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. (NYSE:EC) 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. (NYSE:EC) 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. (NYSE:EC) 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.
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