Best Oil Stocks to Buy Now: Premium Picks for Energy Growth Investors

The energy sector presents compelling opportunities for investors seeking both income and capital appreciation. While recent years have seen energy stocks trade sideways compared to the broader market, the fundamental demand for oil, natural gas, and energy infrastructure remains robust. Here’s my analysis of three exceptional companies positioned to deliver strong returns through the coming decade—making them among the best oil stocks to buy right now.

The Energy Investment Landscape

Energy remains foundational to global economic growth, despite near-term sector headwinds. The average energy stock returned only about 4% year-to-date at the time this analysis was conducted, lagging the broader market’s 18% appreciation. However, this underperformance masks significant opportunity. As power demand accelerates—particularly in developed economies—energy infrastructure companies face increasing investment requirements and growing revenue streams. This backdrop makes selective stock picking essential for capturing the sector’s full potential.

ConocoPhillips: Generating Exceptional Free Cash Flow

ConocoPhillips (NYSE: COP) stands out as a premier oil and gas producer with one of the industry’s most efficient cost structures. The company operates one of the deepest and most diversified asset portfolios in upstream energy.

The financial picture is compelling. ConocoPhillips requires an average crude oil price in the mid-$40s per barrel to fund ongoing capital spending, and roughly $10 additional per barrel to maintain its current dividend. With crude trading in the low $60s, the company generates substantial surplus cash. This dynamic improves dramatically in the coming years as cost-saving initiatives from last year’s transformational Marathon Oil merger take effect.

Looking ahead to 2029, management expects incremental annual free cash flow of approximately $6 billion from three large-scale liquefied natural gas projects and completion of the Willow oil development in Alaska. That $6 billion represents a meaningful boost relative to the $6.1 billion free cash flow the company generated over the first nine months of the most recent fiscal year.

This expanding cash generation creates multiple return paths for shareholders. The company currently yields 3.4%, recently raised its payout by 8%, and aims to deliver dividend increases within the S&P 500’s top 10% going forward. Beyond dividends, management intends to continue share repurchases, creating a dual-engine return mechanism. This cash-return combination positions ConocoPhillips among the best oil stocks for delivering robust total shareholder returns.

Oneok: Predictable Growth Through Strategic Consolidation

Oneok (NYSE: OKE) represents a different investment profile—a major energy midstream platform generating highly stable cash flows. The business model relies on long-term contracts and government-regulated rate structures, creating a earnings foundation less vulnerable to commodity price swings than pure exploration and production companies.

The recent strategic expansion trajectory enhances this platform meaningfully. The 2023 Magellan Midstream Partners acquisition expanded Oneok into crude oil and refined products logistics. Last year, the company deployed $5.9 billion acquiring Medallion Midstream and a controlling stake in EnLink, followed by an additional $4.3 billion to secure full EnLink ownership earlier this year.

Management projects capturing hundreds of millions in cost synergies and operational efficiencies from this consolidation over the medium term. Beyond acquisition integration, Oneok has sanctioned multiple organic growth initiatives, including the Texas City Logistics Export Terminal and the Eiger Express Pipeline, both expected to enter service by mid-2028.

Oneok’s current 5.6% dividend yield already ranks as one of the sector’s most attractive. The company targets annual dividend increases of 3-4%, supported by both acquisition synergies and organic project returns. For income-focused investors seeking best-in-class energy stocks to buy now, Oneok deserves serious consideration given the combination of high current yield and visible growth catalysts.

NextEra Energy: Capturing the Clean Energy Transition

NextEra Energy (NYSE: NEE) operates a dual-platform model that sets it apart from traditional oil and gas companies. Its Florida-based utility generates steadily rising rate-regulated earnings, while its separate energy resources platform develops renewable and natural gas infrastructure backed by long-term contracts and regulated returns.

Capital intensity remains elevated, reflecting the sector’s infrastructure replacement cycle. NextEra’s Florida utility alone plans to invest over $100 billion through 2032 supporting the state’s rising electricity demand. Simultaneously, the energy resources platform is deploying billions in transmission expansion, gas pipeline development, and clean power projects.

These investments support management’s guidance for compound annual earnings-per-share growth exceeding 8% over the coming decade. That earnings momentum, combined with a 2.8% current dividend yield, creates the platform for planned 10% dividend growth next year, followed by 6% compound annual increases through at least 2028.

While NextEra Energy differs from traditional oil stocks, it deserves inclusion among the best energy stocks to buy now because it captures the dual megatrends of rising electricity demand and clean energy development. The earnings and income growth combination positions the company to deliver substantial long-term returns.

The Investment Case: Why These Companies Matter

These three companies collectively demonstrate why energy investors can build meaningful wealth. ConocoPhillips provides leveraged exposure to commodity cash flow expansion. Oneok delivers recession-resistant contracted revenues with meaningful growth catalysts. NextEra Energy captures infrastructure investment themes spanning both traditional energy and renewable development.

Each company currently returns capital to shareholders through dividends and buybacks, generating the income component that drives many investment returns. More importantly, each has clearly articulated growth drivers extending years into the future—specific projects, contract renewals, and earnings expansion that justify reinvestment of corporate cash flow.

For investors seeking to build a portfolio with both immediate income and long-term appreciation potential, these represent best-in-class choices within the energy sector. The combination of visible growth, manageable valuations, and attractive yields makes them compelling energy stocks to buy right now.