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Best Oil and Gas Stocks to Buy Now (2025)

Top oil and gas stocks in 2025 ranked by overall Zen Rating. "A" Rated stocks have returned an average of +32.52% per year, and are the best oil and gas stocks to buy now. Learn More.

According to Zen Ratings, our proprietary rating system that evaluates 115 factors proven to drive growth in stocks and assigns each stock in our system an overall letter grade as well as 7 individual Component Grades for Value, Growth, Momentum, Sentiment, Safety, Financials, and proprietary AI algorithms, the 3 best oil stocks to buy right now are:

Kimbell Royalty Partners (NYSE:KRP) is the #1 top oil and gas stock out of 76 with a Zen Rating of B. Stocks with a rating of B have had an average return of +19.88% per year. Learn more.

The Component Grade breakdown for Kimbell Royalty Partners (NYSE:KRP) is: Value: D, Growth: B, Momentum: C, Sentiment: B, Safety: C, Financials: B, and AI: C.

Kimbell Royalty Partners (NYSE:KRP) has a Due Diligence Score of 22, which is -6 points lower than the oil and gas industry average of 28. Although this number is below the industry average, our proven quant model rates KRP as a "B".

KRP passed 7 out of 38 due diligence checks and has weak fundamentals. Kimbell Royalty Partners has seen its stock lose -16.29% over the past year, overperforming other oil and gas stocks by 2 percentage points.

Kimbell Royalty Partners has an average 1 year price target of $17.00, an upside of 24.36% from Kimbell Royalty Partners's current stock price of $13.67.

Kimbell Royalty Partners stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 1 analyst covering Kimbell Royalty Partners, 100% have issued a Strong Buy rating, 0% have issued a Buy, 0% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Ring Energy (NYSEMKT:REI) is the #2 top oil and gas stock out of 76 with a Zen Rating of B. Stocks with a rating of B have had an average return of +19.88% per year. Learn more.

The Component Grade breakdown for Ring Energy (NYSEMKT:REI) is: Value: A, Growth: C, Momentum: C, Sentiment: B, Safety: C, Financials: C, and AI: C.

Ring Energy (NYSEMKT:REI) has a Due Diligence Score of 13, which is -15 points lower than the oil and gas industry average of 28. Although this number is below the industry average, our proven quant model rates REI as a "B".

REI passed 4 out of 33 due diligence checks and has weak fundamentals. Ring Energy has seen its stock lose -34.21% over the past year, underperforming other oil and gas stocks by -16 percentage points.

Sandridge Energy (NYSE:SD) is the #3 top oil and gas stock out of 76 with a Zen Rating of C. Stocks with a rating of C have had an average return of +7.53% per year. Learn more.

The Component Grade breakdown for Sandridge Energy (NYSE:SD) is: Value: B, Growth: D, Momentum: C, Sentiment: B, Safety: B, Financials: C, and AI: C.

Sandridge Energy (NYSE:SD) has a Due Diligence Score of 49, which is 21 points higher than the oil and gas industry average of 28.

SD passed 18 out of 38 due diligence checks and has strong fundamentals. Sandridge Energy has seen its stock return 21.23% over the past year, overperforming other oil and gas stocks by 39 percentage points.

Out of 37 oil and gas stocks that have issued dividends in the past year, the 3 oil and gas stocks with the highest dividend yields are:

Mach Natural Resources (NYSE:MNR) has an annual dividend yield of 19.01%, which is 14 percentage points higher than the oil and gas industry average of 4.82%.

Mach Natural Resources's dividend payout ratio of 234% indicates that its high dividend yield might not be sustainable for the long-term.

Txo Partners (NYSE:TXO) has an annual dividend yield of 16.25%, which is 11 percentage points higher than the oil and gas industry average of 4.82%.

Txo Partners's dividend payout ratio of 548.8% indicates that its high dividend yield might not be sustainable for the long-term.

Kimbell Royalty Partners (NYSE:KRP) has an annual dividend yield of 12.14%, which is 7 percentage points higher than the oil and gas industry average of 4.82%. Kimbell Royalty Partners's dividend payout is not stable, having dropped more than 10% eight times in the last 10 years. Kimbell Royalty Partners's dividend has shown consistent growth over the last 10 years.

Kimbell Royalty Partners's dividend payout ratio of -1,844.4% indicates that its high dividend yield might not be sustainable for the long-term.

Oil and gas stocks were down -0.63% in the last day, and up 2.53% over the last week.

We couldn't find a catalyst for why oil and gas stocks are down.

Based on the Valuation rating, one of the 7 components of a stocks overall Zen Ratings grade, which evaluates factors including estimated earnings yield, earnings before interest and taxes/enterprise value, cash flow yield, free cash flow to price, and price-to-earnings growth (PEG ratio), the 3 most undervalued oil and gas stocks right now are:

Sm Energy Co (NYSE:SM) is the most undervalued oil and gas stock based on its Valuation Rating of A. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Sm Energy Co has a valuation score of 43, which is 15 points higher than the oil and gas industry average of 28. It passed 3 out of 7 valuation due diligence checks.

Sm Energy Co's stock has dropped -57.8% in the past year. It has underperformed other stocks in the oil and gas industry by -40 percentage points.

Apa (NASDAQ:APA) is the second most undervalued oil and gas stock based on its Valuation Rating of A. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Apa has a valuation score of 29, which is 1 points higher than the oil and gas industry average of 28. It passed 2 out of 7 valuation due diligence checks.

Apa's stock has gained 12.13% in the past year. It has overperformed other stocks in the oil and gas industry by 30 percentage points.

Riley Exploration Permian (NYSEMKT:REPX) is the third most undervalued oil and gas stock based on its Valuation Rating of A. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Riley Exploration Permian has a valuation score of 71, which is 43 points higher than the oil and gas industry average of 28. It passed 5 out of 7 valuation due diligence checks.

Riley Exploration Permian's stock has dropped -22.3% in the past year. It has underperformed other stocks in the oil and gas industry by -4 percentage points.

44.9% of oil and gas stocks rated by analysts are a strong buy right now. On average, analysts expect oil and gas stocks to rise by 23.67% over the next year.

0% of oil and gas stocks have a Zen Rating of A (Strong Buy), 3.17% of oil and gas stocks are rated B (Buy), 63.49% are rated C (Hold), 25.4% are rated D (Sell), and 7.94% are rated F (Strong Sell).