potential for sustained growth, putting it among the Hot Oil Stocks to Buy Now.
11. Tortoise Energy Infrastructure Corporation (NYSE:TYG)
Gain Over Past 12 Months: 65.18%
Number of Hedge Fund Holders: 3
Tortoise Energy Infrastructure Corporation (NYSE:TYG) invests in energy infrastructure companies that generate, transport, and distribute electricity, as well as process, store, distribute, and market natural gas, NGLs, refined products, and crude oil.
It was announced in December 2024 that Tortoise Capital, a fund manager focused on energy investing, has completed a strategic merger between Tortoise Midstream Energy Fund and Tortoise Energy Infrastructure Corp. (NYSE:TYG) with TYG emerging as the continuing fund. As of December 31, 2024, the combined total assets under management (AUM) of Tortoise Energy Infrastructure Corporation was $992.7 million.
Aside from gaining 65% in share price over the last year, Tortoise Energy Infrastructure Corporation (NYSE:TYG) is also a great option for investors looking for a stable passive income, as the stock offers an attractive annual dividend yield of 7.9%. The company declared a monthly dividend of $0.365 in December 2024, up 40% from the prior quarterly dividend of $0.78 per share. It was announced that TYG has changed the frequency of distributions from quarterly to monthly, so the monthly dividend of $0.365 per share equates to $1.095 per share on a quarterly basis.
At the end of Q3 2024, 3 hedge funds in the IM database held a stake in Tortoise Energy Infrastructure Corp. (NYSE:TYG) with a total stake value of almost $21.44 million, up 2.7% from the previous quarter.
10. Crescent Energy Company (NYSE:CRGY)
Gain Over Past 12 Months: 53.46%
Number of Hedge Fund Holders: 22
Next on our list of Hot Oil Stocks to Buy Now is Crescent Energy Company (NYSE:CRGY), a differentiated US energy company with operations focused in Texas and the Rockies. The company also operates conventional assets in Wyoming, where it is active in carbon capture, use, and storage.
Crescent Energy Company (NYSE:CRGY) has adopted a proven and consistent strategy of growing profitably through acquisitions and driving operational efficiencies. A great example is how the company acquired its rival SilverBow last summer in a $2.1 billion deal to expand its position in the Eagle Ford, which is close to export facilities along the Gulf Coast. The move has paid off as the integration of the SilverBow business had already yielded approximately $65 million of annualized synergies by the end of Q3 2024. The company’s 2023 acquisitions in the Western Eagle Ford have also continued to drive strong free cash flow and yield approximately $70 million of annualized operational gains relative to the $850 million of combined purchase price.
Crescent Energy Company (NYSE:CRGY) is now further expanding its Eagle Ford portfolio and announced last month that it is acquiring Eagle Ford assets from Ridgemar Energy for upfront consideration of $905 million plus future oil price contingent consideration, subject to customary purchase price adjustments. These assets will contribute meaningful scale, enhance the oil and gas producer’s cash margins, increase its oil-weighting, and extend its low-risk inventory life, all at an attractive and highly accretive valuation.
Crescent Energy Company (NYSE:CRGY) had a solid Q3 2024 and reported record production of 219,000 barrels of oil equivalent per day, with only two months of contribution from SilverBow. The company reported a revenue of approx. $744.9 million during the quarter, up almost 16% YoY but still missing the analysts’ estimates by $33.18 million. Crescent Energy is actively working to drive down costs alongside operating efficiencies, which combined have already lowered well cost by 10% compared to the first half of 2024. During Q3 2024, the company also brought online 27 gross operated wells in the Eagle Ford and 10 gross operated wells in the Uinta, all of which are generating strong initial results.
Crescent Energy Company (NYSE:CRGY) maintains a strong balance sheet with $1.5 billion of liquidity with no near-term debt maturities. The company reported approximately $160 million in levered free cash flow in Q3 2024 and announced a quarterly dividend of $0.12 per share in November 2024, in addition to further repurchases under its active buyback program.
9. Magnolia Oil & Gas Corporation (NYSE:MGY)
Gain Over Past 12 Months: 35.36%
Number of Hedge Fund Holders: 28
Magnolia Oil & Gas Corporation (NYSE:MGY) is an independent oil producer with assets located in the Eagle Ford Shale and Austin Chalk formations in South Texas.
Magnolia Oil & Gas Corporation (NYSE:MGY)’s oil production during Q3 2024 was nearly 39,000 barrels per day, up 18% YoY. The company reported revenue of $333.14 million during the quarter, up 5.53% YoY and beating the analysts’ estimates by $7.31 million. Magnolia is also working to become more cost-efficient and spent $103 million drilling and completing wells during the third quarter, which is well below its capital guidance of $120 million. Moreover, the company’s implementation of field management software, which has reduced its cost for water hauling, will be further utilized to lower costs from other field services also into this year.
Magnolia Oil & Gas Corporation’s (NYSE:MGY) cost-saving measure led to improved free cash flow generation of $126 million during Q3 2024, allowing it to return $88 million or 70% of its free cash flow to shareholders through a combination of dividends and share repurchases. The company ended the quarter with $276.1 million of cash on the balance sheet and an undrawn revolving credit facility of $450 million. Magnolia further bolstered its financial stability by securing a $1.5 billion credit facility in November and announced plans for a private placement of $400 million in senior unsecured notes due 2032. The company has also recently appointed finance expert R. Lewis Ropp to its board of directors, a move that is expected to bring extensive financial expertise and industry insight to the table.
Diamond Hill Small Cap Fund stated the following regarding Magnolia Oil & Gas Corporation (NYSE:MGY) in its Q2 2024 investor letter:
“We continue finding attractively valued, resilient companies the market is overlooking amid its increasingly narrow focus on the mega-cap technology stocks dominating the major indices. In Q2, we initiated new positions in Magnolia Oil & Gas Corporation (NYSE:MGY), Thermon Group Holdings and Astrana Health.
Magnolia Oil & Gas is a small-cap exploration and production company based in the Eagle Ford shale region. The company has a strong and experienced management team with a disciplined capital-allocation framework, owner mindset and strong balance sheet. Further, the company’s low wellhead breakeven numbers and low debt levels make it an attractive, relatively lower-risk opportunity to gain exposure to the commodities cycle’s upside.”
8. Energy Transfer LP (NYSE:ET)
Gain Over Past 12 Months: 47.35%
Number of Hedge Fund Holders: 29
Energy Transfer LP (NYSE:ET) is one of the largest and most diversified midstream energy companies in North America with approximately 133,000 miles of pipelines transporting oil and gas products.
Energy Transfer LP (NYSE:ET) remains focused on expanding its transportation and processing footprint in the Permian basin and acquired WTG Midstream Holdings in a $3.25 billion deal last year. The company also announced the formation of a JV with Sunoco LP last summer, combining their respective crude oil and produced water gathering assets in the Permian Basin. These, combined with several other expansion projects to enter service this year, should supply ET with a healthy stream of incremental income in the coming quarters.
Energy Transfer LP (NYSE:ET) announced last month that its unit has entered a 20-year LNG sale and purchase agreement with oil and gas major Chevron, putting its long-delayed Lake Charles export terminal another step closer to becoming a reality. The company’s LNG business is also expected to significantly benefit from President Donald Trump’s recent order to reverse a pause on permits for new LNG projects that former President Joe Biden put in place in early 2024.
Energy Transfer LP (NYSE:ET) has also recently highlighted strong interest from power generation firms and data center operators in natural gas pipeline projects, driven by the surging power demands from the expansion of AI infrastructure. Moreover, to support its operations and increase system reliability, the company has started construction on eight 10-MW natural gas-fired electric generation facilities, which are expected to come online this year.
Energy Transfer LP (NYSE:ET) announced a quarterly dividend of $0.3225 per share in October 2024, marking the 12th consecutive quarterly dividend increase, and firmly placing it in our list of the Top 20 Dividend Stocks of 2024.
Patient Capital Management stated the following regarding Energy Transfer LP (NYSE:ET) in its Q3 2024 investor letter:
“Energy names disappointed in the quarter following commodity prices lower throughout the period. We took the opportunity to add to our highest conviction ideas. We look to names that have idiosyncratic opportunities and are attractive in a variety of different commodity price environments. Many see risk to energy prices over the next year as supply is expected to outstrip demand by 1.3mb/d even before assuming any incremental OPEC supply comes onto the market. With commodities, consensus is rarely right. We assess companies on through cycle returns and normalized prices. From this perspective, we see a handful of attractive opportunities, including Energy Transfer LP (NYSE:ET), Seadrill, and Kosmos.
Our ownership of Energy Transfer began in 2019 with the belief that the limited supply of new pipelines would provide attractive pricing opportunities over the long-term. At the same time, the company was paying us an attractive dividend (10% yield over the period). So far this investment thesis has largely played out, but we continue to see an attractive long-term setup for the name given our belief that natural gas will be a key ingredient to bridge us to a net carbon neutral world.”
7. ONEOK, Inc. (NYSE:OKE)
Gain Over Past 12 Months: 57.78%
Number of Hedge Fund Holders: 33
ONEOK, Inc. (NYSE:OKE) is one of the largest diversified energy infrastructure companies in the US, owning and operating an extensive network of NGLs, natural gas, refined products, and crude oil assets.
ONEOK, Inc. (NYSE:OKE) has completed several deals over the last couple of years, firmly placing it among the giants in the midstream sector and putting it in a strong position for continued future growth. The company’s recent acquisitions of EnLink Midstream and Medallion Gathering and Processing will help it enhance its natural gas and NGLs infrastructure and provide significant growth potential.
ONEOK, Inc. (NYSE:OKE) also recently sold three of its wholly owned interstate natural gas pipeline systems to DT Midstream for $1.2 billion in cash, which will help strengthen its balance sheet after the recent shopping spree and recycle capital into EnLink and Medallion, which are more core to its business.
In Q3 of 2024, ONEOK, Inc. (NYSE:OKE) witnessed continued strength in the Rocky Mountain region, increased transportation services in the Natural Gas Pipeline segment, and a full quarter contribution from the refined products and crude segment. Its total refined products also achieved volumes of nearly 1.6 million barrels per day, a new record. As a result, the company reported a net income of $693 million or $1.18 per share in the third quarter of 2024. With a 5-year net income CAGR of over 17%, ONEOK, Inc. (NYSE:OKE) was included in our list of the Most Profitable Natural Gas Stocks to Invest In.
6. Antero Resources Corporation (NYSE:AR)
Gain Over Past 12 Months: 82.99%
Number of Hedge Fund Holders: 39
Antero Resources Corporation (NYSE:AR) is an independent oil and gas company that acquires, explores, develops, and produces natural gas, NGLs, and oil in the Appalachian Basin.
Antero Resources Corporation (NYSE:AR) has recently witnessed significant developments in its financial strategy. The company reported a 22% reduction in drilling time and an 8% decrease in total well costs for Q3 of 2024. It also reduced its drilling and completion capital budget to $650 million for 2024, a 28% decrease from 2023, while holding production flat. AR’s ability to maintain production while reducing capital spend is a significant achievement in the capital-intensive fossil fuel industry.
Antero Resources Corporation’s (NYSE:AR) export business also seems to be going well, thanks to its unconstrained access to international markets via the Marcus Hook liquids terminal, as well as its strategic decision last year to increase its exposure to spot international prices. The company reported average export volumes of over 1.7 million barrels a day for the first nine months of 2024, setting up for another record export year. Since 2021, exports have increased by 46%, driven by resilient international demand, particularly from Asia.
Antero Resources Corporation (NYSE:AR) is also benefiting greatly from the rising spot demand for America’s LNG, with the country being a competitive low-cost provider. Almost 75% of the company’s gas volumes are sold to markets on the Gulf Coast, providing it with direct exposure to the rising LNG export trend.
Shares of Antero Resources Corporation (NYSE:AR) were held by 39 hedge funds in the IM database at the end of Q3 2024, with Sourcerock Group holding the largest stake of over 6.12 million shares, valued at $175.47 million.
5. Kinder Morgan, Inc. (NYSE:KMI)
Gain Over Past 12 Months: 72.61%
Number of Hedge Fund Holders: 42
Coming at number 5 on our list of Hot Oil Stocks to Invest in is Kinder Morgan, Inc. (NYSE:KMI), the largest independent transporter of petroleum products in North America, transporting approximately 2.4 million barrels per day. The company’s pipelines transport natural gas, gasoline, crude oil, carbon dioxide, and more.
Kinder Morgan, Inc. (NYSE:KMI) continues to expand and bring newly acquired assets into its business. The company’s 2023 acquisition of STX midstream is already bearing fruit and earlier this month, it also struck a deal with Outrigger Energy to acquire natural gas gathering and processing assets in North Dakota for $640 million. Notably, Kinder Morgan’s project backlog increased by 70% to $5.1 billion during the first nine months of 2024, a clear indicator of expanding industrial and energy capacity, which has broader economic implications. As more and more of these projects come online, the company is expected to report bigger cash flow and higher dividends.
In contrast to many other energy companies which depend heavily on fluctuating energy prices, Kinder Morgan, Inc. (NYSE:KMI) has a policy of tying a vast majority of its customers into long-term contracts with fixed prices, giving relative stability to its cash flow and earnings and helping it plan its long-term future investments more accurately.
On October 16, 2024, Kinder Morgan, Inc. (NYSE:KMI) announced a quarterly dividend of $0.2875 per share, and as its new assets get integrated, the company remains confident that it will increase the dividend for the eighth consecutive year also in 2025.
Kinder Morgan, Inc. (NYSE:KMI) was also included in our list of the 10 Top Performing Dividend Stocks of 2024.
4. Baker Hughes Company (NASDAQ:BKR)
Gain Over Past 12 Months: 51.15%
Number of Hedge Fund Holders: 45
Baker Hughes Company (NASDAQ:BKR) is a supplier of oilfield services, products, technology, and systems to the worldwide oil and natural gas industry. The company conducts business in 120 countries around the globe and while its vast geographical footprint allows it to capitalize on more opportunities, it also exposes the energy technology company to various geopolitical risks such as political instability, trade disputes, or unfavorable regulatory changes in key markets.
Baker Hughes Company (NASDAQ:BKR) boasts a 40-year track record in the LNG industry and is expected to benefit tremendously from the expanding LNG infrastructure in the US. Just recently, the company announced that it has received an order from Bechtel Energy to supply gas technology equipment for two liquefaction plants for the first phase of Woodside Energy Group Ltd’s Louisiana LNG development opportunity.
Baker Hughes Company (NASDAQ:BKR) had a strong Q3 2024 as it reported another record quarterly EBITDA of over $1.2 billion and the third consecutive quarter of at least 20% YoY EBITDA growth. Moreover, the company continued to improve its EBITDA margins at an accelerated pace, increasing to 17.5%, which marked the highest margin quarter since 2017. BKR’s total company orders also remained at solid levels during the quarter, including $2.9 billion for its IET segment.
Baker Hughes Company (NASDAQ:BKR) continues to make strides in the fast-growing new energy business and the company booked orders of $971 million during the first nine months of 2024, anticipating to exceed the $1 billion mark by the end of the year. This marked a significant improvement from the $750 million in new energy orders that Baker Hughes received in 2023.
Baker Hughes Company (NASDAQ:BKR) maintains a strong balance sheet and ended its Q3 2024 with $2.7 billion in cash and $5.7 billion in total liquidity. The company generated $754 million in free cash flow during the third quarter and returned $361 million to shareholders, including $209 million of dividends and $152 million of share repurchases.
3. EOG Resources, Inc. (NYSE:EOG)
Gain Over Past 12 Months: 21.3%
Number of Hedge Fund Holders: 46
EOG Resources, Inc. (NYSE:EOG) explores, develops, produces, and markets natural gas and crude oil. Founded in 1985, the company has operations in the US, Canada, the UK, Trinidad, China, and other international segments.
One of the most appealing aspects of EOG Resources, Inc. (NYSE:EOG) is its robust balance sheet. While the E&P sector is known for carrying high levels of debt, EOG is known to manage its debt levels very efficiently and return significant value to its shareholders. Over the last four years, the company has generated more than $22 billion in free cash flow and more than $25 billion in adjusted net income. The oil and gas producer also increased its regular dividend rate by 160% during the period and has paid or committed to pay more than $13 billion directly to shareholders through dividends and $3.2 billion indirectly through share repurchases, all while also reducing debt by 35%.
EOG Resources, Inc. (NYSE:EOG) has never reduced or suspended its regular dividends since it started paying them 27 years ago. The company has also recently announced plans to potentially return 100% or more of its free cash flow to shareholders in the near to medium term. EOG boosted its share buyback program by $5 billion at the end of Q3 2024 after beating profit estimates and stated that it would raise its debt balance to a range of $5 to $6 billion in the next 12 to 18 months, which would make additional cash available for investor payouts.
EOG Resources, Inc. (NYSE:EOG) is also well-positioned to take advantage of the growing gas demand in the US. The company’s Janus gas plant in the Delaware Basin is expected to be completed this year, while its Verde pipeline is already online, allowing EOG to access the Gulf Coast market.
Shares of EOG Resources, Inc. (NYSE:EOG) were held by 46 hedge funds in the IM database at the end of Q3 2024, with a total stake value of $836.45 million, up 45.2% from the previous quarter.
2. Diamondback Energy, Inc. (NASDAQ:FANG)
Gain Over Past 12 Months: 20.3%
Number of Hedge Fund Holders: 49
Diamondback Energy, Inc. (NASDAQ:FANG) is a Texas-based independent oil and natural gas company, focused on the acquisition, development, exploration, and exploitation of unconventional, onshore oil and natural gas reserves in the Permian Basin in West Texas.
Diamondback Energy, Inc. (NASDAQ:FANG) further expanded its footprint in the Permian Basin after the completion of its $26 billion merger with Endeavor Energy Resources in September 2024. The strategic move is anticipated to result in a more capital-efficient program this year and the newly combined entity is expected to produce over 816,000 barrels of oil equivalent (BOE) per day.
Diamondback Energy, Inc. (NASDAQ:FANG) had a strong Q3 2024 as it reported a revenue uptick of 13%, driven by higher production volumes following the merger and an increase in oil sales. However, earlier this month, the company flagged a 5% drop in average realized price for its oil production in the fourth quarter, weighed down by a patchy post-pandemic demand recovery, China’s sluggish economy, and excess global supply.
Diamondback Energy, Inc. (NASDAQ:FANG) reported a free cash flow of $708 million in Q3 2024 and declared a quarterly dividend of $0.9 per share. The company has witnessed an industry-leading average quarterly dividend growth of 8% since its introduction in 2018. Moreover, Diamondback has also increased its share repurchase authorization to $6 billion, demonstrating a commitment to returning value to shareholders.
Chartwell Investment Partners, LLC, said the following about Diamondback Energy, Inc. (NASDAQ:FANG) in its Q3 investment letter:
“Diamondback Energy, Inc. (NASDAQ:FANG) is an exploration and production company with operations focused on the Mid-land and Delaware basins, both located within the Permian Basin in West Texas and southeastern New Mexico. While fundamental performance remains solid, shares were pressured by lower oil prices.”
1. Permian Resources Corporation (NYSE:PR)
Gain Over Past 12 Months: 23.36%
Number of Hedge Fund Holders: 56
Topping our list of Hot Oil Stocks To Buy According to Hedge Funds is Permian Resources Corporation (NYSE:PR), an independent oil and natural gas company focused on driving sustainable returns through the responsible acquisition, optimization, and development of high-return oil and natural gas properties.
Permian Resources Corporation (NYSE:PR) further bolstered its presence in the Permian Basin with the acquisition of Barilla Draw assets in Q3 2024, with the deal expected to boost the company’s output by about 24,000 barrels of oil equivalent per day. It would also add about 27,500 net acres to the PR’s footprint in the largest shale oil belt in the world. Additionally, it was recently announced that Permian Resources has agreed to divest its natural gas and oil gathering systems in the Delaware sub-basin of West Texas to Kinetik Holdings for a hefty sum of $180 million, allowing the fossil fuel company to return its focus to its exploration and production work and letting it proceed with development of the Barilla Draw assets.
One of Permian Resources Corporation (NYSE:PR)’s most significant developments has been the reduction in drilling and completion days per well, leading to substantial cost reductions and helping improve the company’s profitability. In Q3 of 2024, PR reduced its drilling and completion costs by 16% YoY, while also achieving a 16% YoY reduction in drilling cycle times and a 19% YoY increase in completion crew pump hours per day.
Permian Resources Corporation (NYSE:PR) is also one of the largest natural gas producers in the Permian Basin, producing approximately 600 million cubic feet per day of residue gas. This puts the company in a great position to cater to the rising LNG exports and also creates the potential for significant upside to free cash flow generation if natural gas prices improve going forward, as is widely expected.
Aristotle Capital Boston, LLC, stated the following about Permian Resources Corporation (NYSE:PR) in its Q3 investment letter:
“Permian Resources Corporation (NYSE:PR) is a Texas-based oil & gas exploration & production company with a large acreage position and deep inventory of high return potential drilling locations in the core of the Permian Basin. We expect management to continue to execute on its strategy of optimizing returns, diligently allocating capital to new opportunities, and returning excess capital to shareholders.”
Overall PR ranks first on our list of the hot oil stocks to buy according to hedge funds. While we acknowledge the potential for PR as an investment, 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 PR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stock To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap
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