13 Best Natural Gas and Oil Dividend Stocks To Buy

2. ConocoPhillips (NYSE:COP)

Number of Hedge Fund Holders: 66

Dividend Yield: 3.12%

ConocoPhillips (NYSE:COP) is one of the world’s largest independent E&P companies based on oil and natural gas production and proved reserves. The company also has a long history in the LNG sector and is well-positioned to capitalize on the rapid growth of US LNG exports.

ConocoPhillips (NYSE:COP) had a strong Q4 2024, substantially raising its production by 14.8% YoY to 2,183 thousand barrels of oil equivalent per day. This surge was especially boosted by the $22.5 billion acquisition of Marathon in late November, which added high-quality, low-cost supply inventory to its portfolio. The company reported a revenue of $14.7 billion, down 3.72% YoY but still beating analysts’ estimates by over $514 million. Q4 EPS was reported at $1.98, beating Wall Street estimates as higher production helped offset lower crude prices. To strengthen its balance sheet following the mega acquisition of Marathon, ConocoPhillips announced that it is making solid progress on its planned $2 billion of asset sales, and has agreements in place to sell non-core lower 40 assets for approximately $600 million before customer adjustments in the first half of 2025.

ConocoPhillips (NYSE:COP) generated $20.3 billion in cash from operations in 2024 and returned $9.1 billion to its shareholders in the form of share buybacks and dividends. The company has also declared its ordinary dividend of $0.78 per share for Q1 of 2025 and announced that it plans to return $10 billion to its shareholders this year.