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.
10. Comstock Resources, Inc. (NYSE:CRK)
Comstock Resources, Inc. operates as an independent energy company. The company explores, acquires, develops, and produces oil and natural gas properties. Its assets cover approximately 1,099,090 acres.
The company recently announced its Q4 2024 earnings, indicating a 12% YoY decline in production. This decline was due to the reduced drilling activity at the start of the year. For the full year, it reported an adjusted net loss of $0.24 per share. CRK has now shifted its focus to organic growth in a move that should help it avoid another lackluster year.
As per the company’s 2025 outlook, it plans to drill 20 wells and bring 17 wells online in the Western Haynesville, backed by four operated rigs. Midstream costs for the area, which will be fully funded by its partner Quantum Capital Solutions, are anticipated to be in the range of $130 million and $150 million. Moreover, the company projects to drill 26 wells and bring 29 wells online in the Legacy Haynesville.
The company plans to use operating cash flows to fund its drilling program. With any excess cash flow, the company will prioritize paying off debt. As a result, investors should not expect any sizable dividends.
9. CNX Resources Corporation (NYSE:CNX)
CNX Resources Corporation operates as an independent natural gas and midstream company. The company develops, explores, produces, and acquires natural gas properties in the Appalachian Basin. It operates through Coalbed Methane (CBM) and Shale segments.
The company recently received an upgrade from Underperform to Market Perform from Raymond James on the basis of its bullish natural gas outlook. Analysts believe that the company is likely to benefit from the rising industry trend, though its peers could arguably perform better.
The company missed estimates in the recent quarter on both revenue and EPS. Despite the miss, strong cash flow generation from its New Technologies segment and cost reduction efforts impressed investors.
As per the company’s 2025 outlook, management plans to maintain 2025 production volumes steady. However, if market prices improve, they have the flexibility to boost activity in the second half of the year. The detailed 2025 guidance regarding production targets and capital allocation is expected in the next quarter.
