5 Best Gas Stocks To Buy Now

In this article, we discuss 5 best gas stocks to buy now. If you want to see more stocks in this selection, check out 11 Best Gas Stocks To Buy Now. 

5. Pioneer Natural Resources Company (NYSE:PXD)

Number of Hedge Fund Holders: 49

Pioneer Natural Resources Company (NYSE:PXD) is an independent oil and gas exploration and production company in the United States, with operations in the Midland Basin in West Texas. The company explores for, develops, and produces oil, natural gas liquids, and gas. Pioneer Natural Resources Company (NYSE:PXD) declared on October 27 a $5.71 per share quarterly dividend. The dividend is distributable on December 15, to shareholders of record on November 30. The dividend yield on November 28 came in at 10.25%. 

On November 17, Piper Sandler analyst Mark Lear raised the price target on Pioneer Natural Resources Company (NYSE:PXD) to $347 from $346 and maintained an Overweight rating on the shares. The analyst updated his exploration and production models and fiscal 2023 outlook following the Q3 results.

Among the hedge funds tracked by Insider Monkey, 49 funds reported owning stakes worth $851.4 million in Pioneer Natural Resources Company (NYSE:PXD) at the end of Q3 2022, compared to 56 funds in the last quarter worth $696 million. Andrew Weiss’ Weiss Asset Management is the leading position holder in the company, with 1.2 million shares worth $273.5 million. 

Here is what Carillon Scout Mid Cap Fund has to say about Pioneer Natural Resources Company (NYSE:PXD) in its Q1 2022 investor letter:

“Pioneer Natural Resources (NYSE:PXD) performed well in a strong energy sector. Pioneer stood out recently with a pledge to return a large majority of free cash flow to shareowners through dividends and stock buybacks, and ended hedging to give shareowners more earnings and dividend potential should oil and gas prices continue to rise.”

4. Marathon Petroleum Corporation (NYSE:MPC)

Number of Hedge Fund Holders: 50

Marathon Petroleum Corporation (NYSE:MPC) operates as an integrated downstream energy company primarily in the United States. In addition to providing reformulated gasolines and blend-grade gasolines, the company gathers, processes, and transports natural gas and natural gas liquids. It is one of the premier energy stocks to invest in. 

On November 1, Marathon Petroleum Corporation (NYSE:MPC) declared a $0.75 per share quarterly dividend, a 29.3% increase from its prior dividend of $0.58. The dividend is payable on December 12, to shareholders of record on November 16. 

Wells Fargo analyst Roger Read on November 3 raised the price target on Marathon Petroleum Corporation (NYSE:MPC) to $131 from $116 and reiterated an Overweight rating on the shares. While Q4 results may be weaker due to greater planned turnaround activity, the analyst still sees significant upside potential. 

According to Insider Monkey’s data, 50 hedge funds were long Marathon Petroleum Corporation (NYSE:MPC) at the end of the third quarter of 2022, and Paul Singer’s Elliott Management held the biggest stake in the company, comprising 11 million shares worth over $1 billion. 

Here is what Clark Street Value has to say about Marathon Petroleum Corporation (NYSE:MPC) in its Q4 2021 investor letter:

“During the worst of covid, I bought some LEAPs on Marathon Petroleum (MPC) as a proxy for Par Pacific (PARR) since long dated options weren’t available on the later.  Those MPC calls expire next month and I’ll take profits, with PARR I’ve reduced my position throughout the year and might sell the rest early next year, I’ve owned it for 6-7 years and it has gone nowhere, they haven’t touched the NOLs, just a difficult business that I probably don’t understand as well as I should.”

3. Devon Energy Corporation (NYSE:DVN)

Number of Hedge Fund Holders: 51

Devon Energy Corporation (NYSE:DVN) is an Oklahoma-based independent energy company, primarily engaged in the exploration, development, and production of oil, natural gas, and natural gas liquids in the United States. On November 1, Devon Energy Corporation (NYSE:DVN) posted a Q3 non-GAAP EPS of $2.18 and a revenue of $5.43 billion, outperforming Wall Street estimates by $0.05 and $640 million, respectively. Due to recent acquisitions, Devon Energy Corporation (NYSE:DVN) revised its production forecast higher in the fourth quarter to a range of 640,000 to 660,000 Boe per day, a 6% increase compared to the prior-year quarter.

On November 22, Citi analyst Scott Gruber maintained a Buy rating on Devon Energy Corporation (NYSE:DVN) but trimmed the firm’s price target on the shares to $78 from $80 following the Q3 results.

According to Insider Monkey’s data, 51 hedge funds were bullish on Devon Energy Corporation (NYSE:DVN) at the end of September 2022, compared to 57 funds in the prior quarter. Rajiv Jain’s GQG Partners is the largest stakeholder of the company, with 10.6 million shares worth about $642 million. 

GoodHaven Capital Management released its second-quarter 2022 investor letter and mentioned Devon Energy Corporation (NYSE:DVN). Here is what it said:

“Our biggest dollar gainer within this period was Devon Energy Corporation (NYSE:DVN), a position which emanated from a takeover in early 2021 of our long time holding WPX Energy. We are sitting on a material (unrealized) gain from our cost and are now receiving material dividends thanks to Devon’s thoughtful fixed/variable dividend policy. Energy is now a hot sector for investors but we have had a material exposure for a long time. We remember a bit too well $40 oil, NEGATIVELY PRICED front-month oil contract, and what it’s like to own a company with leverage and negative free cash flow during such periods. Our desire to have our biggest portfolio exposures be high return, growing, reasonably predictable and moderately levered companies lead us to reduce our Devon exposure in the past. When the recent facts and circumstances for the industry changed and appeared supportive of healthy oil prices, we decided to maintain a sizable holding and more recently added to the position. At Devon’s Q1 dividend rate, which is mostly variable in nature, the shares now yield approximately 10% and our yield on our average cost is materially higher. In addition, we maintain additional energy exposure through our long-term (and successful) holding in Hess Midstream and less directly through TerraVest and Berkshire Hathaway’s energy investments.”

2. EOG Resources, Inc. (NYSE:EOG)

Number of Hedge Fund Holders: 52

EOG Resources, Inc. (NYSE:EOG) is a Texas-based company that explores for, develops, produces, and markets crude oil, natural gas, and natural gas liquids. Its primary producing areas are in New Mexico, Texas, and the Republic of Trinidad and Tobago. On November 3, EOG Resources, Inc. (NYSE:EOG) declared a $0.825 per share quarterly dividend, a 10% increase from its prior dividend of $0.750. The dividend is distributable on January 31, 2023 to shareholders of record on January 17. Also, the company declared a special dividend of $1.50 per share, which is payable on December 30. 

On November 22, Citi analyst Scott Gruber raised the price target on EOG Resources, Inc. (NYSE:EOG) to $160 from $150 and maintained a Buy rating on the shares following the Q3 results.

According to Insider Monkey’s data, 52 hedge funds were bullish on EOG Resources, Inc. (NYSE:EOG) at the end of Q3 2022, compared to 43 funds in the last quarter. Harris Associates held the leading stake in the company, with more than 7 million shares worth $787.4 million. 

Here is what Oakmark Select Fund has to say about EOG Resources, Inc. (NYSE:EOG) in its Q1 2022 investor letter:

“EOG Resources (NYSE:EOG) (+36%), was among our top contributors in the quarter as oil prices rallied due to tight supplies, which were then exacerbated by the Russian invasion of Ukraine. Although their share prices have increased considerably, both companies still look quite undervalued even using longer term oil prices in the $65-70 dollar range. Meanwhile, if times are good over the next couple of years, we expect these companies to return significant percentages of their market caps to shareholders.”

1. ConocoPhillips (NYSE:COP)

Number of Hedge Fund Holders: 64

ConocoPhillips (NYSE:COP) is a Texas-based company that explores for, produces, transports, and markets crude oil, bitumen, natural gas, liquefied natural gas, and natural gas liquids worldwide. It is one of the best energy stocks to invest in. On November 3, ConocoPhillips (NYSE:COP) declared a $0.51 per share quarterly dividend, a 10.9% increase from its prior dividend of $0.46. The dividend is payable on December 1, to shareholders of record on November 15. The company also announced a $20 billion increase in share buybacks, taking the existing share repurchase program to $45 billion. This is consistent with ConocoPhillips (NYSE:COP)’s plan for future share repurchases.

On November 22, Citi analyst Alastair Syme raised the price target on ConocoPhillips (NYSE:COP) to $160 from $132 and kept a Buy rating on the shares. The market rotation into energy equities has “further to run, even though names in our US coverage already sit at all-time highs,” the analyst told investors. History indicates that energy stocks usually perform well in an earnings recession, wrote the analyst.

According to Insider Monkey’s data, 64 hedge funds were bullish on ConocoPhillips (NYSE:COP) at the end of September 2022, compared to 71 in the prior quarter. Ric Dillon’s Diamond Hill Capital held a prominent stake in the company, with 6.3 million shares worth $646.6 million.  

ClearBridge Investments made the following comment about ConocoPhillips (NYSE:COP) in its Q3 2022 investor letter:

“ConocoPhillips (NYSE:COP) handily outperformed the energy sector, which led the value benchmark. Its exposure to natural gas helped the stock perform more in line with natural gas E&Ps, which led the sector due to the European energy crisis and U.S. shale gas being considered a secure long-term source of liquid natural gas. In addition to COP’s low-cost resource base, conservative balance sheet and experienced management team, we appreciate its strong focus on ESG measures, which we believe is a good indicator of the quality of a company’s business model and management team.

Specifically, we appreciate solid governance practices with compensation metrics emphasizing ROCE and relative total shareholder return, the board’s effective oversight of management as well as the company’s methane flaring leadership. COP is investing in field electrification and carbon capture across its portfolio, with ambitions to deliver oil production with a CO2 intensity of sub-5 kg/BOE, which would be one of the lowest emission sources of supply in the world.”

You can also take a look at 14 Best Casino Stocks To Buy for 2023 and 10 Best Roth IRA Stocks To Buy.