10 Best Energy Moat Stocks for November 2025
Welcome to the Value Sense Blog, your resource for insights on the stock market! At Value Sense, we focus on intrinsic value tools and offer stock ideas with undervalued companies. Dive into our research products and learn more about our unique approach at valuesense.io
Explore diverse stock ideas covering technology, healthcare, and commodities sectors. Our insights are crafted to help investors spot opportunities in undervalued growth stocks, enhancing potential returns. Visit us to see evaluations and in-depth market research.
Market Overview & Selection Criteria
The current market landscape is characterized by heightened volatility, sector rotation, and a renewed focus on fundamental quality. Our selection methodology leverages ValueSense’s proprietary intrinsic value tools, blending discounted cash flow and peer-relative models to identify stocks trading below their fair value[1][4]. Each pick is screened for robust free cash flow, attractive return on invested capital (ROIC), and sector diversification. We prioritize companies with strong financial health, sustainable margins, and clear growth catalysts, while also considering risk factors such as debt levels and recent performance trends[2][3].
Featured Stock Analysis
Stock #1: MPLX LP (MPLX)
| Metric | Value |
|---|---|
| Market Cap | $51.8B |
| Quality Rating | 7.2 |
| Intrinsic Value | $99.7 |
| 1Y Return | 18.8% |
| Revenue | $11.3B |
| Free Cash Flow | $5,224.0M |
| Revenue Growth | 2.2% |
| FCF margin | 46.3% |
| Gross margin | 44.0% |
| ROIC | 17.8% |
| Total Debt to Equity | 154.6% |
Investment Thesis
MPLX LP stands out as a midstream energy leader with a market cap of $51.8B and a ValueSense quality rating of 7.2. The company’s intrinsic value is estimated at $99.7, suggesting significant upside potential. MPLX’s robust free cash flow $5,224M and high FCF margin 46.3% reflect operational efficiency. Despite modest revenue growth 2.2%, its gross margin 44.0% and ROIC 17.8% signal disciplined capital allocation and profitability. The 1-year return of 18.8% demonstrates resilience in a challenging energy market.
Key Catalysts
- Stable cash flows from long-term contracts
- Expansion in natural gas infrastructure
- Attractive yield for income-focused investors
- Potential for further margin improvement
Risk Factors
- Elevated total debt to equity 154.6%
- Sensitivity to commodity price fluctuations
- Regulatory changes impacting pipeline operations
Stock #2: Texas Pacific Land Corporation (TPL)
| Metric | Value |
|---|---|
| Market Cap | $21.7B |
| Quality Rating | 6.0 |
| Intrinsic Value | $288.4 |
| 1Y Return | -18.9% |
| Revenue | $742.9M |
| Free Cash Flow | $93.8M |
| Revenue Growth | 10.7% |
| FCF margin | 12.6% |
| Gross margin | 89.6% |
| ROIC | 63.6% |
| Total Debt to Equity | 0.0% |
Investment Thesis
Texas Pacific Land Corporation is a unique play in land and royalty management, with a $21.7B market cap and a ValueSense rating of 6.0. Its intrinsic value $288.4 far exceeds current trading levels, indicating undervaluation. TPL boasts an exceptional gross margin 89.6% and industry-leading ROIC 63.6%, reflecting its asset-light model and high profitability. Despite a negative 1-year return -18.9%, the company’s revenue growth 10.7% and zero debt position offer stability.
Key Catalysts
- Rising demand for land and water rights in energy-rich regions
- Expansion of royalty streams from oil and gas production
- Pristine balance sheet with no debt
Risk Factors
- Revenue sensitivity to energy sector cycles
- Limited diversification outside land royalties
- Potential regulatory headwinds
Stock #3: Western Midstream Partners, LP (WES)
| Metric | Value |
|---|---|
| Market Cap | $14.3B |
| Quality Rating | 7.0 |
| Intrinsic Value | $84.8 |
| 1Y Return | 3.9% |
| Revenue | $3,671.3M |
| Free Cash Flow | $2,088.1M |
| Revenue Growth | 7.1% |
| FCF margin | 56.9% |
| Gross margin | 74.6% |
| ROIC | 15.4% |
| Total Debt to Equity | 210.0% |
Investment Thesis
Western Midstream Partners, LP, with a $14.3B market cap and a ValueSense rating of 7.0, is a core holding for energy infrastructure exposure. Its intrinsic value $84.8 and strong free cash flow $2,088.1M highlight financial strength. WES’s FCF margin 56.9% and gross margin 74.6% are among the highest in the sector, supporting stable distributions. The 1-year return of 3.9% reflects steady performance amid sector volatility.
Key Catalysts
- Strategic asset base in key U.S. energy regions
- Long-term contracts with major producers
- Opportunities for organic and M&A-driven growth
Risk Factors
- High total debt to equity 210.0%
- Exposure to volume-driven revenue fluctuations
- Regulatory and environmental risks
Stock #4: APA Corporation (APA)
| Metric | Value |
|---|---|
| Market Cap | $8,199.3M |
| Quality Rating | 6.6 |
| Intrinsic Value | $46.0 |
| 1Y Return | -3.0% |
| Revenue | $10.1B |
| Free Cash Flow | $1,634.0M |
| Revenue Growth | 12.1% |
| FCF margin | 16.2% |
| Gross margin | 55.1% |
| ROIC | 22.9% |
| Total Debt to Equity | 67.6% |
Investment Thesis
APA Corporation, with a market cap of $8.2B and a ValueSense rating of 6.6, is positioned for cyclical recovery. Its intrinsic value $46.0 and solid free cash flow $1,634.0M underscore value potential. APA’s revenue growth 12.1% and ROIC 22.9% reflect operational improvements. The company’s gross margin 55.1% and moderate debt to equity 67.6% support financial flexibility, despite a 1-year return of -3.0%.
Key Catalysts
- International asset diversification
- Upside from commodity price recovery
- Cost discipline and capital efficiency
Risk Factors
- Exposure to oil price volatility
- Geopolitical risks in international markets
- Environmental regulation impacts
Stock #5: Matador Resources Company (MTDR)
| Metric | Value |
|---|---|
| Market Cap | $4,919.4M |
| Quality Rating | 6.3 |
| Intrinsic Value | $112.9 |
| 1Y Return | -23.5% |
| Revenue | $3,818.7M |
| Free Cash Flow | $976.9M |
| Revenue Growth | 14.6% |
| FCF margin | 25.6% |
| Gross margin | 76.8% |
| ROIC | 20.2% |
| Total Debt to Equity | 29.8% |
Investment Thesis
Matador Resources Company, with a $4.9B market cap and a ValueSense rating of 6.3, offers exposure to U.S. shale growth. Its intrinsic value $112.9 points to deep value, while revenue growth 14.6% and ROIC 20.2% highlight operational strength. Despite a negative 1-year return -23.5%, Matador’s gross margin 76.8% and low debt to equity 29.8% suggest resilience.
Key Catalysts
- Expansion in the Permian Basin
- Efficiency gains in drilling operations
- Potential for margin recovery
Risk Factors
- Commodity price risk
- Volatility in drilling activity
- Environmental and regulatory pressures
Stock #6: Hess Midstream LP (HESM)
| Metric | Value |
|---|---|
| Market Cap | $4,135.1M |
| Quality Rating | 6.8 |
| Intrinsic Value | $127.4 |
| 1Y Return | 1.6% |
| Revenue | $1,568.0M |
| Free Cash Flow | $666.4M |
| Revenue Growth | 9.0% |
| FCF margin | 42.5% |
| Gross margin | 81.2% |
| ROIC | 25.5% |
| Total Debt to Equity | 731.8% |
Investment Thesis
Hess Midstream LP, with a $4.1B market cap and a ValueSense rating of 6.8, is a high-margin midstream operator. Its intrinsic value $127.4 and strong free cash flow $666.4M support attractive distributions. HESM’s gross margin 81.2% and ROIC 25.5% are sector-leading, though its debt to equity 731.8% is notably high. The 1-year return of 1.6% reflects stability.
Key Catalysts
- Strategic partnerships with upstream operators
- Expansion of midstream infrastructure
- Consistent cash flow generation
Risk Factors
- Very high leverage
- Sensitivity to throughput volumes
- Regulatory and environmental risks
Stock #7: Enphase Energy, Inc. (ENPH)
| Metric | Value |
|---|---|
| Market Cap | $3,990.6M |
| Quality Rating | 6.2 |
| Intrinsic Value | $33.0 |
| 1Y Return | -63.3% |
| Revenue | $1,512.4M |
| Free Cash Flow | $217.3M |
| Revenue Growth | 21.0% |
| FCF margin | 14.4% |
| Gross margin | 48.3% |
| ROIC | 23.1% |
| Total Debt to Equity | 63.5% |
Investment Thesis
Enphase Energy, Inc., with a $4.0B market cap and a ValueSense rating of 6.2, is a technology-driven solar solutions provider. Its intrinsic value $33.0 and double-digit revenue growth 21.0% highlight innovation. Despite a steep 1-year decline -63.3%, Enphase maintains a solid gross margin 48.3% and ROIC 23.1%. The company’s moderate debt to equity 63.5% supports ongoing R&D investment.
Key Catalysts
- Growth in residential solar adoption
- Expansion into energy storage markets
- Technological leadership in microinverters
Risk Factors
- Intense competition in solar technology
- Sensitivity to policy changes
- Volatility in component supply chains
Stock #8: Black Stone Minerals, L.P. (BSM)
| Metric | Value |
|---|---|
| Market Cap | $2,792.2M |
| Quality Rating | 5.9 |
| Intrinsic Value | $26.0 |
| 1Y Return | -6.1% |
| Revenue | $376.7M |
| Free Cash Flow | $223.2M |
| Revenue Growth | (6.1%) |
| FCF margin | 59.2% |
| Gross margin | 74.1% |
| ROIC | 22.8% |
| Total Debt to Equity | 9.0% |
Investment Thesis
Black Stone Minerals, L.P., with a $2.8B market cap and a ValueSense rating of 5.9, is a leading mineral and royalty owner. Its intrinsic value $26.0 and high FCF margin 59.2% support stable distributions. Despite a negative 1-year return -6.1% and declining revenue growth -6.1%, BSM’s gross margin 74.1% and low debt to equity 9.0% provide financial stability.
Key Catalysts
- Expansion of royalty interests
- Stable cash flows from diversified assets
- Low leverage enhances flexibility
Risk Factors
- Revenue decline due to lower production
- Commodity price exposure
- Limited growth outside core assets
Stock #9: Mach Natural Resources LP (MNR)
| Metric | Value |
|---|---|
| Market Cap | $1,420.0M |
| Quality Rating | 6.4 |
| Intrinsic Value | $30.5 |
| 1Y Return | -20.1% |
| Revenue | $1,046.5M |
| Free Cash Flow | $323.0M |
| Revenue Growth | 20.3% |
| FCF margin | 30.9% |
| Gross margin | 49.4% |
| ROIC | 26.2% |
| Total Debt to Equity | 35.4% |
Investment Thesis
Mach Natural Resources LP, with a $1.4B market cap and a ValueSense rating of 6.4, offers exposure to natural resource development. Its intrinsic value $30.5 and strong revenue growth 20.3% highlight operational momentum. Despite a negative 1-year return -20.1%, MNR’s FCF margin 30.9% and ROIC 26.2% indicate efficient capital deployment.
Key Catalysts
- Growth in natural gas and oil production
- Expansion of resource base
- Operational efficiency improvements
Risk Factors
- Commodity price volatility
- Limited scale compared to peers
- Environmental and regulatory risks
Stock #10: Natural Resource Partners L.P. (NRP)
| Metric | Value |
|---|---|
| Market Cap | $1,361.1M |
| Quality Rating | 6.6 |
| Intrinsic Value | $142.8 |
| 1Y Return | 10.9% |
| Revenue | $219.5M |
| Free Cash Flow | $200.4M |
| Revenue Growth | (24.5%) |
| FCF margin | 91.3% |
| Gross margin | 98.3% |
| ROIC | 38.2% |
| Total Debt to Equity | 17.2% |
Investment Thesis
Natural Resource Partners L.P., with a $1.4B market cap and a ValueSense rating of 6.6, is a diversified resource owner. Its intrinsic value $142.8 and exceptional FCF margin 91.3% highlight cash generation. NRP’s gross margin 98.3% and ROIC 38.2% are industry-leading, supporting a 1-year return of 10.9%. Despite declining revenue growth -24.5%, the company’s low debt to equity 17.2% ensures stability.
Key Catalysts
- Expansion of mineral and royalty assets
- Strong cash flow supports distributions
- Low leverage enhances resilience
Risk Factors
- Revenue decline from lower production
- Commodity price exposure
- Limited growth outside core assets
Portfolio Diversification Insights
This watchlist spans energy infrastructure, land royalties, technology, and natural resources, providing sector diversification and exposure to both growth and income themes. The mix of midstream operators, royalty owners, and technology innovators helps balance cyclical risk and cash flow stability. High ROIC and FCF margins across several picks support portfolio resilience, while varying debt levels and sector allocations mitigate concentration risk.
Market Timing & Entry Strategies
Given current market volatility, staggered entry strategies such as dollar-cost averaging or sector rotation may help manage risk. Monitoring intrinsic value gaps and technical support levels can inform entry points. Investors may consider timing positions around earnings releases, macroeconomic events, or sector inflection points, using ValueSense’s charting and backtesting tools for added insight[1][2][7].
Explore More Investment Opportunities
For investors seeking undervalued companies with high fundamental quality, our analytics team provides curated stock lists:
📌 50 Undervalued Stocks (Best overall value plays for 2025)
📌 50 Undervalued Dividend Stocks (For income-focused investors)
📌 50 Undervalued Growth Stocks (High-growth potential with strong fundamentals)
🔍 Check out these stocks on the Value Sense platform for free!
More Articles You Might Like
- How VKTX (Viking Therapeutics) Makes Money in 2025: A Deep-Dive With Income Statement
- How NET (Cloudflare) Makes Money in 2025: A Deep-Dive With Income Statement
- How MASS (908 Devices) Makes Money in 2025: A Deep-Dive With Income Statement
- How CRVO (CervoMed) Makes Money in 2025: A Deep-Dive With Income Statement
- How GILD (Gilead Sciences) Makes Money in 2025: A Deep-Dive With Income Statement
FAQ Section
Q1: How were these stocks selected?
Stocks were chosen using ValueSense’s proprietary intrinsic value models, focusing on companies trading below fair value, with strong free cash flow, high ROIC, and sector diversification[1][2].
Q2: What's the best stock from this list?
Each stock offers unique strengths; for example, Texas Pacific Land Corporation (TPL) stands out for its asset-light model and high ROIC, while MPLX LP excels in cash flow generation. The “best” depends on individual investment goals and risk tolerance.
Q3: Should I buy all these stocks or diversify?
Diversification across sectors and business models can help manage risk. This watchlist is designed to provide exposure to energy, technology, and resource sectors, supporting a balanced portfolio.
Q4: What are the biggest risks with these picks?
Key risks include commodity price volatility, high leverage in some midstream operators, regulatory changes, and sector-specific headwinds. Each stock’s risk profile is detailed in its individual analysis.
Q5: When is the best time to invest in these stocks?
Market timing can be optimized by monitoring intrinsic value gaps, earnings releases, and sector trends. ValueSense’s charting and backtesting tools can help identify favorable entry points[1][2][7].