We recently published a list of 12 Best Oil and Gas Penny Stocks to Invest in Now. In this article, we are going to take a look at where Berry Corporation (NASDAQ:BRY) stands against other best oil and gas penny stocks to invest in now.
The oil and gas sector faces a pivotal moment in 2025 as it deals with complex dynamics from global tensions, evolving policy directions, and rising innovation. The stable pricing in 2024, after many decades, now faces hurdles due to geopolitical stresses, energy transition demands, and economic shifts. Companies are keeping tight capital control while boosting tech productivity, as analysts predict oil will stay between $70 and $80 per barrel. However, geopolitical instability and unpredictability could push prices higher.
Despite these obstacles, operations have advanced as the sector’s capital spending has increased 50% from 2020. Meanwhile, returns are on the upswing as businesses focus on high-performing assets and refine their portfolios. Many companies are betting on digital and green tech—carbon capture, hydrogen, and data-driven exploration—as part of a wider clean energy push. Global oil trade issues have shifted focus to natural gas as a second key revenue source, thus, gas prices have jumped lately. According to Yahoo Finance data, LNG futures are up nearly 40% in six months and 91.65% year-over-year at Henry Hub, thanks to low stockpiles, winter demand, and rising LNG exports.
Although market instability persists, as recent OPEC+ supply boost and US-China trade tensions have pushed down crude prices. As of April 2025, West Texas Intermediate (WTI) crude sits near a three-year low of $61.5 per barrel. The US Energy Information Administration (EIA) sees an average of $63.88/bbl this year, further dropping to $57.48 in 2026. This decline, plus tariff hurdles and export problems, might squeeze US oil output since profit thresholds sit between $61-$70/bbl. This shows how even major forecasters are scaling back amid trade fights and project holdups.
Now, the trend has shifted to natural gas as the growth driver for the oil and gas industry. Europe remains central to global LNG trade, taking 55% of US LNG exports in 2024, per LSEG data. As seen last December, 69% of US LNG shipments (5.84 MT) went to Europe, up from November’s 5.09 MT, driven by winter needs and limited Russian supply. As trade tensions add complications, China’s 15% tariff on US LNG threatens new deals despite existing contracts.
The outlook is mixed but hopeful as oil demand rebounds post-pandemic and a global boost in energy diversification. Although solar energy helps reduce fossil fuel dependence, it won’t replace it entirely, which shows the significance of a harmonized energy mix. In the same way, the main alternatives—solar, wind, and nuclear—each have scaling or consistency limits. Oil and gas, especially natural gas, remain vital to global growth and energy security, creating openings for agile, cost-effective penny stocks.
While major companies grab headlines with billion-dollar projects, penny stocks—small-cap oil and gas companies trading under $5—attract interest for their high-growth potential.
Our Methodology
We first sifted through ETFs, online rankings, and internet lists to compile a list of the best oil and gas stocks under $5. We then selected the 12 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024. For tied stocks, we ranked them by the value of their hedge fund stakes. The hedge fund data was sourced from Insider Monkey’s database, which tracks the moves of over 1000 elite money managers.
Why are we interested in 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).
Aerial view of Berry Petroleum Corporation’s oil drilling site in the San Joaquin and Ventura basins.
Berry Corporation (NASDAQ:BRY)
Number of Hedge Fund Holders: 28
Share Price as of April 16: $2.35
Berry Corporation (NASDAQ:BRY) works as an independent energy company mainly in California and Utah. It develops stable, low-risk oil and gas reserves while having a separate segment offering well services and abandonment services. The company’s major focus is on mature basins with existing infrastructure, helping it produce cost-effectively despite tough regulations and environmental challenges, making it one of the best oil and gas stocks.
For the year ended December 31, 2024, Berry Corporation (NASDAQ:BRY) posted $292 million in adjusted EBITDA, up 9% from last year. Free cash flow hit $108 million total for the year, with $24 million made in Q4. Although the company kept production steady at 25,400 BOE/day, California saw an overall decline. While Berry cut operating costs by 12% and admin expenses by 6%, by year-end, it showed $450 million in debt, a 1.5x leverage ratio, and $110 million in liquidity.
Berry Corporation (NASDAQ:BRY) drilled 56 wells in 2024, including 10 in Utah’s Uinta Basin, where new horizontal wells yielded 1,900-2,000 BOE/day. Its reserves totaled 107 million BOE worth a PV-10 value of $2.3 billion, with a 147% replacement ratio. Additionally, the company’s California thermal projects exceeded 100% returns and spotted over 200 potential horizontal well sites in the Uinta Basin. Furthermore, a methane emission reduction project achieved an 80% cut ahead of schedule.
For 2025, Berry Corporation (NASDAQ:BRY) plans around 50 new wells, with 40% of spending in Utah, up from 25% last year. About 75% of expected oil production is hedged at a $74.24 per barrel average strike price. Despite permit concerns in Kern County, Berry remains confident about maintaining production and executing drilling plans.
Overall, BRY ranks 2nd on our list of best oil and gas penny stocks to invest in now. While we acknowledge the potential of BRY as an investment, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than BRY but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
