7 Best Oil and Gas Stocks to Buy in 2025

7 Best Oil and Gas Stocks to Buy in 2025

As the world continues to navigate the complexities of energy demand, shifting geopolitical landscapes, and innovations in sustainability, the oil and gas sector remains a core part of the global economy. Despite challenges such as the push for renewable energy and fluctuating commodity prices, some companies within the industry are well-positioned to thrive in 2025 and beyond. Here are seven of the best oil and gas stocks to buy this year, offering investors a mix of stability, growth potential, and robust dividend returns.

1. ExxonMobil (XOM)

Overview: ExxonMobil, one of the largest publicly traded oil and gas companies globally, is known for its expansive presence across exploration, production, refining, and marketing. With a diversified portfolio of assets, the company is expected to continue its leadership in the oil and gas sector.

Why Buy in 2025: ExxonMobil has been focusing on both traditional oil and gas exploration as well as cleaner energy initiatives, such as carbon capture and hydrogen projects. Its financial strength, coupled with ongoing investments in energy transition technologies, makes it a strong pick for long-term stability and growth. ExxonMobil also offers a consistent dividend yield, appealing to income-focused investors.

Key Metrics:

• Market Cap: $400B+

• Dividend Yield: 3.4% (as of 2024)

• P/E Ratio: ~10

2. Chevron (CVX)

Overview: Chevron is another energy behemoth with a robust portfolio in both upstream (exploration and production) and downstream (refining and marketing). Its strong operational efficiency, diverse geographic presence, and a growing focus on low-carbon technologies position it as a top contender for 2025.

Why Buy in 2025: Chevron has been making strategic investments in cleaner technologies like renewable energy, biofuels, and hydrogen, while maintaining a profitable oil and gas business. This balance of innovation and traditional operations allows Chevron to adapt to changing market conditions and consumer demands.

Key Metrics:

• Market Cap: $300B+

• Dividend Yield: 3.6% (as of 2024)

• P/E Ratio: ~11

3. ConocoPhillips (COP)

Overview: ConocoPhillips is a major player in the oil and gas industry, primarily focusing on upstream operations. The company is known for its strong commitment to returning capital to shareholders through buybacks and dividends.

Why Buy in 2025: ConocoPhillips is one of the best-positioned oil majors due to its low-cost operations and efficient capital allocation. With a solid balance sheet and significant capital returns, ConocoPhillips has outperformed many of its peers in recent years. The company’s focus on maintaining high-margin production and expanding its global presence makes it a top pick for investors seeking growth and income.

Key Metrics:

• Market Cap: $150B+

• Dividend Yield: 2.8% (as of 2024)

• P/E Ratio: ~9

4. Occidental Petroleum (OXY)

Overview: Occidental Petroleum is an integrated oil and gas company that engages in exploration, production, and chemicals. The company’s notable acquisition of Anadarko Petroleum in 2019 significantly boosted its position in global markets.

Why Buy in 2025: Occidental's strategic emphasis on reducing debt, coupled with its focus on profitable production in key regions, has positioned it for a strong recovery. The company also has significant exposure to the growing Permian Basin, which offers some of the lowest production costs in the U.S. The company is also working on capturing carbon dioxide for enhanced oil recovery, which could be a key growth driver in the coming years.

Key Metrics:

• Market Cap: $60B+

• Dividend Yield: 1.4% (as of 2024)

• P/E Ratio: ~12

5. EOG Resources (EOG)

Overview: EOG Resources is one of the largest independent (non-integrated) oil and gas producers, with a significant focus on the U.S. shale sector, particularly the Permian Basin and Eagle Ford Shale.

Why Buy in 2025: EOG is recognized for its strong operational efficiency, having one of the best returns on capital among its peers. The company focuses on maximizing shareholder value through disciplined capital allocation and low-cost, high-return production. Its solid balance sheet and continued growth in oil production make it an attractive option for investors looking to capitalize on the potential of U.S. shale oil.

Key Metrics:

• Market Cap: $75B+

• Dividend Yield: 1.7% (as of 2024)

• P/E Ratio: ~10

6. TotalEnergies (TOT)

Overview: Based in France, TotalEnergies is one of the world's leading energy companies with a balanced portfolio in oil, natural gas, and renewables. The company has made significant strides in diversifying its business to include cleaner energy sources.

Why Buy in 2025: TotalEnergies is transitioning rapidly toward renewable energy while maintaining a strong oil and gas business. The company is heavily investing in solar, wind, and biofuel projects, with a goal of reaching net-zero emissions by 2050. Its forward-looking strategy makes it a compelling option for those looking for exposure to both the traditional energy sector and the growing clean energy market.

Key Metrics:

• Market Cap: $200B+

• Dividend Yield: 4.6% (as of 2024)

• P/E Ratio: ~8

7. Royal Dutch Shell (RDS.A)

Overview: Shell is a global energy leader involved in oil and gas exploration, refining, and renewables. The company’s transition toward cleaner energy, coupled with its strong dividends, makes it a solid pick in 2025.

Why Buy in 2025: Shell is focusing on reducing its carbon footprint and accelerating the adoption of clean energy technologies, including hydrogen, electric charging infrastructure, and biofuels. Shell's commitment to shareholder returns through dividends and buybacks, combined with its diversified energy portfolio, makes it an attractive choice for investors in the current market.

Key Metrics:

• Market Cap: $200B+

• Dividend Yield: 4.1% (as of 2024)

• P/E Ratio: ~9

Final Thoughts

The oil and gas sector in 2025 is marked by significant change, with companies increasingly focusing on sustainability and cleaner energy while maintaining profitability in traditional oil and gas operations. Investing in oil and gas stocks requires a balanced approach—considering both the cyclical nature of the industry and the long-term shift toward renewables. The seven stocks listed here offer a combination of stable dividends, growth potential, and a strategic focus on innovation, positioning them as some of the best buys for investors in 2025.

Before making any investment, however, it's essential to conduct thorough research and consider how these stocks fit within your broader portfolio strategy.