The oil and gas sector remains a crucial component of the U.S. economy and global energy infrastructure. Despite the push toward renewable energy, fossil fuels continue to play a key role in powering industries, transportation, and households. In times of economic volatility and geopolitical tensions, oil and gas stocks often deliver solid returns, making them an attractive investment for both income seekers and growth-focused investors. Here’s a look at the 10 best-performing oil and gas stocks that continue to stand out in the U.S. stock market for their resilience, profitability, and long-term value.

1. ExxonMobil Corporation (XOM) – Industry Giant with Global Reach

ExxonMobil continues to be one of the top-performing oil and gas stocks in the U.S. Known for its integrated operations that span upstream, midstream, and downstream sectors, ExxonMobil benefits from diversified revenue streams. The company has remained profitable through fluctuating oil prices and economic cycles.

In recent years, ExxonMobil has increased investment in carbon capture technology and liquefied natural gas (LNG), demonstrating its long-term sustainability strategy. Its dividend yield and strong balance sheet also make it a favorite among long-term investors.

Key performance drivers:

• Integrated oil and gas operations
• Strong dividend yield and shareholder returns
• Focus on LNG and low-carbon initiatives
• Global supply chain and refining capabilities

2. Chevron Corporation (CVX) – Dividend King with Strong Fundamentals

Chevron is one of the most stable energy stocks on the market, with decades of consistent dividend payments and prudent capital allocation. It has outperformed many of its peers due to disciplined cost management and a strong upstream portfolio.

Chevron’s expanding presence in the Permian Basin and its international LNG projects provide growth potential. It also focuses on renewable energy investments and carbon reduction efforts while maintaining a solid oil and gas foundation.

Why Chevron stands out:

• Consistent and growing dividends
• Strong cash flow and low debt levels
• Significant assets in the Permian Basin
• Investment in alternative energy and decarbonization

3. EOG Resources (EOG) – Premier U.S. Shale Producer

EOG Resources has earned a reputation for being one of the most efficient and profitable shale oil producers in the U.S. With a strong presence in the Permian, Eagle Ford, and Powder River Basin, EOG combines low-cost operations with innovation in drilling technology.

The company maintains a disciplined capital strategy and delivers strong free cash flow. EOG’s ability to produce high volumes at low break-even prices makes it a top performer in the oil and gas space.

Performance highlights:

• Strong portfolio in U.S. shale plays
• High free cash flow and return on capital
• Technological leadership in drilling and fracking
• Attractive shareholder return program

4. ConocoPhillips (COP) – Balanced Growth and Stability

ConocoPhillips is known for its upstream operations and global exploration portfolio. The company’s strategic acquisitions and focus on low-cost production have allowed it to remain competitive even during periods of price volatility.

Its investments in LNG and natural gas development support long-term demand trends, particularly in Asia. ConocoPhillips also emphasizes capital discipline, making it a reliable option for growth and income investors alike.

Reasons for strong performance:

• Diversified upstream asset base
• Low-cost production focus
• Global LNG and natural gas projects
• Prudent financial and capital management

5. Pioneer Natural Resources (PXD) – Permian Powerhouse

Pioneer Natural Resources is a major player in the Permian Basin, producing oil and natural gas through horizontal drilling and hydraulic fracturing. Its low-cost operations and strategic acquisitions have propelled it into the spotlight as a best-in-class operator.

Pioneer focuses heavily on returning capital to shareholders through variable dividends and buybacks. Its strong production metrics and operational efficiency make it a go-to choice for investors focused on U.S. shale growth.

What sets Pioneer apart:

• Strong position in the Permian Basin
• Low operating costs and high margins
• Shareholder-friendly capital return strategy
• Efficient drilling and production practices

6. Marathon Petroleum Corporation (MPC) – Refining and Midstream Strength

Marathon Petroleum is one of the largest refiners in the U.S., with a wide network of refineries, pipelines, and terminals. Its refining margins have been robust due to tight fuel supplies and rising demand, helping it deliver strong earnings.

MPC’s focus on midstream assets through its subsidiary MPLX also offers stable, recurring revenue. The company is active in share repurchases and maintains a solid dividend, attracting both growth and income investors.

Strong performance factors:

• Leadership in U.S. refining operations
• Diversified midstream asset base
• Aggressive share repurchase program
• Reliable dividend payments

7. Devon Energy Corporation (DVN) – High-Yielding U.S. Shale Player

Devon Energy has emerged as a top dividend-paying stock in the oil and gas industry. Its variable dividend model, linked to free cash flow, has been popular among investors seeking income. Devon’s assets are concentrated in low-cost, high-output basins like the Delaware Basin.

The company’s efficient production, disciplined capital spending, and shareholder-first philosophy have positioned it as one of the sector’s best performers.

Why Devon is thriving:

• Variable dividend structure rewarding shareholders
• Focus on high-return U.S. shale assets
• Low capital expenditure and high output efficiency
• Strong commitment to financial discipline

8. Occidental Petroleum (OXY) – Value Recovery and Carbon Strategy

Occidental has made an impressive comeback in recent years, driven by strong oil prices, cost-cutting measures, and a renewed focus on shareholder returns. It gained attention following major investments by Berkshire Hathaway and its strategic acquisitions in the Permian Basin.

Oxy is also leading in carbon capture technology with its Oxy Low Carbon Ventures division. Its combination of strong asset performance and sustainability investments appeals to both value and environmentally conscious investors.

Oxy’s key growth areas:

• High-impact Permian Basin assets
• Backing from institutional investors
• Innovative carbon capture technology
• Improving balance sheet and shareholder returns

9. Hess Corporation (HES) – Exploration Success Story

Hess has become a standout in oil exploration, particularly due to its offshore projects in Guyana. Its partnership with ExxonMobil in this region has turned into one of the most prolific oil discoveries in recent history, significantly boosting its production outlook.

Hess balances its exploration success with solid U.S. onshore assets, including operations in the Bakken shale. Its growth potential, combined with improving financials, makes it one of the best-performing exploration-focused stocks.

What’s driving Hess forward:

• Significant oil discoveries in Guyana
• Partnership with ExxonMobil for offshore drilling
• Balanced asset portfolio with U.S. shale exposure
• Strong production growth outlook

10. Kinder Morgan Inc. (KMI) – Midstream Infrastructure Leader

Kinder Morgan is one of the largest energy infrastructure companies in North America. It operates thousands of miles of pipelines that transport natural gas, crude oil, and refined products. The company generates steady cash flow through long-term transportation contracts.

Its focus on dividends, financial discipline, and expansion into renewable natural gas make it a strong performer among midstream stocks. Investors looking for income and lower volatility in the energy sector continue to favor KMI.

Why Kinder Morgan excels:

• Extensive pipeline and terminal network
• Steady, contract-based cash flow
• Attractive dividend yield
• Investment in renewable and low-carbon energy solutions

Conclusion

The best-performing oil and gas stocks in the U.S. combine operational efficiency, strong asset portfolios, and strategic capital allocation. From upstream producers to midstream infrastructure leaders and refiners, these companies are thriving due to solid fundamentals and adaptive strategies. Whether you're seeking dividend income, growth potential, or exposure to energy markets, these stocks represent some of the most attractive investment opportunities in the sector. Their consistent performance and resilience make them valuable additions to a well-diversified portfolio.