M&A Momentum: Three Energy Stocks from Josh Brown’s List Surge Ahead

Josh — Last week, natural‑gas producer EQT (EQT) agreed to buy Range Resources (RRC) in a roughly $13 billion all‑stock deal, the latest in a wave of upstream consolidation. Three energy names on Josh Brown’s “Best Stocks in the Market” list are benefitting from the trend.

ConocoPhillips (COP) leads the group. The integrated oil‑and‑gas giant closed its Marathon Oil merger in 2024 and now produces 2.25 million barrels of oil equivalent per day, including a record 900 000 + bbl/d in the Permian. COP’s shares are trading around $154, up 64 % year‑to‑date and 76 % over the past year on a total‑return basis. Second‑quarter adjusted EPS jumped to $3.24 from $1.42 a year ago on $7.2 billion of operating cash flow. The company returned $9 billion in 2025—45 % of operating cash flow—through buybacks ($5 billion) and dividends ($4 billion) and plans to keep the 45 % target for 2026. Risk‑management commentary from Josh notes that COP has broken out of its September high, is at fresh 52‑week highs and advises a tight stop at the $142 level (the September peak) for traders, with a broader investor anchor at $136.

Devon Energy (DVN) entered 2025 with the Coterra merger, adding gas assets and 532 million shares. The Delaware‑Basin focused producer now trades near $52, a 29 % gain since the deal announcement and 11 % since closing. Devon returned $1.06 billion to shareholders in the seven weeks after the merger—dividends, buybacks and debt reduction—and has an $8 billion buyback authorization. The stock has repeatedly tested the $53 level, and Sean highlights a healthier risk set‑up: a rising 50‑day moving average at $49 and a 200‑day at $46. Traders are advised to guard the position with a stop at $48 (the October wick low), while investors can anchor at $45.

Occidental Petroleum (OXY) rounds out the trio. Berkshire Hathaway holds roughly 26.5 % of the shares and a large block of preferred stock, giving the story added weight. OXY is up 55 % YTD and 58 % over the last 12 months, trading just below its 52‑week high of $67.45. The company reduced debt to $11.8 billion in the first half of 2025 after using proceeds from the OxyChem sale, and free cash flow before working‑capital needs reached $3 billion in Q2. The dividend was raised 8 % to $0.28 per quarter, while buybacks remain opportunistic pending redemption of preferred equity in 2029. Josh’s risk view notes that OXY is consolidating around $61‑$65 after a March peak, with the 50‑day at $60 and the 200‑day at $56. A break below $61 would signal a return to the prior range; investors may use $55 as a broader anchor.

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