We recently published a list of Top 10 Oil & Gas E&P Stocks Outperforming Despite Sinking Oil Prices. In this article, we are going to take a look at where Veren Inc. (NYSE:VRN) stands against other top oil & gas E&P stocks outperforming despite sinking oil prices.
Oil prices have crashed by as much as 8.5% since the start of this month as Donald Trump reignites the tariff war. At one point, it was down as much as 18%! The broader market, as well as investors, have come to terms with a harsh reality: the tariffs are here to stay!
Inflation resulting from these tariffs threatens to send the country’s economy into recession, and global oil demand is reacting accordingly. The oil prices continue to tumble, threatening the future of some of the major oil producers of the world.
Amid this uncertain environment, some oil and gas stocks are outperforming the market. We decided to take a look at these stocks to find gems that can help retail investors outperform the market in these tough times.
To come up with our list of the top 10 oil & gas stocks outperforming despite sinking oil prices, we looked at the oil & gas exploration and production industry, considering only the stocks with a market cap between $2 billion and $10 billion.
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Veren Inc. (NYSE:VRN)
Veren Inc. (NYSE:VRN) develops, acquires, and holds interests in petroleum assets operations. The company recently entered into a merger agreement with Whitecap Resources in an all-share transaction valued at approximately C$15 billion, along with debt. The company’s stock is up 5.18% in the last one week of trading.
Raymond James analyst Luke Davis shared his thoughts on this merger by saying:
“The merger is a match made in heaven and a long time in the making, as the combined company is positioned exceptionally well thanks to Whitecap’s management team and poised to improve operational performance and capture synergies across the value chain.”
Veren Inc. (NYSE:VRN) also offers an attractive dividend yield of 5.5%, which makes it a compelling candidate for income-oriented investors. There was a surge in the market price once the merger was announced, but that could be attributed to an arbitrage play between the two companies involved.
Over time, one may see the stock price correct itself to come back to its previous valuations. However, investors shouldn’t forget that the Canadian Oil landscape has now changed with the two companies coming together. The resulting entity will be in a better position to negotiate favorable pricing with service providers and be less prone to risks that normally affect its now smaller peers.
Overall, VRN ranks 4th on our list of top oil & gas E&P stocks outperforming despite sinking oil prices. While we acknowledge the potential of VRN 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. There is an AI stock that has gone up since the beginning of 2025, while popular AI stocks have lost around 25%. If you are looking for an AI stock that is more promising than VRN 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.
