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 Targa Resources Corp. (NYSE:TRGP) stands against the other best 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).
An oil tanker at sunset, symbolizing the company’s supply of global crude oil.
Targa Resources Corp. (NYSE:TRGP)
Number of Billionaire Investors: 16
Number of Hedge Fund Holders: 61
Targa Resources Corp. (NYSE:TRGP) is an American midstream energy infrastructure corporation that ranks among the best gas stocks to buy. As one of the largest integrated infrastructure companies, it delivers natural gas and natural gas liquids (NGLs) to key domestic and international demand markets. Targa Resources Corp. (NYSE:TRGP) has the leading gathering and processing position in the Permian Basin with significant access to NGL supply. The company’s gathering and processing assets also span other major shale and natural resource plays, like Bakken Shale, Barnett Shale, Eagle Ford Shale, Anadarko Basin, Ardmore Basin, Arkoma Basin, and onshore Louisiana.
The company is actively working on growth projects to expand its infrastructure and meet market demands. In its Gathering and Processing (G&P) segment, Targa Resources Corp. (NYSE:TRGP) is constructing several natural gas processing plants, including the Pembrook II, East Pembrook, and East Driver plants in the Permian Midland, as well as the Bull Moose II and Falcon II plants in the Permian Delaware. Additionally, Targa is building a 150 MBbl/d Train 11 fractionator in Mont Belvieu. These projects are progressing well and are on track for completion as planned.
In February 2025, Targa Resources Corp. (NYSE:TRGP) announced new initiatives to address the increasing production and infrastructure needs of its customers. These include the Delaware Express pipeline expansion, a 100-mile project in Permian Delaware, and an expansion of its LPG export capabilities at Galena Park Marine Terminal to handle 19 MMBbl per month. Another initiative is the Train 12, a new 150 MBbl/d fractionator in Mont Belvieu. Targa Resources Corp. (NYSE:TRGP) expects that these projects will start operations between 2026 and 2027.
Overall, TRGP ranks 4th on our list of the best gas stocks to buy according to billionaires. While we acknowledge the potential of TRGP 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 TRGP but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.