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5 Best Oil and Gas Stocks to Buy in Q1 2025
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This beginner’s guide gives you our top five oil and gas companies to invest in right now. Scroll down to find out which are the best stocks our team of experts have selected, along with a quick summary of each one.
What are the top oil and gas stocks to buy?
Copy link to sectionThese are our picks for the best oil and gas shares around. You can find them, along with a link to their up to date share price, in the table below. Keep reading to learn about each one in more detail.
# | Stock symbol | Company name | Learn more |
---|---|---|---|
1 | OXY | Occidental | Learn more > |
2 | XOM | Exxon Mobil Corporation | Learn more > |
3 | CVX | Chevron Corporation | Learn more > |
4 | LNG | Cheniere Energy Inc | Learn more > |
5 | EOG | EOG Resources | Learn more > |
1. Occidental (NYSE: OXY)
Copy link to section- Market Cap: $53 billion
- 2023 Revenue: $28 billion
- Forward Revenue Growth: -5.15%
- Dividend yield: 1.47%
- P/E Ratio: 15
- Stock Price: $59
Occidental Petroleum is a leading American company that is involved in exploration, chemical processing, marketing, and other midstream operations.
It has grown rapidly in the past few years through acquisitions and organically. Its biggest deal happened in 2019 when it bought Anardako in a $38 billion deal.
It has since then attracted the attention of Warren Buffett, who has become its biggest investor with over 248 million shares worth $14.8 billion. Buffet loves the company because of the quality of its assets, long track record of cash generation, and room for more dividend growth.
Occidental is also a highly undervalued company trading at a price-to-earnings ratio of 15, which is lower than other related firms.
2. Exxon Mobil Corporation (NYSE: XOM)
Copy link to section- Market Cap: $433 billion
- 2023 Revenue: $335 billion
- Forward Revenue Growth: -5.15%
- Dividend yield: 3.4%
- P/E Ratio: 11
- Stock Price: $109
Another of the ‘Big Oil’ clique, Exxon is one of the biggest companies in the world by revenue and it has the capacity to produce more than 2.5 million barrels of oil every day. It generates over $335 billion in annual revenue and more than $37 billion in annual profits. It is also aiming to grow its business through its acquisition of Pioneer Natural Resources.
Its place on this list is thanks to a significant recovery since the worst days of the coronavirus crisis. In part, this is because Exxon is another oil company that pays a substantial dividend. It’s a member of the Dividend Aristocrats club of companies that have raised their dividend for at least 25 consecutive years.
The Exxon share price often rises and falls in relation to the state of the broader oil market, as high commodity prices are good for its bottom line. But Exxon is more than that: it’s a big name that you can rely on to keep paying out a dividend, and it has even shown signs of moving towards more environmentally friendly business practices as well.
3. Chevron Corporation (NYSE: CVX)
Copy link to section- Market Cap: $281 billion
- 2023 Revenue: $335 billion
- Forward Revenue Growth: -6.8%
- Dividend yield: 4.2%
- P/E Ratio: 11
- Stock Price: $152
The third member of Big Oil to make our list, Chevron is based in California and operates in 180 countries around the world. It’s one of Exxon’s biggest competitors and another company that has raised its dividend every year for more than a quarter of a century.
Chevron has grown both organically and through acquisitions. In response to Exxon’s buyout of Pioneer, the company announced a $60 billion acquisition of Hess, a leading American company. Chevron has also focused on reducing its costs, boosting profits, and growing its market share. Its annual profits have soared to over $21 billion.
In terms of the future, more cash means Chevron could be in a position for a share buyback itself, which would raise the value of the remaining shares. It has also started making tentative steps towards alternative energy sources, investing in offshore wind and planning a path towards net-zero emissions targets.
4. Cheniere Energy, Inc (NYSE: LNG)
Copy link to section- Market Cap: $36 billion
- 2023 Revenue: $19.7 billion
- Forward Revenue Growth: -6.8%
- Dividend yield: 1.1%
- P/E Ratio: 19
- Stock Price: $155
Cheniere is the biggest exporter of liquified natural gas (LNG) in the United States. LNG is a fossil fuel that’s cheaper and cleaner than many alternatives and the market for it has been growing rapidly, having more than tripled in size since 2000.
LNG is awkward to move around, so existing market leaders who control the pipelines have a significant advantage. Cheniere does deals that guarantee income well into the future, and the LNG boom has sent its revenues soaring. Having brought in just over $1bn in 2016, that figure was up to almost $10bn before the coronavirus hit.
Demand for LNG is expected to keep increasing. More than 350m tonnes of it was being shipped around the world in 2019 and that figure is expected to double again by 2040. Cheniere is already expanding its production capacity towards 50m tonnes a year, making it one of the major players in a growing market.
5. EOG Resources Inc (NYSE: EOG)
Copy link to section- Market Cap: $68 billion
- 2023 Revenue: $19.7 billion
- Forward Revenue Growth: 0.1%
- Dividend yield: 3.08%
- P/E Ratio: 9.9
- Stock Price: $118
EOG Resources used to be known by a much more famous name, as it was originally Enron’s oil & gas division. Since its split from the disgraced mothership in 1999, it has become one of the biggest oil companies in the US.
The difference between EOG and some of the other companies on this list is that its business model focuses on limiting itself to only the highest value opportunities. It wants fewer wells, but ones that provide the best returns. It’s a strategy that has allowed it to increase its dividend by more than 30% and maximise returns for shareholders.
Looking ahead, it has identified more than a thousand ‘premium drilling locations’, more than 20 years worth of opportunities to continue on its merry way. That investment in the best quality land means it’s well set to keep producing top results for the foreseeable future.
Where to buy the best oil and gas shares
Copy link to sectionThe best way to get shares in these companies right now is to use one of the trusted brokers below. The top stock brokers offer low fees and a simple interface that helps you find the shares you want. You can use our reviews as a guide to choosing one that suits you.
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What is an oil and gas stock?
Copy link to sectionAny company that is involved in any stage of the extraction, transportation, or production process for oil or gas. That means there is quite a wide range of companies that fit the bill, from those who explore for new drilling opportunities all the way through to the ones that refine it into a finished product.
Are oil and gas shares a good investment?
Copy link to sectionIt depends on the sort of investor you are. These stocks can be risky, because they are at the centre of the world economy and can be affected by things well outside of their control, like politics, recessions, and volatile commodity prices. While investing in companies that rely on fossil fuels is not for everyone.
Your reward for taking on these risks tends to be high dividend payouts, which can be an excellent way of growing wealth over time. While the share price volatility that these companies experience in response to oil prices can offer a discounted way into big, stable companies with lots of money and assets.
Overall, there are lots of opportunities in oil and gas stocks. The companies on this page are some of the best options out there, and you can sign up with a broker if you want to get started with any of them right now.
Methodology: How we choose the best oil and gas stocks
Copy link to sectionAt Invezz, our mission is to empower our readers with the most accurate and reliable financial information. Our curated selection of the best stocks in specific industries is designed to provide investors with well-researched, expertly reviewed stock recommendations. Our team follows a rigorous process to ensure our readers receive high-quality, trustworthy stock selections.
- Initial screening. Our team of experienced stock market analysts conducts an initial screening of stocks within the chosen industry. This involves analyzing a broad range of companies based on key financial metrics such as revenue growth, profitability, debt levels, and market capitalization.
- Earnings reports and financial analysis. Analysts review the latest earnings reports of shortlisted companies. This includes a detailed assessment of financial statements, looking for consistent earnings growth, strong balance sheets, and positive cash flow trends. Special attention is given to year-over-year performance and quarterly results.
- Sector analysis. A comprehensive sector analysis is conducted to understand the macroeconomic factors affecting the industry. This includes examining market trends, competitive landscape, regulatory changes, and technological advancements. Our analysts utilize industry reports, market research, and economic forecasts to gain a holistic view of the sector.
- Analyst recommendations. We consider recommendations from reputable sources such as Barron’s and Zacks. These sources provide expert opinions and ratings on stocks, which serve as an additional layer of validation for our selections. Incorporating external analyst recommendations ensures that our curated stocks are backed by a consensus of expert views.
- Internal review. After the initial selection by our analysts, the chosen stocks are reviewed by a sub-editor. The sub-editor ensures that the analysis is clear, concise, and adheres to Invezz’s editorial guidelines. This review process helps maintain the quality and readability of our content, making it accessible to a broad audience.
- Quarterly updates. To ensure our stock recommendations remain relevant and up-to-date, we update the curated section quarterly. Each update cycle involves re-evaluating the stocks based on the latest financial reports, industry developments, and market conditions. This regular update process ensures that our recommendations reflect the most current information available.
Our approach combines expert analysis, comprehensive research, and regular updates to deliver reliable and insightful investment recommendations. Read more about our review process and editorial policy.