We recently compiled a list of the 10 Best Gas Stocks to Buy According to Billionaires. In this article, we are going to take a look at where Occidental Petroleum Corporation (NYSE:OXY) stands against the other gas stocks.
Energy stocks have performed strongly in 2025 so far and have outpaced the broader markets. Investors seem to be shifting from the tech play in favor of companies with high free cash flow that can pay dividends and overcome economic downturns.
READ ALSO: 10 Cheap Technology Stocks to Buy According to Hedge Funds and 10 Best Stocks Under $3 to Buy Now.
Rob Thummel, senior portfolio manager at Tortoise Capital, highlighted the energy sector’s compelling investment characteristics, such as high free cash flow yields, dividend growth, and stock buybacks.
Simon Lack, portfolio manager at Catalyst Energy Infrastructure Fund, believes that tariffs are unlikely to impact US energy exports significantly. Additionally, a favorable regulatory environment under the Trump administration is expected to help lower production costs for energy companies. Lack noted that President Trump has signaled willingness to reconsider tariffs if other countries purchase more US oil and gas. This reinforces a positive outlook for the sector.
Natural gas prices have surged by over 30% in 2025. This makes natural gas the standout performer in the energy sector. Natural gas companies are benefiting from the bullish price movements.
Methodology
To compile our list of the 10 best gas stocks to buy according to billionaires, we looked for the largest gas companies. We also reviewed our own rankings, financial media reports, ETFs, and various online resources to compile a list of the best gas stocks. Next, we focused on the top 10 gas stocks most favored by billionaires. Data for the number of billionaire investors for each stock was taken from Insider Monkey’s Q4 2024 database. Finally, the 10 best gas stocks to buy were ranked in ascending order based on the number of billionaires holding stakes in them as of Q4 2024.
Additionally, we mentioned the hedge fund sentiment surrounding each stock, which was taken from Insider Monkey’s Q4 2024 database of more than 1,000 elite hedge funds.
Why do we care about what hedge funds do? 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).
Oil derricks in the background with a few workers in the foreground, emphasizing the company’s oil and gas production activities.
Occidental Petroleum Corporation (NYSE:OXY)
Number of Billionaire Investors: 14
Number of Hedge Fund Holders: 68
Occidental Petroleum Corporation (NYSE:OXY) is an international energy company that produces oil and gas. The company’s assets are primarily located in the US, the Middle East, and North Africa. It is a leading oil and gas producer in the Permian and DJ basins and offshore Gulf of America. Occidental Petroleum Corporation (NYSE:OXY) ranks among the best gas stocks to buy according to billionaires.
On March 13, JPMorgan reduced the firm’s price target on Occidental Petroleum (NYSE:OXY) from $59 to $52 and maintained a “Neutral” rating. The adjustment followed an updated analysis of exploration and production models and after considering factors like 2025 producer capex budgets, revised winter weather data, and stronger-than-expected liquefied natural gas (LNG) demand-pull. JPMorgan cautioned that a combination of record US oil supply, the return of OPEC+ oil barrels to markets in April 2025, and global trade risks related to tariffs could push oil prices lower and that could potentially force higher-cost producers out of the market.
Interestingly, Occidental Petroleum Corporation (NYSE:OXY) is actively looking to reduce costs and improve efficiency by replacing higher-cost production with more volume of lower-cost reserves. The company has identified scale efficiencies and design improvements that will help save over $1 million per well in its Midland Basin Program through better drilling and completion methods. In 2025, Occidental Petroleum Corporation (NYSE:OXY) expects a 10% faster time to market and a 7% reduction in well costs, which would represent a 15% improvement compared to 2023.
Overall, OXY ranks 6th on our list of the best gas stocks to buy according to billionaires. While we acknowledge the potential of OXY 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 OXY but that trades at less than 5 times its earnings, check out our report about the 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.
