Independent oil and gas company Coterra Energy produces oil and natural gas primarily in the Marcellus Shale area around Pennsylvania and the Anadarko Basin of Oklahoma. With a healthy dividend yield, solid quarterly earnings, and future-facing initiatives, Shell is one of the best energy investments for long-term investors looking to hedge their oil exposure with adaptability. Shell has been reinventing itself quicker than most legacy oil giants.

What is the forecast for oil stocks?

This cash flow should continue to protect ExxonMobil’s dividend and its status as a Dividend Achiever, or a stock that has increased its payout for 10 consecutive years. Given the growth of renewables, many investors are choosing to avoid oil stocks entirely. However, ExxonMobil is making investments in lower-carbon fuel sources, including carbon capture and storage, as well as biofuels, which may enable it to continue supplying the economy with fuel for years to come.

That gives it the cash to pay a high-yield dividend while also investing to expand its energy infrastructure operations. Oil has long been a store of wealth as its price has continued to rise over time. However, all investments come with risk, and you should research each oil stock you choose prior to trading.

Best Oil Stocks Of 2025

Our partners cannot pay us to guarantee favorable reviews of their products or services. These stocks appear undervalued by 27.8% to 69.6% based on InvestingPro’s Fair Value model, while analysts project an average upside of 29.4% to 83.5%. Back in fiscal 2022, it saw net profit triple over the prior year to 13.8 billion euros—and made the most of that windfall by allocating 2 billion euros toward long-term net debt reduction. As a further nod to the future, Eni is also undergoing a significant transition away from fossil fuels as it targets an 80% reduction in its carbon footprint by 2040.

Plus, the sector of the industry where the company works changes the way they operate and adjust to market shifts. For example, a smaller downstream company might have more room to adjust to a shifting market where a larger midstream company might not. Carefully considering your options and monitoring their performance is the best way to keep your portfolio in good condition. Oil has long stood as one of the pillars of global energy, and despite all the developments in renewable energy, the oil sector continues to offer investors solid returns.

Considerations When Buying Oil Assets

Their steady hand and rock-solid balance sheet make them one of the most reliable options for oil investors. In 2025, they’re maintaining low production costs while expanding upstream assets. The investing information provided on this page is for educational purposes only. NerdWallet, Inc. does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments. The world’s largest oil-exporting nations include members of OPEC (Organization of the Petroleum Exporting Countries), a cartel that works to coordinate members’ oil policies. It can withhold supply to push prices higher or increase its output to drive them lower.

• Both offer rather anemic dividend yields of less than 2.3%, and that is not the kind of income potential many investors look for.
• But slower economic growth, a softening jobs market and the cumulative effect of years of above-average inflation have also been a weight on the sector.
• We’re seeing stabilized oil prices, supply constraints due to geopolitical tensions, and growing demand from economies bouncing back post-pandemic.
• The company’s focus on making smart investments and returning cash to investors should enable Phillips 66 to continue enhancing shareholder value in the coming years.

CFDs across Foreign Exchange, Metals, Commodity and Stock markets around the globe

• If you’re looking for faster growth without the bloat of downstream operations, COP is a pure-play that gets the job done—and then some.
• That gives it the cash to pay a high-yield dividend while also investing to expand its energy infrastructure operations.
• Many top oil players are investing in carbon capture tech or renewable subsidiaries.

The top oil stocks in 2025 include ExxonMobil, Chevron, Shell, ConocoPhillips, BP, EOG Resources, Marathon Petroleum, Occidental Petroleum, and Pioneer Natural Resources. The company’s bold acquisition of Anadarko a few years back added high-quality reserves, and now it’s paying off. They’ve significantly cut debt, increased efficiencies, and are turning out tons of free cash flow. Refining margins have been chunky recently, and 2025 looks to be another profitable year as global demand for refined fuels picks back up. On top of that, Marathon’s retail operations—they own a huge network of gas stations—add another stable revenue stream. They have expansive holdings across U.S. shale plays, including the Eagle Ford and Bakken formations.

How Automation Is Transforming Industries and Raising Concerns About Jobs and Business Operations

And he didn’t just buy a few shares of Occidental—he bought a huge stake. If you’re looking for faster growth without the bloat of downstream operations, COP is a pure-play that gets the job done—and then some. Streamlines order fulfillment, automates stock tracking, and ensures efficient delivery management, helping businesses optimize logistics and improve customer satisfaction. Easy to run solutions for retail and e-commerce businesses, optimizing inventory management, order fulfillment, and customer experience, driving efficiency and profitability. You also can open a Cash Account offered by Atomic Brokerage which allows you to earn interest on your cash through a cash sweep program. EBC Financial Group (UK) Ltd has become aware that our name has been linked to an online Crypto offering by a company.

ExxonMobil

With supply-demand dynamics shifting, geopolitical influences, and a push for energy independence, oil stocks are once again catching investor attention. If you’re looking to dive into energy investments, this guide to the 9 best oil stocks of 2025 breaks down exactly where to look. As one of the largest oil companies on the planet, ExxonMobil is a fully integrated supermajor. It operates in every segment of the oil and gas industry, including E&P, midstream, petrochemical manufacturing, refining, and, even further downstream, marketing refined and petroleum products to customers.

The company’s diversification enables it to produce lots of low-cost oil and natural gas, which allows it to generate plenty of cash. Enbridge owns extensive midstream assets that transport hydrocarbons across the U.S. and Canada. Its pipeline network consists of the Canadian Mainline system, regional oil sands pipelines, and natural gas pipelines. The company also owns and operates a regulated natural gas utility and Canada’s largest natural gas distribution company. Finally, the firm has a small renewables portfolio primarily focused on onshore and offshore wind projects. Pick the ones that align with your risk level, financial goals, and timeline.

Meanwhile, oil companies that operate independently of OPEC can also have an impact on oil prices. If they allocate too much capital to new projects, they can cause an oversupply and weigh on prices. Since oil and gas assets are developed over a long time, companies cannot quickly increase their supplies in response to favorable market conditions. Enterprise Products Partners is a master limited partnership that transports and processes natural gas, natural gas liquids, crude oil, refined products and petrochemicals.

It’s not just about crude anymore—they’re all-in on natural gas and growing their clean energy footprint. That flexible strategy is helping them stay profitable while branching into the energy future. Many top oil players are investing in carbon capture tech or renewable subsidiaries.

Enbridge operates one of the biggest oil pipeline systems in the world. Enbridge also has an extensive natural gas pipeline system, a natural gas utility business, and renewable energy operations. Africa Oil Corp is an international oil and gas exploration company. It is an exploration stage best oil stock enterprise that participates in oil and gas projects located in emerging markets, in sub-Saharan Africa.

Investing in oil stocks in 2025 isn’t about catching a trend—it’s about understanding the long game. While the world transitions to cleaner energy, oil still plays a massive role in powering the planet. These top 9 oil stocks each offer something unique—whether it’s stability, explosive growth, or an innovative edge. Chevron might seem like the “safe choice” in the oil sector—and that’s exactly what makes it valuable.

Whether you’re in it for dividends, fast gains, or portfolio diversification, this sector offers rich opportunities if you know where to look. Just remember—energy isn’t one-size-fits-all, and neither are oil investments. They’ve been aggressive about shareholder returns too—opting for variable dividends that adjust with earnings. That’s great news for investors looking to benefit from both strong oil prices and the company’s efficient operations. Investors looking for reliable dividends, inflation hedges, and steady growth should seriously consider adding oil stocks to their portfolios now.