Goldman Sachs Names 3 ‘Strong Buy’ Energy Stocks with Room to Run

Viper Energy - Viper acquired Sitio Royalties in an all-equity transaction in August, integrating the new assets into its operations during 3Q25 [1] - The company focuses on providing attractive shareholder returns by acquiring mineral and royalty assets in the Permian basin [2] - Viper is a subsidiary of Diamondback Energy, which operates its assets, creating a mutually beneficial relationship [3] - Viper's business model is designed to sustain free cash flow with low capital demands [4] - In 3Q25, Viper reported an adjusted net income of $0.40 per share, with $53 million in cash and liquid assets [9] - Viper pays a regular dividend of $0.33 per share, with a variable dividend increasing the yield to 5.2% [8] - Analysts have a Strong Buy consensus rating for Viper, with a price target of $54 indicating a potential upside of 22% [10] Cheniere Energy - Cheniere Energy operates in the midstream sector, converting natural gas into LNG for export [11] - The company has significant liquefaction facilities, including Sabine Pass and Corpus Christi, capable of processing billions of cubic feet of natural gas daily [12] - 95% of Cheniere's LNG production capacity is contracted through long-term agreements, providing stable revenue [14] - In 3Q25, Cheniere reported revenue of $4.4 billion, an 18% year-over-year increase, with a GAAP EPS of $4.75 beating forecasts [15] - Analysts view Cheniere's contracted asset base as undervalued, with a Buy rating and a price target of $275 suggesting a 24.5% upside [16] Pacific Gas & Electric (PG&E) - PG&E is an investor-owned utility providing natural gas and electricity to northern California [17] - The company faced regulatory changes that lowered its return on equity to 9.98%, impacting its profitability [18] - PG&E settled a $100 million shareholder action related to past wildfire incidents, which is seen as a step towards resolving claims [19] - In 4Q25, PG&E reported revenues of $6.8 billion, a 2.6% year-over-year increase, but missed forecasts [20] - Analysts believe PG&E has substantial valuation upside, with a Buy rating and a price target of $22 indicating a potential 21% upside [21]