Market Overview - The current market environment is characterized by changing global supply, demand, and investor sentiment, with precious metals leading gains alongside industrial metals, as indicated by a 10% increase in the Bloomberg Commodity Index (BCOM) as of November 19, 2025 [2] - Four out of six BCOM sectors reported gains in Q3, while petroleum rose by 4%, with grains and energy sectors being exceptions [2] - China's major commodity imports eased in October, with iron ore showing resilience despite declines in crude oil, natural gas, and coal [3] - The World Bank's Commodity Markets Outlook predicts a 7% decline in global commodity prices in 2026 due to subdued economic activity, trade tensions, and excess oil supplies, while precious metals are expected to grow by 5% [4] LNG Supply Growth - Global LNG supply is projected to grow by 10.2% in 2026, driven by U.S. expansions, with capacity expected to rise to 130 million tons in 2026 from 90 million tons in 2024 [5] Investment Strategy - The list of the 12 best commodity stocks is curated based on hedge fund interest, utilizing data from Insider Monkey's hedge fund database, which tracks 983 stocks as of Q2 2025 [8] - Research indicates that imitating top stock picks of leading hedge funds can lead to market outperformance [9] Company Highlights Air Products and Chemicals, Inc. (NYSE:APD) - Air Products and Chemicals, Inc. is among the top commodity stocks, with 53 hedge fund holders [11] - The company reported Q4 FY25 EPS of $3.39, slightly above the forecast of $3.38, with a full-year EPS of $12.03, down 3% year-over-year [13] - Management highlighted a focus on cost-reset strategies, including a 16% workforce reduction, and stable operating margins at 23.7% [13] - The NEOM green hydrogen project is nearly 90% complete, with expectations for ammonia output in 2027 [14] EOG Resources, Inc. (NYSE:EOG) - EOG Resources, Inc. also has 53 hedge fund holders and maintained a price target of $145 with a "Buy" rating [16] - The company reported Q3 net income of $1.5 billion and free cash flow of $1.4 billion, with adjusted EPS of $2.71 [17] - EOG returned $1 billion to shareholders through dividends and repurchases, with regular dividend payments increasing by 8% year-over-year [18] - The company raised its free cash flow guidance to $4.5 billion, ending the quarter with $3.5 billion in cash [19] The Mosaic Company (NYSE:MOS) - The Mosaic Company has 54 hedge fund holders and received a "Buy" rating from Goldman Sachs, with a lowered price target from $37 to $33 [21][22] - The company reported Q3 net income of $411 million, up from $122 million year-over-year, and adjusted EBITDA of $806 million [23] - Mosaic aims to achieve $250 million in cost savings by 2026, having already recorded $150 million in reductions [25]

Core Insights - U.S. Energy Corporation reported operational progress in Q3 2025, particularly in advancing its Montana industrial gas project, with a focus on upstream development, infrastructure, and carbon management [2][3] - The company aims to unlock new revenue streams through the construction of a gas processing facility and carbon initiatives, enhancing oil recovery and maximizing value realization [2][3] Upstream Development - The company drilled two additional industrial gas wells in Q3 2025, totaling three high-deliverability wells in the Duperow Formation, achieving a combined peak rate of 12.2 million cubic feet per day (MMcf/d) [7] - The wells have a composition of approximately 0.5% helium and 85% CO₂, with flows restricted to preserve reservoir value until infrastructure is operational [7] Infrastructure Development - The design for the initial gas processing facility is complete, with construction expected to begin in early 2026 [7] - The company acquired 80 acres in Toole County, MT for $240,000 to serve as the facility site, with construction of the infill gathering system scheduled for early 2026 [7] Carbon Management Initiatives - The company submitted an EPA Monitoring, Reporting, and Verification (MRV) plan in October 2025, with approval anticipated by Spring-Summer 2026, enabling the capture of federal carbon credits [7] - The company is progressing with near-term enhanced oil recovery (EOR) projects using recycled CO₂ on legacy oil assets [7] Financial Results - U.S. Energy reported total hydrocarbon production of approximately 35,326 barrels of oil equivalent (BOE) in Q3 2025, with total oil and gas sales of approximately $1.7 million, down from $5.0 million in Q3 2024 [13] - Lease operating expenses (LOE) for Q3 2025 were approximately $1.0 million, or $29.36 per BOE, compared to $3.1 million, or $28.95 per BOE, in the prior year [14] - The company reported a net loss of $3.3 million, or a loss of $0.10 per diluted share, in Q3 2025, compared to an adjusted EBITDA of ($1.3) million [16][24] Resource Report - An industrial gas resource report indicated 1.28 billion cubic feet (BCF) of net helium resources and 443.8 BCF of net CO₂ resources in the Kevin Dome asset [8] - The report reflects gas concentrations of 0.4% - 0.5% helium and 84% - 85% CO₂, consistent with the company's recent development activities [8] Balance Sheet and Liquidity - As of September 30, 2025, U.S. Energy had approximately $11.4 million in available liquidity, providing flexibility for growth initiatives [10] - The company ended the third quarter with a cash balance of $1.4 million and no outstanding debt [10][11]

Investment Opportunities - Karnataka is attracting new investments from Japanese companies, including Air Water Inc., Shinko Nameplate, and Catalar, which are interested in expanding their operations in Bengaluru [1][4] - Air Water plans to establish a second industrial gas production unit near Bengaluru and a biogas production facility utilizing cow dung and iron pulp as feedstock [2] - Shinko Nameplate intends to invest ₹100 crore in a new plant for manufacturing decorative plastic components for vehicles near Bengaluru [3] - Catalar aims to enhance its operations in the Bidadi facility with an additional investment of ₹140 crore by 2030 [3] Strategic Partnerships - Konoike, an industrial services and engineering company, is exploring joint venture opportunities in India as part of its strategy to establish India as its "second home base" [4]