The Best Energy Stocks to Buy

Energy stocks appeal to investors for a few different reasons.

• They tend to perform independently of other types of stocks, so investors buy them to diversify their portfolios.
• Many energy stocks offer attractive yields and therefore appeal to investors who like high-dividend stocks.
• They provide investors with a way to play rising oil prices.
• Energy stocks can help hedge against inflation as oil and gas prices typically rise during inflationary periods.

In the year to date, the Morningstar US Energy Index rose 51.77%, while the Morningstar US Total Market Index gained 11.26%.

The 7 Best Energy Stocks to Buy Now

These were the most undervalued energy stocks that Morningstar’s analysts cover as of Nov. 2, 2026.

1. Expand Energy EXE
2. Antero Resources AR
3. Baker Hughes BKR
4. Devon Energy DVN
5. EQT Production Company EQT
6. Range Resources RRC
7. Enbridge ENB

To come up with our list of the best energy stocks to buy now, we screened for:

• Energy stocks that are undervalued, as measured by our price/fair value metric.
• Stocks that earn narrow or wide

  Morningstar Economic Moat Ratings

  , as well as companies that do not have a moat. We think companies with narrow economic moat ratings can fight off competitors for at least 10 years; wide-moat companies should remain competitive for 20 years or more.

• Stocks that earn a Low, Medium, High, or Very High

  Morningstar Uncertainty Rating

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  , which captures the range of potential outcomes for a company’s fair value.

Here’s a little more about each of the best energy stocks to buy, including commentary from the Morningstar analysts who cover each company. All data is as of Nov. 2, 2026.

Expand Energy

• Morningstar Uncertainty Rating: High
• Morningstar Economic Moat Rating: None
• Forward Dividend Yield: 2.57%
• Industry: Oil & Gas E&P

Oil and gas exploration and production company Expand Energy is the most affordable stock on our list of the best energy stocks to buy. Expand Energy is the largest North American natural gas producer and marketer. The stock is trading 36% below our fair value estimate of $139 per share.

Expand Energy’s strategic priority over the near and medium term is to pursue downstream integration. Chasing margin normally ceded to marketers can greatly enhance value as it helps protect against downswings in gas prices. The strategy accelerated with the 2026 Twin Eagle acquisition announcement, transforming the firm into North America’s largest gas marketer by volume and complementing its title as the largest producer. The deal gives the firm access to most major markets through firm capacity contracts on interstate pipelines and storage assets.

Expand Energy’s production strategy is to conserve drilling resources close to where gas is needed. It also wants to be ready to capitalize on high prices when they occur. Instead of selling more gas locally, the plan is to limit gas production to the amount that can be sent through its long-distance pipelines. This should help Expand get the best prices as it awaits new LNG and infrastructure completions.

Appalachia is a prime example of this, with proximity to population centers in the Northeast with strong seasonal demand. These assets are unlikely to experience more than seasonal volume growth in the near term, with production peaking in winter and declining in summer. The region remains short on takeaway capacity but is likely to see in-basin demand growth. Expand plans to pass on in-basin power arrangements unless the deal is competitive against out-of-basin pricing. We view this as unlikely, as generators are unlikely to offer a premium substantial enough when gas is so plentiful, and producers look to place molecules.

Haynesville acreage will benefit from liquefied natural gas facilities starting up, as it is the closest basin to multiple Louisiana projects. As LNG demand ramps up, calls on Haynesville and Texas production will accelerate. In the near term, it is the only segment expected to grow, as Expand will have new pipeline capacity as an anchor shipper to Gulf Coast hubs.

Read more about Expand Energy here.

Antero Resources

• Morningstar Uncertainty Rating: High
• Morningstar Economic Moat Rating: None
• Forward Dividend Yield: 0.00%
• Industry: Oil & Gas E&P

Antero Resources is an exploration and production firm whose operations represent a pure play in the Marcellus Shale, located in northern West Virginia. This cheap stock looks 26% undervalued and has a fair value estimate of $55 per share.

Antero Resources produces natural gas in the Marcellus Shale in West Virginia. Its leaseholdings are primarily composed of land rich in natural gas liquids, which account for about a third of its production, positioning the firm well to capitalize on rising prices for ethane, propane, and butane. Overseas demand for these petrochemical feedstocks is robust, and Antero sends 50% of its NGL production to export markets. Antero also benefits from higher realized pricing as 75% of its natural gas is transported to the Gulf Coast and LNG facilities.

While higher pricing on its commodities is favorable, it also pays much higher transportation fees than its peers. Antero has suffered at times due to this produce-and-export strategy, realizing thinner operating margins when gas prices are subdued. Like all Appalachia producers, it still has infrastructure constraints. Regulators and local authorities have strongly resisted new pipeline proposals recently, resulting in numerous delays and project cancellations, which limit the ability of producers to grow production. Still, with the recent acquisition of HG Energy, it seems Antero may be pivoting to expand its in-basin gas delivery, particularly as more data centers and power generation facilities move into the region.

A statistical analysis by Rystad Energy showed that Antero lacks inventory depth relative to peers, though it still has an estimated 25 years of reserves. Limited takeaway capacity also hurts in-basin commodity prices when demand for egress is high; Antero has mitigated this risk with firm transport contracts that guarantee transport out of the basin. However, we believe Antero overcommitted to these contracts to secure better realized pricing, which hurts the firm in a low-gas-price environment. Through the early 2030s, management is looking to offload the commitments to counterparties, or simply not renew the agreements. An initial target of $300 million in savings is targeted by 2028, with up to $600 million total in the long term.

Read more about Antero Resources here.

Baker Hughes

• Morningstar Uncertainty Rating: Medium
• Morningstar Economic Moat Rating: None
• Forward Dividend Yield: 1.73%
• Industry: Oil & Gas Equipment & Services

Next on our list of the best energy stocks to buy is Baker Hughes. Following a 2022 reorganization, Baker Hughes operates in three segments: oilfield services and equipment, industrial and energy technology, and Chart Industries. The stock is trading at a 24% discount to our fair value estimate of $70 per share.

Baker Hughes was formed in 2017 through the combination of General Electric’s oil and gas segment and legacy Baker Hughes. While the merger was expensive, it created a global equipment and service powerhouse, supplying multiple solutions across the energy sector and adjacent markets.

We believe the rationale for bringing these assets together made strategic sense. The combination gives Baker Hughes a stronger footing with key global customers; it allows customers to deal with one vendor and enables the company to craft unique solutions that differentiate it from its peers. These solutions focus on meeting the world’s energy demands cost-effectively and securely while minimizing the impact of emissions.

Our Baker Hughes thesis primarily rests on the company’s industrial and energy technology segment. While Baker Hughes could rerate higher if it breaks up, we think it’s earned the right to keep its business whole as a compounder. Of all the trends that IET benefits from, perhaps none is greater than the booming growth in liquefied natural gas capacity. We believe this need will continue, given demand from fast-growing economies, the geopolitical risk Russia poses to Europe’s energy security, and energy requirements from data centers powering artificial intelligence.

Based on new liquefaction projects coming online that are either under construction or approved by well-financed sponsors, global LNG production capacity should grow by nearly 40% from 2025 to 2030. We expect Baker Hughes to win 90% of these projects, which we’ve heard typically range from $30 million to $70 million for every million tons per year awarded. Turbine sales for these facilities include a higher-margin service tail with high attachment rates that can last more than two decades.

IET is more than just an LNG story, however. It’s a market leader in advanced compression technology used to transport natural gas through pipelines, and it’s benefiting strongly from data center growth, too. We still think the acquisition of Chart Industries will strengthen its competitive position in growing markets like LNG and data centers and provide resilient income from parts and services sales, but we now view it as value-neutral.

Read more about Baker Hughes here.

Devon Energy

• Morningstar Uncertainty Rating: High
• Morningstar Economic Moat Rating: Narrow
• Forward Dividend Yield: 2.63%
• Industry: Oil & Gas E&P

Devon Energy is an oil and gas producer with acreage in several top US shale plays. Devon Energy is an affordable energy stock, trading at a 22% discount to our fair value estimate of $62 per share. The oil and gas exploration and production company earns a narrow economic moat rating.

In 2018, Devon Energy embarked on a series of shrewd capital allocation moves that included selling its EnLink Midstream interest, divesting its Canadian heavy oil, Barnett Shale, and Eagle Ford interests, and merging with WPX Energy in 2021 and Corterra in 2026. This allowed Devon to recycle cash by shedding interests that were either noncore or higher on the cost curve. Recycled cash allowed Devon to meaningfully pivot toward the Delaware and enjoy newfound exposure in the Bakken and Appalachian basins.

Today, Devon is among the lowest-cost providers on the US shale cost curve, along with Diamondback Energy and EOG Resources. Devon’s reconstituted portfolio is buoyed by its presence in the Delaware, which has some of the lowest breakeven costs among US basins. About half of the firm’s production is tied to this premier asset, which helps Devon command favorable well production relative to peers. We expect management to continue allocating capital here; it signaled that over 60% of its roughly $4.9 billion in capital expenditure will be allocated to the Delaware in 2026.

Devon is more than just a single-basin play, with a presence in several low-breakeven US shale basins: the Delaware, Williston, Anadarko, and Marcellus basins. Devon’s Marcellus exposure was gained through Corterra, lifting gas to 40% of its portfolio. But investors are pushing for more asset sales like Eagle Ford, and management has reiterated its focus on the Delaware, though the pace of those sales is unclear. Exposure to high-quality assets and operational improvements from initiatives like longer laterals should allow Devon to enjoy production growth. Importantly, we expect production gains will come at attractive drilling and completion costs.

We think Devon completed its reset with its revised capital-allocation framework in late 2020. That framework was the first to implement a fixed plus variable dividend. In 2026, Devon’s capital allocation framework calls for returning 70% of its free cash flow to shareholders. Devon announced a 33% increase to its fixed dividend, an $8 billion buyback plan, and $1.25 billion in debt retirement after the merger with Coterra.

Read more about Devon Energy here.

EQT Production Company

• Morningstar Uncertainty Rating: High
• Morningstar Economic Moat Rating: None
• Forward Dividend Yield: 1.24%
• Industry: Oil & Gas E&P

EQT is an independent natural gas production company. The stock is trading at an 18% discount to our fair value estimate of $67 per share.

EQT is primarily a natural gas producer located in the Appalachian Basin. Its operations straddle Pennsylvania, Ohio, and West Virginia. Unlike other operators in the region, 90% of EQT’s production mix comes from dry natural gas instead of higher-value products such as oil or natural gas liquids that are more prevalent in other areas of the patch. So, EQT is far more vulnerable to natural gas prices, which are extremely volatile.

EQT made a significant strategic shift to reintegrate its midstream service provider, Equitrans. With the integration, EQT has become more competitive and reduced net unit costs by 15%, mostly through gathering fee savings that would otherwise flow to an independent Equitrans. The acquisition also provided EQT with greater exposure to Gulf Coast export markets through the Mountain Valley Pipeline. At the end of 2024, EQT spun out the transmission assets and stake in the MVP into a joint venture with Blackstone, while still retaining the gathering assets that provided an improved cost structure.

With the buildout of liquefied natural gas facilities on the Gulf Coast, EQT has established LNG offtake agreements. It will purchase LNG from the production facilities and then find buyers through marketing operations. This is a new activity for the firm that can greatly enhance the value of its molecules, provided that it can efficiently place the volumes. Unlike integrated product marketing agreements, EQT will be taking the risk of marketing.

Data center demand and its impact on the US power grid could provide an additional tailwind for producers in Appalachia, since they’re adjacent to the Northeast corridor. For this to materialize, utilities must invest in gas power plants in the areas that EQT’s pipelines can access. EQT is also leveraging its midstream assets to strike direct supply deals with power generators and utilities.

Read more about EQT Production Company here.

Range Resources

• Morningstar Uncertainty Rating: High
• Morningstar Economic Moat Rating: None
• Forward Dividend Yield: 0.73%
• Industry: Oil & Gas E&P

Range Resources is an exploration and production firm whose operations represent a pure play in the Marcellus Shale, located in the Appalachian region of Southwest Pennsylvania. The stock is trading at a 17% discount to our fair value estimate of $66 per share.

Range Resources focuses on the Marcellus Shale play in southwest Pennsylvania. Natural gas accounts for over two-thirds of its production, but a portion of its acreage also yields natural gas liquids, which is a higher-value commodity set and generally linked to oil prices. In 2026, Range Resources is focused on executing a maintenance plan, with flexible growth capital spending should the market demand supply.

Range Resources was a first mover in the Marcellus Shale, and it has assembled around 750 thousand net acres in Pennsylvania, giving it an edge over other Appalachia producers that typically have patchy acreage positions. Data from Rystad Energy fully support management’s oft-repeated claim that it has a longer inventory life than its peers. Most will use up their best acreage in the next five to 10 years, forcing them to pivot to areas where well performance is typically weaker, or turn to expensive mergers and acquisitions activity. Range has a multidecade inventory, allowing it to capture gas supply and pipeline opportunities that weaker competitors cannot.

Appalachia producers have had to contend with huge swings in commodity prices in the last few years. The shale revolution delivered a wave of low-cost supply that left the US natural gas market saturated for much of the last decade. This unfavorable market was exacerbated by pipeline capacity shortages in the region, which lowered in-basin pricing for all players and forced most players to maintain extensive hedge books. Looking forward, two factors should be considered. First, exports have created relief valves for low prices. We expect LNG export capacity to grow to 25% of US production from 15%. This creates a substantial market for US gas, with abundant inventory, incentivizing exports that have rarely, if ever, existed in the US market. Second, in-basin demand is projected to grow substantially due to new power demand. Data centers are constant consumers who pay for supply certainty and can be supplied cheaply if colocated with a producer’s infrastructure. Firms with ample drilling inventory and marketing agreements for flow assurance, like Range, should benefit from the robust demand outlook.

Read more about Range Resources here.

Enbridge

• Morningstar Uncertainty Rating: Medium
• Morningstar Economic Moat Rating: Narrow
• Forward Dividend Yield: 5.69%
• Industry: Oil & Gas Midstream

Midstream oil and gas company Enbridge rounds out our list of best energy stocks to buy. Enbridge owns extensive midstream assets that transport hydrocarbons across the US and Canada. The stock is 9% undervalued relative to our fair value estimate of $54 per share.

After completing the acquisition of three regional utilities, Enbridge has a highly diversified midstream platform with many productive avenues to deploy capital.

Enbridge’s narrow-moat gas transmission segment is attracting the most capital, with multiple projects in various stages of completion. Its largest projects include expansions of the Westcoast pipeline in British Columbia and an associated liquefied natural gas project. The firm expects these projects will be completed in 2027 and 2028. It’s also developing smaller buildouts in the US. Demand for gas infrastructure looks increasingly constructive in both the US and Canada, as new power and LNG demand continues to grow. Canada may provide additional opportunities for the Westcoast franchise; new LNG development will be supported by increasing associated gas from oil production, which it will be driving by providing new oil pipeline capacity.

Gas distribution houses utilities. Enbridge is building out infrastructure in its US assets acquired from Dominion and modernizing operations in the segment. The company sees population growth and a shifting power generation mix as growth investment opportunities for gas distribution. Historically, segment returns have lagged the broader company’s returns, but a new rate settlement in Canada and higher returns offered by US operations place it on better footing going forward.

New projects in the liquids pipelines segment will shore up Enbridge’s asset position. Of these projects, the most notable is the Mainline, which transports crude oil from Canada to the US Gulf Coast. Enbridge is incrementally expanding the Mainline as it expects Canadian crude production to grow. Two further phases are envisioned, one which we view as likely while awaiting more concrete details on the other. Smaller investments in the Houston terminal will also boost export capacity, which we see as a strength of the business. Overall, we view investment in the segment favorably, but we expect projects there will be incremental and opportunistic.

Read more about Enbridge here.

How to Find More of the Best Energy Stocks to Buy

Investors who’d like to extend their search for top energy stocks can do the following:

• Review Morningstar’s comprehensive list of energy stocks to investigate further.
• Stay up to date on the energy sector’s performance, key earnings reports, and more with Morningstar’s energy sector page.
• Read Morningstar’s Guide to Stock Investing to learn how our approach to investing can inform your stock-picking process.
• Use the Morningstar Investor screener to build a shortlist of energy stocks to research and watch.