In this article, we will take a look at some of the best integrated oil and gas stocks that are being highly favored by hedge funds. On June 21, CNBC reported a decline in oil prices after the U.S. Treasury Department permitted Iranian crude oil sales until August. Following the announcement, both WTI and Brent futures dropped as markets responded to the possibility of an increased world oil supply.
The authorization came after the advancement in U.S.-Iran peace talks, in which both sides agreed to continue negotiations. On the other hand, President Trump raised the possibility of renewed military action against Iran, highlighting concerns about the stability of the interim peace agreement.
David Roche, President of Quantum Strategy, highlighted that once crude held aboard tankers and storage is taken into account, the current oil supply from the Middle East reaches near pre-war levels. However, he envisions a higher probability of perceived abundance being caused by the depletion of inventories, rather than resulting from production recovery. This will expose markets to risk once those stockpiles are used up.
Goldman Sachs also shed light on the developments, stating that continued supply shocks might eventually expedite the broader transition towards EVs, which would lead to a weakening of crude oil demand. This will further add to the downside risk for oil prices.
With that background, let’s explore our 10 Integrated Oil and Gas Companies to Invest In According to Hedge Funds.
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Our Methodology
To identify relevant stocks for this article, we screened U.S.-listed integrated oil and gas companies with market capitalizations above $2 billion. Next, we identified the number of hedge funds that held positions in these stocks by the end of the first quarter of 2026. 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 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
10. Ecopetrol S.A. (NYSE:EC)
Ecopetrol S.A. (NYSE:EC) is one of the 10 integrated oil and gas companies to invest in according to hedge funds.
Back on May 26, Ecopetrol S.A. reported that Ecopetrol Investimentos do Brasil LTDA, the company’s Brazilian subsidiary, had initiated a voluntary Tender Offer on the country’s B3 exchange, after getting B3’s approval. Through this offer, priced at R$23, the subsidiary aims to purchase more than 116 million common shares of Brava Energia S.A., which translates into around 25% of the target’s outstanding shares.
The quoted offer price represents an almost 21% premium over Brava Energia’s 90-day volume-weighted average price (VWAP) before the announcement. The tender offer is part of a previous announcement made on April 23 and would result in Ecopetrol holding a 51% controlling stake in Brava Energia, along with voting rights. Finalization of this transaction is contingent upon regulatory clearances, the Share Purchase Agreement, and other requirements. The tender offer will be open till the scheduled auction date on June 25.
Later in the first week of June, Andres Cardona of Citi raised the price target on Ecopetrol S.A. from $14 to $18 while downgrading the stock to Neutral. The rating downgrade was based on the stock’s valuation surge, which the analyst linked to rising oil prices and a positive outlook on Colombia’s impending elections.
In a bearish scenario, Cardona believes there is a substantial downside risk on the stock. Despite the underlying risks, the adjusted target price yields almost 20% upside potential at the prevailing level.
Ecopetrol S.A. is an integrated energy company focused on the exploration and production of oil and gas. The company is also involved in the extraction, processing, and transportation of fuel oil, crude oil, motor fuels, and other refined products. Additionally, it offers telecommunications, information technology, and transmission services.
9. Imperial Oil Ltd. (NYSE:IMO)
Imperial Oil Ltd. (NYSE:IMO) is one of the 10 integrated oil and gas companies to invest in according to hedge funds.
On June 23, the Toronto Stock Exchange granted Imperial Oil Ltd. approval to initiate a normal course issuer bid (NCIB), which permits the business to buy back up to 5% of its common shares outstanding. The company may buy back up to 24.17 million shares over the course of the next year, based on the 483.59 million shares outstanding as of June 15. The quantity of shares purchased from ExxonMobil, Imperial Oil’s largest shareholder, will lower this upper limit.
The one-year buyback program will commence on June 29 and will finish either on June 28, 2027, or whenever the business has bought the maximum shares permitted. It reflects the company’s fundamental strength, which is backed by a resilient balance sheet position, impressive cash flows, and low working capital requirements.
It also exhibits the company’s strong emphasis on paying out cash to shareholders in a more tax-efficient manner, along with flexibility to participate. Moreover, it is a more efficient way to overcome the dilution risk associated with the company’s restricted share allocation program.
Imperial Oil Ltd. is involved in exploration, production, and sale of crude oil and natural gas in Canada. The company explores, produces, and transports crude oil, natural gas, synthetic crude oil, and bitumen. It manufactures and sells plasticizer intermediates, aliphatic solvents, and polyethylene resins.
8. YPF Sociedad Anónima (NYSE:YPF)
YPF Sociedad Anónima (NYSE:YPF) is one of the 10 integrated oil and gas companies to invest in according to hedge funds.
On June 16, the Argentine national energy provider, YPF Sociedad Anónima, announced that it signed an LOI with Tesla Inc. (NASDAQ:TSLA) to collaborate on energy storage infrastructure and fast-charging networks. According to a statement from YPF, the agreement was reached while YPF CEO Horacio Marin visited Tesla’s Gigafactory in Texas. The visit was centered on possible cooperation in technological advancements, energy infrastructure development, and electric mobility.
Back on May 27, Tasso Vasconcellos from UBS increased his target price on YPF Sociedad Anónima from $45 to $48. In the process, the analyst also reiterated a Neutral rating on the stock.
Even the broader consensus sentiment toward the stock remained strongly bullish as of the close of play on June 29. It received Buy ratings from 3 of the 4 analysts who provided coverage. With 1 Hold call and no Sell rating, the stock has a median 1-year target price of $57.38. This results in an upside potential of almost 27% at the prevailing level.
YPF Sociedad Anónima is an energy company that explores, produces, refines, and commercializes crude oil, natural gas, petrochemicals, and refined products. It also engages in LNG liquefaction, NGL fractionation, power generation, and agribusiness specialties.
7. Equinor ASA (NYSE:EQNR)
Equinor ASA (NYSE:EQNR) is one of the 10 integrated oil and gas companies to invest in according to hedge funds.
On June 18, Equinor ASA revealed that it has come to an agreement with its partners regarding Ringvei Vest, a sizable subsea development project connected to the Troll B platform within the Norwegian North Sea. This is a significant step towards project maturation and involves 1 prospect and 7 discoveries. It also marks a significant breakthrough in the project’s growth, opening doors for common field development prospects in the future.
Equinor’s Executive VP for Exploration and Production Norway, Kjetil Hove, highlighted that the estimated contribution from Ringvei Vest amounts to around 240 million barrels of oil equivalent. He went on to acknowledge the arrangement as an optimal utilization of resources, by stating:
“A solid effort has been put in over a long period, and I am confident that together with partners and authorities, we have arrived at the best development solution, which also ensures optimal resource utilization.”
While being the operator for each license, Equinor has served as the area architect. In collaboration with its partners, it has studied various alternatives for which discoveries to incorporate into the host platform and development.
Equinor ASA is an energy company that focuses on oil and gas discovery, commercial and technology development, research, digitalization, and renewables. It covers various functions such as energy trading, refining, multi-modal transportation, and low-carbon solutions across crude oil, gas, and NGL.
6. TotalEnergies SE (NYSE:TTE)
TotalEnergies SE (NYSE:TTE) is one of the 10 integrated oil and gas companies to invest in according to hedge funds.
On June 24, TotalEnergies SE agreed to a 10% interest in the Bab Gas Cap Concession based in Abu Dhabi. ADNOC, which has a 60% stake, is currently operating this concession. Other stakeholders of the concession include GS Energy (3%), ZhenHua (4%), JODCO/INPEX (5%), CNPC (8%), and BP (10%).
With a planned capacity of 1.5 billion cubic feet per day, the partners will be able to utilize the Bab onshore field for the development of substantial gas cap resources. It expands upon the 40-year renewal agreement of the Onshore Oil Concession, which was executed back in 2015.
Subsequently, TotalEnergies pursued the advancement of the Bab Gas Cap in collaboration with ADNOC and its partners, which now offers substantial growth prospects. The project is also in line with Abu Dhabi’s plan to increase gas output and production of liquids from condensate sources while strengthening its LNG value chain, particularly the Ruwais LNG project, in which TotalEnergies holds a 10% stake.
TotalEnergies SE is an integrated energy company. It produces and markets natural gas, biogas, oil, and biofuel. It is also involved in the production and selling of renewables, low-carbon hydrogen and electricity.
5. Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR)
Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) is one of the 10 integrated oil and gas companies to invest in according to hedge funds.
On June 19, Petróleo Brasileiro S.A. – Petrobras revealed that the company’s Board of Directors has sanctioned the Final Investment Decision regarding the RPBC Biorefining project. The project involves a specialized facility at the Presidente Bernardes Refinery, based in Cubatão, for the generation of renewable diesel and bio-jet fuel.
The capital outlay for this project is estimated to be around US$1.2 billion. Following such authorization, Petrobras will proceed to the final stages of contractual execution and other relevant agreements. Construction for this project is anticipated to start somewhere near the end of this year.
The project has been integrated into the company’s Base Implementation Portfolio, depending on the required funding position. It is also part of the company’s 2026–2030 Business Plan. With a launch date scheduled in 2030, the plant will be able to produce renewable fuels at an estimated capacity of up to 15,000 barrels per day. These would include renewable diesel and biojet fuel.
The project is in line with Petrobras’ pledge to spearhead a fair energy transition in Brazil as well as the aviation industry’s worldwide obligations to abide by Brazil’s Future Fuel Law (Law No. 14,993/2024) and the Carbon Offsetting and Reduction Scheme for International Aviation regulation.
Petróleo Brasileiro S.A. – Petrobras explores and produces crude oil, NGL, and natural gas. The company is engaged in refining, transporting, trading, and exporting oil products. It is also involved in thermoelectric power generation, biodiesel production, LNG transportation and trading, research solutions, and distribution of energy.
4. Shell plc (NYSE:SHEL)
Shell plc (NYSE:SHEL) is one of the 10 integrated oil and gas companies to invest in according to hedge funds.
On June 12, Shell plc (NYSE:SHEL) announced that the company is currently planning to sell its offshore wind portfolio, which is worth over $1 billion. This potential liquidation announcement comes at a time when the company continues to reduce its focus on renewable energy in favor of more lucrative fossil fuel opportunities.
Vinicy Chan and William Mathis from Bloomberg mentioned that the company may begin the official sale process as soon as the end of 2026, with the deal anticipated to be finalized in 2027.
Back on May 21, Mark Wilson from Jefferies increased the firm’s target price on Shell plc (NYSE:SHEL) from $119.70 to $122.40, leading to an attractive upside potential in excess of 56%.
The analyst maintained a Buy rating on the stock after accounting for the company’s recent acquisition of ARC Resources in his valuation. According to Wilson, consolidation of ARC is expected to boost net income by roughly 6% between FY26 and FY28. This will largely be driven by stronger projections for integrated gas earnings.
Shell plc (NYSE:SHEL) is an energy and petrochemical company that explores and extracts NGL, crude oil, and natural gas. The company also operates refineries, chemical manufacturing facilities, and pipelines. It also offers lubricants and commercial fuels, EV charging services, low-carbon energy solutions, and biofuels for aviation and marine sectors.
3. BP p.l.c. (NYSE:BP)
BP p.l.c. (NYSE:BP) is one of the 10 integrated oil and gas companies to invest in according to hedge funds.
On June 25, BP p.l.c. (NYSE:BP) entered into a Technical Services Contract with India’s flagship oil company, ONGC. According to the agreement, BP will act as a Technical Services Provider for ONGC’s Western Offshore Basin fields. The agreement was reached in the presence of Shri Hardeep Singh Puri, Minister of Petroleum and Natural Gas, and Dr Neeraj Mittal, Secretary, Government of India.
The agreement is an extension of ongoing engagements between the two companies and expands their current collaborative efforts within the Mumbai High field to the Western Offshore Basin fields. As part of the latest arrangement, BP will engage with different teams from ONGC for identification and interventions within wells, reservoirs, and production facilities.
Back on June 2, BP p.l.c. (NYSE:BP) conducted formal discussions regarding the potential sale of its assets in the UK North Sea to Ithaca Energy. The estimated transaction size is roughly £2 billion. After some failed negotiations during the prior few weeks, BP continues to look into a potential deal with Ithaca.
Malcolm Moore, Rachel Millard, and Ivan Levingston from the Financial Times reported that the company is simultaneously looking at other options, as it might consider offers from some of the other competitors within the space.
BP p.l.c. (NYSE:BP) is an integrated energy company that produces, markets, and trades in natural gas, wind, solar, bioenergy, and hydrogen businesses. The company also offers retail fuel, Castrol lubricants and fluids, aviation fuel products and services, and EV charging solutions.
2. Suncor Energy Inc. (NYSE:SU)
Suncor Energy Inc. (NYSE:SU) is one of the 10 integrated oil and gas companies to invest in according to hedge funds.
On June 29, Devin McDermott from Morgan Stanley reduced his target price on Suncor Energy Inc. from $65.37 to $64.66, which still results in an adjusted upside potential of more than 18%. The analyst reaffirmed an Equal Weight rating on the stock. McDermott attributed his stance to the recent dip in oil prices, following the announcement of a memorandum of understanding between Iran and the United States, back on June 14.
He noted that the West Texas Intermediate is currently touching levels observed prior to the start of this conflict. Based on that, the analyst has revised his energy price forecasts.
Back on June 5, Goldman Sachs downgraded Suncor Energy Inc. from Buy to Neutral. The firm set a price target of $72, leading to an upside potential of more than 32%. The rating downgrade was based on the stock’s outperformance across multiple years, leading the firm to believe that it does not have much upside at the current level.
It is pertinent to mention that since 2023, Suncor stock has grown by a 2x multiple amid an operational turnaround under Rich Kruger, the company’s CEO. However, given the company’s impressive execution around its Firebag and Fort Hills assets, the firm still holds an optimistic view of the stock despite a rating downgrade.
Suncor Energy Inc. is an integrated energy company that produces and transports crude oil, bitumen, and byproducts from oil sands, while operating offshore and onshore exploration in Canada, Libya, and Syria. It also refines crude oil into petroleum and petrochemical products, selling to retail customers.
1. Occidental Petroleum Corp. (NYSE:OXY)
Occidental Petroleum Corp. (NYSE:OXY) is one of the 10 integrated oil and gas companies to invest in according to hedge funds.
On June 8, Occidental Petroleum Corp. received approval from Trinidad and Tobago to join ExxonMobil in an ultra-deepwater exploration block in the southernmost archipelagic nation in the Caribbean. The Prime Minister of Trinidad and Tobago, Kamla Persad-Bissessar, claims that Oxy can acquire a 10% stake in Block TTUD-1 thanks to government consent. ExxonMobil will continue to have a 90% interest and the operator position.
The negotiations highlighted the Bolivarian Republic of Venezuela’s and the Republic of Trinidad and Tobago’s mutual dedication to upholding transparent communication and bolstering regional cooperation in handling possible international ecological events.
On May 27, Mizuho increased its target price on Occidental Petroleum Corp. from $72 to $75, while upholding an Outperform rating on the stock. The firm anticipates that the ongoing Iran crisis will keep global oil prices and refining margins under pressure for an extended period.
Mizuho raised its oil price outlook by 25% for 2026 and 6% for 2027. Mizuho also increased its U.S. refining crack projections by 61% and 51% for both years, respectively. Despite rising commodity prices, the firm believes that the recent dip in stock valuations presents a compelling alpha opportunity across the U.S. oil and gas segment.
Occidental Petroleum Corp. is involved in exploration, acquisition, and development of oil, natural gas, and natural gas liquids, while also handling the storage and transportation functions. It also buys, processes, and sells carbon dioxide, natural gas, power, and condensate.
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