In this article, we will take a look at some of the best companies within the oil & gas equipment & services segment that are highly favored by hedge funds.
On April 7, Reuters presented a detailed analysis of the underlying dynamics within the energy markets based on the U.S. Energy Information Administration’s short-term energy outlook. The analysis discussed how fuel prices could continue increasing over several months, despite the reopening of the Strait of Hormuz. This would go against what President Donald Trump predicted, namely that consumers would be relieved once the war with Iran ends.
The important thing to note is that EIA has forecasted an average price for the global benchmark Brent crude oil at a level of $96 per barrel, which is up by 22% since the previous estimate of $78.84. The retail prices for gasoline and diesel in the U.S. are expected to peak in April this year at $4.30 and $5.80 per gallon, respectively. The estimates for global oil demand growth have been revised downward from 1.2 million barrels per day to 600,000 barrels per day due to fuel shortages in some regions. However, it is expected to take many months until all oil deliveries resume in the Strait of Hormuz following the end of the conflict.
In this kind of situation, it becomes important to know which oil and gas equipment companies will gain from high prices and long-term investments in infrastructure. With that background, let’s explore our list of the 10 best oil and gas equipment & services stocks to buy according to hedge funds.
Photo by Robin Sommer on Unsplash
Our Methodology
To identify relevant stocks for this article, we screened U.S.-listed oil and gas equipment & services companies with market capitalizations above $2 billion. Next, we identified the number of hedge funds holding positions in these stocks as of the end of the fourth quarter of 2025. Finally, we selected 10 stocks with the highest number of hedge funds holding stakes and ranked them in ascending order.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
10. WaterBridge Infrastructure LLC (NYSE:WBI)
WaterBridge Infrastructure LLC (NYSE:WBI) is one of the 10 best oil and gas equipment & services stocks to buy according to hedge funds.
On March 18, Goldman Sachs reaffirmed its Neutral rating on WaterBridge Infrastructure LLC (NYSE:WBI). The firm also increased the price target on the stock from $23 to $26. The price target revision is based on the firm’s adjustments to its model, which were made after the release of the fourth-quarter results.
On March 16, WaterBridge Infrastructure LLC (NYSE:WBI) confirmed plans to commence construction of the Speedway Pipeline project. Moreover, the open season for the second phase of the project will begin in February 2026.
Phase II will increase the existing throughput to 500,000 barrels per day for the Speedway Pipeline serving customers in Eddy and Lea counties, New Mexico. It was declared that the company will pay the first-ever cash dividend in its history, with US$0.05 per share for the first quarter of 2026.
For the full year, the estimated adjusted EBITDA for the company is expected to be between US$420 million and US$460 million due to growth enabled by key capital projects with minimum volume commitment. The company experienced high performance with an uptime of 99.7%, measurement variance below 1%, and technology-led activities helping to achieve good results. In addition, the company set a record in the fourth quarter, processing 2.9 million barrels of produced water per day.
WaterBridge Infrastructure LLC (NYSE:WBI) offers water management services through an integrated water and pipeline system. It provides brackish water, recycled water, and produced water solutions. It also delivers pipeline services for managing and collecting produced water, as well as gas delivery services.
