We recently published a list of Why These 15 Oil & Gas Stocks Are Skyrocketing So Far In 2025. In this article, we are going to take a look at where Plains GP Holdings, L.P. (NASDAQ:PAGP) stands against other oil & gas stocks that are skyrocketing so far in 2025.
The oil & gas sector has been quite bullish over the past few months as Trump won the election. Some stocks have gained significantly after he entered office.
The Stargate announcement has also driven bullish sentiment as the AI data center expansion will drive significant energy demand. They require 24/7 reliable energy sources and data centers alone are expected to consume 500 Twh globally in 2025. This is up 11% from 2024.
Plus, cold U.S. winters and European export demand have lifted natural gas prices from historic lows, and LNG companies have been gaining traction as global gas trade expands.
Trump’s executive orders have also reversed clean energy mandates, so many investors see this as a good sign that things will go well for oil & gas stocks for the next four years. It’s worth looking into the ones that have gained the most, as these companies are the ones spearheading the sector.
Methodology
For this article, I screened the top-performing oil & gas stocks year-to-date. Stocks that I have covered recently will be excluded from this list.
I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds invest in? 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 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here).
An oil tanker moving across the open ocean, showing the scope of the midstream energy infrastructure.
Plains GP Holdings, L.P. (NASDAQ:PAGP)
Number of Hedge Fund Holders In Q3 2024: 18
Plains GP Holdings, L.P. (NASDAQ:PAGP) operates midstream energy infrastructure. The company connects production basins like the Permian to refineries and export hubs and handles about 8 million barrels daily.
PAGP stock has gained significantly year-to-date due to strategic acquisitions and capital optimization. On January 7, 2025, Plains announced three bolt-on acquisitions totaling $670 million net. This includes Ironwood Midstream’s Eagle Ford assets and Medallion Midstream’s Delaware Basin operations.
Plains GP Holdings (NASDAQ:PAGP) has also repurchased 18% of its Series A Preferred Units at par ($330 million). As such, it reduced leverage below its 3.25x target. Moreover, Plains GP increased its quarterly distribution by 20% to $0.38/unit (annualized $1.52). Analysts responded positively, with Wolfe Research upgrading to Outperform (PT: $22) and UBS raising its target to $26.
Recent SEC filings show Plains raised $1 billion via 5.95% senior notes due 2035.
The consensus price target of $21.14 implies 0.05% downside.
PAGP stock is up 14.2% year-to-date.
Overall, PAGP ranks 9th on our list of oil & gas stocks that are skyrocketing so far in 2025. While we acknowledge the potential of PAGP 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 PAGP 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.
