In this article, we are going to discuss the billionaire’s 15 favorite oil and gas stocks right now.
The oil and gas industry is a significant driver of the global economy, influencing industries, transportation, and geopolitical dynamics. However, the past year has been nothing short of a roller coaster for the sector, with high volatility coming from factors such as geopolitical tensions, natural disasters, supply chain disruptions, and a dampening demand due to a global economic slowdown.
READ ALSO: 11 Best Natural Gas Stocks To Buy Now
Brent crude prices have recently hit a 6-month low as US crude oil stockpiles posted a larger-than-expected build, coupled with worries about a looming return of more OPEC+ barrels to the market and President Trump’s tariffs on Canada, Mexico, and China. The global oil and gas majors have already struggled with decreasing prices in 2024 and the recent decline has only added to their troubles. Things could get even worse, as the IEA expects Brent crude prices to fall further to $66 a barrel in 2026.
Meanwhile, as the US oil and gas production hits record highs, President Trump has made calls to “Drill, Baby, Drill” and pump those numbers up even higher, as he seeks to make the country self-sufficient in energy. However, not everyone seems to be on. Instead of continuously increasing supply and hence plunging prices even lower, the oil industry remains focused on achieving efficiency gains and maintaining capital discipline, while also rewarding loyal shareholders through dividends and share repurchase programs. According to a report by Janus Henderson, companies 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, the same cannot be said of the natural gas sector. US gas producers, which curbed production last year due to multi-year low prices, are now adding gas rigs and boosting production as the price has crossed the $4.6 mark this week. The slowing output in 2024, a booming LNG industry, and fast-depleting inventories during the coldest winter in years have driven gas prices up by over 150% over the last year.
Another significant growth driver for America’s natural gas industry is the ongoing artificial intelligence boom and the accompanying data centers, which consume 10 to 50 times the amount of energy per square foot of a typical commercial office building. These energy intensive facilities could consume as much as 9% of all energy generated in the US by 2030, and this energy needs to come from a relatively clean, flexible, and reliable source that is abundantly available in the form of natural gas. According to energy data provider Enverus, a total of 80 new gas power plants could be constructed in America by the end of the decade, adding about 46 GW of new capacity – 20% higher than the gas capacity additions in the last five years. Several gas majors are now even bypassing traditional utilities and building power plants to connect directly to data centers, a move that could reshape the industry in the years to come, if it pays off.
With that said, here are the Best Energy Stocks to Invest in According to Billionaires.
A wide shot of oil rigs on a field, with the sun setting in the background.
Methodology
To collect data for this article, we scanned Insider Monkey’s database of billionaires’ stock holdings and picked the top 15 companies operating in the oil and gas sector with the highest number of billionaire investors in Q4 of 2024. Following are the Best Oil and Gas Energy Stocks to Buy 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).
15. Gulfport Energy Corporation (NYSE:GPOR)
Number of Billionaire Holders: 13
Gulfport Energy Corporation (NYSE:GOR) is an independent natural gas-weighted exploration and production company focused on the exploration, acquisition, and production of natural gas, crude oil, and NGL in the US. The company holds a sizable acreage position totaling approximately 73,000 net reservoir acres in the core of the SCOOP.
Gulfport Energy Corporation (NYSE:GOR) reported a revenue of $239.87 million in Q4 of 2024, down almost 51% YoY and below market expectations by $90.9 million. However, the company’s EPS of $4.8 beat the analysts’ estimates by $0.68. Moreover, the oil and gas company’s total Q4 net liquids production of 16.2 MBbl per day was up 7% over Q3 and 13% over Q4 of 2023. Gulfport generated $650 million in operating cash flow in 2024 and announced expanding its stock repurchase authorization by 54% to a total of $1 billion, with approximately $406.8 million still remaining at the end of the year.
Gulfport Energy Corporation (NYSE:GOR) is projecting a total capital spend in the range of $370 million to $395 million for 2025, with aims to increase its liquids production by 30% YoY. The company plans to return a substantial portion of its adjusted free cash flow through stock repurchases, indicating its commitment to its shareholders.
14. Patterson-UTI Energy, Inc. (NASDAQ:PTEN)
Number of Billionaire Holders: 13
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.
Patterson-UTI Energy, Inc. (NASDAQ:PTEN) fell short of market estimates in Q4 2024, with its revenue plunging by 24.1% YoY to $1.2 billion. The company’s EPS came in at -$0.13, missing expectations by $0.03. PTEN concluded 2024 with an adjusted free cash flow of $523 million and returned $417 million to its shareholders, 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. Patterson-UTI declared a quarterly dividend of $0.08 per share for Q1 of 2025.
Patterson-UTI Energy, Inc. (NASDAQ:PTEN) expects the US shale drilling market to remain relatively steady in 2025 and projects its capital expenditures to be approximately $600 million. The company remains committed to returning at least 50% of its adjusted free cash flow to investors through dividends and share repurchases. PTEN also revealed that it has secured a new 5-year, $500 million unsecured revolving credit facility, reflecting the ‘strength of its franchise and financial relationships’.
Shares of PTEN have declined by over 39% over the last year.
13. Devon Energy Corporation (NYSE:DVN)
Number of Billionaire Holders: 13
Devon Energy Corporation (NYSE:DVN) is a leading independent energy company engaged in finding and producing oil and natural gas, with operations focused onshore in the United States. It is among the best energy stocks according to billionaires.
Devon Energy Corporation (NYSE:DVN) ended 2024 with exceptionally strong results, especially after the integration of its Grayson Mill assets. The company reported a revenue of $4.4 billion, up 6.22% YoY and above market expectations by over $155.3 million. DVN’s EPS of $1.16 also beat estimates by $0.16. Moreover, the company’s oil production reached an all-time high of 398,000 barrels per day during the quarter, largely driven by the timing and productivity of its Eagle Ford wells. Its overall oil and gas production hit 848,000 barrels of oil equivalent per day (boed) in Q4, topping prior estimates of 811,000 boed to 830,000 boed. The impressive performance has encouraged the company to raise its overall guidance for 2025 to 815,000 boed, including 383,000 barrels of oil per day.
Devon Energy Corporation (NYSE:DVN) maintains a strong balance sheet and its overall free cash flow for 2024 came in at $3 billion, of which it returned $2 billion to its shareholders. The company declared a quarterly dividend of $0.24 per share, up 9.1% from its prior dividend of $0.22. For 2025, DVN is targeting up to a 70% cash return payout to shareholders from generated free cash flow at current strip pricing.
