The global energy markets are driven by demand and supply dynamics that dictate underlying commodity prices and shape business prospects for companies operating in these segments. From a supply point of view, there are some critical functions involved in the overall process that ensure the availability of such commodities without any disruptions. Some of these are extraction, processing, liquefaction, storage, regasification, and transportation. Entities specializing in one or more of these functions are glued to the fundamental movements within their respective commodity markets, which have a direct impact on their profitability.
On January 23, the International Energy Agency (IEA) published its outlook for the global liquefied natural gas (LNG) market, which expects demand to accelerate in the coming year. At the same time, there will be a surge in LNG supply, driven primarily by North America. Keisuke Sadamori, Director of Energy Markets and Security at IEA, stated:
“The unfolding LNG wave is set to have a central role in shaping global gas markets in the coming years, likely putting downward pressure on prices and improving liquidity as regional gas markets become increasingly interconnected. Nevertheless, a range of risk factors remain – including geopolitical tensions and weather conditions – as the volatility in natural gas markets in early 2026 has highlighted. In these uncertain times, continued vigilance on energy security is essential, and the IEA is supporting countries around the world on this critical priority.”
The above forecasts will drive investor sentiment around individual stocks within these specific markets. With that background, let’s explore our 13 Best Oil and Gas Storage Stocks to Buy According to Hedge Funds.
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Our Methodology
To identify relevant stocks for this article, we screened for U.S.-listed companies with market capitalizations above $2 billion having a core business in or significant exposure to the oil & gas storage space. 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 13 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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
13. MPLX LP (NYSE:MPLX)
Number of Hedge Fund Holders: 16
MPLX LP (NYSE:MPLX) is one of the 13 best oil and gas storage stocks to buy according to hedge funds.
On February 10, Spiro Dounis from Citi maintained his Neutral rating on MPLX LP (NYSE:MPLX). The analyst also increased the price target on the stock from $54 to $55.
Dounis’ upward revision is underpinned by a growing backlog that cleared street expectations following the company’s fourth-quarter results, prompting an incremental increase to the firm’s projections.
On February 3, MPLX LP (NYSE:MPLX) reported fourth-quarter revenues of $3.3 billion, outperforming consensus estimates of $3.2 billion. Chairman, President, and Chief Executive Officer, Maryann Mannen, stated:
“In 2025, we invested to grow our natural gas and NGL value chains and returned more than $4B to unitholders. In 2026, we are executing growth anchored in the Permian and Marcellus basins, advancing our strategic initiatives and commitment to durable distribution growth. These opportunities will meet growing demand for natural gas and NGLs, enhance our value chains, and support mid-single digit adjusted EBITDA growth.”
MPLX LP (NYSE:MPLX) operates midstream energy infrastructure and logistics assets. The company is engaged in gathering, processing, storing, marketing, and transporting natural gas, natural gas liquids, crude oil, and refined products. It also distributes hydrocarbon-based products, as well as renewables, residue gas, and condensate.
12. Kinetik Holdings (NYSE:KNTK)
Number of Hedge Fund Holders: 19
Kinetik Holdings (NYSE:KNTK) is one of the 13 best oil and gas storage stocks to buy according to hedge funds.
On January 28, the price target for Kinetik Holdings (NYSE:KNTK) was decreased from $46 to $45 by JPMorgan. The firm maintained an Overweight rating on the stock. The adjustment is based on persistent headwinds reflected in the company’s fourth quarter report. However, the firm maintained its constructive stance, anticipating tailwinds to emerge during the second half of 2026.
On January 22, Clear Street also maintained an Overweight rating on Kinetik Holdings (NYSE:KNTK), while lowering the price target from $55 to $52. The revision came ahead of the company’s December quarter announcements.
The firm lowered its adjusted EBITDA estimates for 2026 and 2027 by 5% and 3%, respectively. This revision reflects marginally lower expected volumes due to unplanned intrastate gas pipeline maintenance and some deliberate production pullbacks in early 2026.
Kinetik Holdings (NYSE:KNTK) is a midstream energy company that is involved in gathering, processing, treating, storing, and transporting natural gas, natural gas liquids (NGLs), crude oil, and produced water. The company serves producers across the Delaware basin. It also markets condensates, natural gas residue, and NGLs.
11. Excelerate Energy (NYSE:EE)
Number of Hedge Fund Holders: 20
Excelerate Energy (NYSE:EE) is one of the 13 best oil and gas storage stocks to buy according to hedge funds.
On February 24, Morgan Stanley maintained an Equal Weight rating on Excelerate Energy (NYSE:EE), and raised the stock’s target price from $30 to $40. The firm noted that the company’s secured cash flow streams and LNG demand growth exposure have positioned it favorably relative to peers, particularly in a weaker pricing environment.
However, the firm also warned that the global LNG market appears to be moving towards oversupply, which leads it to have a cautious stance on the broader U.S. sector.
Back on February 6, Deutsche Bank reaffirmed its Buy rating on Excelerate Energy (NYSE:EE). The firm also increased the stock’s target price from $35 to $44, resulting in a double-digit upside potential of over 11%. The upward revision was part of Deutsche’s fourth-quarter preview, resulting in an upside to its forecasts.
Excelerate Energy (NYSE:EE) is an integrated liquefied natural gas (LNG) solutions company that delivers regasification services worldwide. Its offerings include floating storage and regasification units, infrastructure development, and LNG and natural gas supply. The company is known for providing flexible and trusted LNG-to-power solutions.
10. Enbridge Incorporated (NYSE:ENB)
Number of Hedge Fund Holders: 26
Enbridge Incorporated (NYSE:ENB) is one of the 13 best oil and gas storage stocks to buy according to hedge funds.
As of February 26 closing, consensus sentiment for Enbridge Incorporated (NYSE:ENB) was moderately bullish. The stock received coverage from 14 analysts, 6 of whom assigned Buy ratings and 8 gave Hold calls. With no Sell rating, it has a projected median 1-year price target of $55.19.
On February 17, Ben Pham from BMO Capital reiterated his Market Perform rating on Enbridge Incorporated (NYSE:ENB). The analyst also increased the firm’s price target on the stock from C$70 to C$75, offering nearly 5% upside to investors.
On February 17, Scotiabank analyst Robert Hope also raised the firm’s price target on Enbridge Incorporated (NYSE:ENB) from C$73 to C$77. The analyst reaffirmed an Outperform rating on the shares, with a revised upside potential of almost 8% at the current level.
Enbridge Incorporated (NYSE:ENB) is an energy infrastructure company that operates a crude oil and liquids pipeline system that is considered to be amongst the most complex ones in the world. It operates pipelines and terminals for the transportation and storage of crude oil and other liquid hydrocarbons. The company also offers commodity marketing and logistics solutions.
9. Energy Transfer (NYSE:ET)
Number of Hedge Fund Holders: 30
Energy Transfer (NYSE:ET) is one of the 13 best oil and gas storage stocks to buy according to hedge funds.
As of February 26 closing, Energy Transfer (NYSE:ET) carried a moderately bullish consensus sentiment. Amongst the 11 analysts who covered the stock, 7 assigned Buy ratings and 4 gave Hold calls. With no Sell rating, it has a projected median 1-year price target of $21.15, leading to an upside potential of more than 13% at the prevailing level.
On February 17, Energy Transfer (NYSE:ET) updated its 2026 outlook, raising its adjusted EBITDA guidance to a range of $17.5 billion to $17.9 billion. This is a revision from previous estimates between $17.3 billion and $17.7 billion.
The company stated that the revision reflects the impact of USA Compression’s completed purchase of J-W Power Company. Energy Transfer also reaffirmed its 2026 growth capital plan of $5 billion to $5.5 billion, with spending primarily directed towards expanding and strengthening its natural gas infrastructure.
A day later, Jefferies analyst Julien Dumoulin-Smith reiterated his Hold rating on the stock but raised the price target to $20 from $17. The analyst maintains a cautious view, as he believes the company’s scale in the gas business is insufficient to support a higher valuation.
Energy Transfer (NYSE:ET) is a midstream energy company that delivers energy services across 44 states. It specializes in transportation and storage of natural gas, crude oil, natural gas liquids (NGLs), and refined products. The company operates storage facilities and an extensive network of intrastate natural gas transportation pipelines.
8. TC Energy (NYSE:TRP)
Number of Hedge Fund Holders: 30
TC Energy (NYSE:TRP) is one of the 13 best oil and gas storage stocks to buy according to hedge funds.
On February 17, TD Securities downgraded its rating on TC Energy (NYSE:TRP) from Buy to Hold, while increasing the price target from C$84 to C$88. The firm explained that it had previously expected valuation premiums for companies offering strong long-term growth visibility. However, for TC Energy (NYSE:TRP), the recent stock surge suggests that this view is now largely reflected in the valuation.
On February 16, the price target for TC Energy (NYSE:TRP) was increased from C$80 to C$93 by Wells Fargo. The firm maintained an Overweight rating on the stock and reflected on the company’s recent call, highlighting two major positives.
The first one relates to an $8 billion projected demand backlog, with around 90% certainty. The second one was around the management’s plans for uncapped capital expenditures from 2029 onwards. These drivers fuel an upward shift in long-term capital deployment and validate a growth profile.
TC Energy (NYSE:TRP) is an energy infrastructure company that operates natural gas pipelines and specializes in energy generation, transportation, and storage. It sources natural gas from supply basins and delivers to distribution companies, power plants, industrial facilities, LNG export terminals, and businesses.
7. DT Midstream (NYSE:DTM)
Number of Hedge Fund Holders: 34
DT Midstream (NYSE:DTM) is one of the 13 best oil and gas storage stocks to buy according to hedge funds.
On February 24, Citi increased the price target on DT Midstream (NYSE:DTM) from $130 to $156, while maintaining its Buy rating. The firm noted that the company’s updated investment outlook came in ahead of expectations, and management’s remarks reflected a more confident stance on growth prospects.
DT Midstream (NYSE:DTM) indicated that expansion is likely to outpace 7% annualized growth rate through the remainder of the decade. Additionally, the company revealed that its project pipeline is several times larger than the already announced $3.4 billion capital plan, which is roughly half approved.
On February 23, Wells Fargo increased the price target for DT Midstream (NYSE:DTM) from $133 to $150, maintaining an Overweight rating on the stock. The firm pointed to the company’s $3.4 billion demand backlog, which was in line with consensus estimates. Moreover, the management indicated that their shadow backlog stands at “multiples of this.” The firm noted:
“DT has the most upside torque to new projects given its smaller size.”
DT Midstream (NYSE:DTM) is a natural gas company that offers integrated natural gas solutions within the U.S. market. It builds and operates interstate and intrastate pipelines, storage facilities, and natural gas gathering lateral pipelines. The company also operates gas gathering systems and is involved in the transportation of natural gas for end-users.
6. Scorpio Tankers (NYSE:STNG)
Number of Hedge Fund Holders: 36
Scorpio Tankers (NYSE:STNG) is one of the 13 best oil and gas storage stocks to buy according to hedge funds.
On February 16, the price target for Scorpio Tankers (NYSE:STNG) was increased from $56 to $61 by BofA analyst Ken Hoexter, who maintained an Underperform rating on the stock.
While near-term momentum in product tanker rates aided the target multiple, it still remains below the stock’s 5-year midpoint range. This is underpinned by a rising capacity outlook, the potential unwinding of sanctions against Russia, and the likelihood of peak rates.
On February 13, B. Riley analyst Liam Burke increased the firm’s price target on Scorpio Tankers (NYSE:STNG) from $80 to $90. The analyst maintained his Buy rating on the shares, implying an upside of almost 18%.
Scorpio Tankers reported fourth quarter time charter equivalent revenue of $241.4 million, reflecting solid year-over-year growth and exceeding market expectations. Average daily TCE per vessel climbed to $28,066, while adjusted EBITDA reached $151.6 million, both coming in ahead of consensus forecasts. Burke noted that strengthening product tanker rates should support the company’s ability to deliver a healthy financial performance during 2026.
Scorpio Tankers (NYSE:STNG) is involved in the marine transportation of crude oil and refined petroleum products worldwide. The company’s fleet comprises tankers owned, leased, or chartered in. The fleet emphasizes fuel-efficient vessels and can transport gasoline, diesel, jet fuel, and more.
5. Targa Resources (NYSE:TRGP)
Number of Hedge Fund Holders: 45
Targa Resources (NYSE:TRGP) is one of the 13 best oil and gas storage stocks to buy according to hedge funds.
On February 24, Citi analyst Spiro Dounis increased the firm’s price target for Targa Resources (NYSE:TRGP) from $200 to $262, resulting in a double-digit upside potential of more than 13%. The analyst also maintained his Buy rating on the stock.
Dounis’ revision is based on Citi’s adjustments to its valuation framework. The firm has assigned a higher earnings multiple, reflecting confidence in stronger growth prospects beginning in 2027. The adjustment comes after the company outlined approximately $4.5 billion in planned 2026 growth capital expenditures, a figure that exceeded the firm’s earlier projections by more than $1 billion.
On February 24, Scotiabank maintained its Outperform rating on Targa Resources (NYSE:TRGP) and also increased the price target from $224 to $246. The revision was based on an upward adjustment to the company’s EBITDA outlook, along with a 0.25x expansion of the target multiple.
Targa Resources (NYSE:TRGP) is a midstream energy company that operates a portfolio of infrastructure assets across the North American market. It deals in various products such as natural gas, natural gas liquids (NGL), and crude oil. It covers various operations such as gathering, compressing, storing, fractionating, transporting, and marketing of products.
4. ONEOK Incorporated (NYSE:OKE)
Number of Hedge Fund Holders: 46
ONEOK Incorporated (NYSE:OKE) is one of the 13 best oil and gas storage stocks to buy according to hedge funds.
On February 24, Stifel Nicolaus reiterated its Buy rating on ONEOK Incorporated (NYSE:OKE). The firm lowered the price target from $94 to $91, resulting in an upside potential of more than 8%.
The firm noted that the company’s fourth-quarter results were in line with expectations. However, management’s guidance remains below consensus forecasts with no year-on-year growth expected during the coming year. The firm expects 2026 to be a transition year for the company, followed by the resumption of growth in 2027.
Back on January 27, JPMorgan analyst Jeremy Tonet reduced the price target on ONEOK Incorporated (NYSE:OKE) from $87 to $83. The analyst also downgraded the stock from Overweight to Neutral.
Tonet’s revisions came after the company’s recent quarterly announcements, in which results fell below EBITDA guidance due to soft macroeconomic fundamentals. He suggested that any improvement in investor sentiment going forward will be linked with the strengthening of oil prices.
ONEOK Incorporated (NYSE:OKE) is a midstream energy infrastructure company that is involved in gathering, fractionation, transportation, storage, and marine export services. The company owns and operates processing plants and natural gas pipelines to facilitate the delivery of natural gas, natural gas liquids (NGLs), crude oil, and refined products across markets.
3. Kinder Morgan (NYSE:KMI)
Number of Hedge Fund Holders: 66
Kinder Morgan (NYSE:KMI) is one of the 13 best oil and gas storage stocks to buy according to hedge funds.
On February 27, Elvira Scotto from RBC Capital increased the firm’s price target on Kinder Morgan (NYSE:KMI) from $30 to $32. The analyst reaffirmed her Sector Perform rating on the stock.
Scotto reflected on a $10B growth project backlog for Kinder Morgan (NYSE:KMI). She believes it offers strong visibility into the company’s cash flow growth over many years to come. Moreover, she also anticipates upside potential for the stock stemming from the shadow backlog.
As of the close of play on February 27, consensus sentiment around Kinder Morgan (NYSE:KMI) remained moderately bullish. The stock received coverage from 8 analysts, 5 of whom assigned Buy ratings and 3 gave Hold calls. With no Sell rating, it has a projected median 1-year price target of $32.14.
Kinder Morgan (NYSE:KMI) is an energy infrastructure company that operates natural gas storage and gathering systems, along with processing and treating facilities. It also manages interstate and intrastate natural gas pipelines and terminals. The company specializes in natural gas, crude oil, refined products, and CO2.
2. The Williams Companies (NYSE:WMB)
Number of Hedge Fund Holders: 80
The Williams Companies (NYSE:WMB) is one of the 13 best oil and gas storage stocks to buy according to hedge funds.
On February 13, Stifel analyst Selman Akyol increased the firm’s price target on The Williams Companies (NYSE:WMB) from $69 to $78. The analyst maintained a Buy rating on the shares after management outlined its strategic outlook for 2026 and beyond.
Akyol highlighted the company’s strong positioning, citing its natural gas-focused business model and diversified asset base across the gas value chain. He believes this structure leaves The Williams Companies (NYSE:WMB) well placed to benefit from expected growth in electricity demand.
On February 12, BMO Capital increased the target price for The Williams Companies (NYSE:WMB) from $70 to $78. The firm also maintained its Outperform rating on the stock. The upward adjustment follows a highly anticipated Analyst Day presentation that surpassed investor expectations.
Management’s guidance of a 10% EBITDA CAGR through 2030 decisively outpaces current street forecasts, which has fortified the firm’s constructive outlook.
The Williams Companies (NYSE:WMB) is an energy infrastructure company that operates interstate natural gas pipelines and storage facilities. Handling almost one-third of the U.S. natural gas production, they are engaged in gathering and processing natural gas assets and connecting producers with end markets. The company also offers crude oil production and transportation across the Gulf Coast region.
1. Cheniere Energy (NYSE:LNG)
Number of Hedge Fund Holders: 81
Cheniere Energy (NYSE:LNG) is one of the 13 best oil and gas storage stocks to buy according to hedge funds.
On February 24, Morgan Stanley analyst Devin McDermott reduced the price target on Cheniere Energy (NYSE:LNG) from $258 to $236. The analyst downgraded his rating on the stock from Overweight to Equal Weight, highlighting potential oversupply within the global LNG market, leading to a more cautious stance on the U.S. sector.
While Cheniere’s limited pricing sensitivity offers some protection, McDermott noted that the stock is currently trading close to fair value.
On January 16, Brandon Bingham from Scotiabank maintained his Outperform rating on Cheniere Energy (NYSE:LNG). In the process, the analyst also increased the price target from $257 to $266, resulting in more than 14% upside potential.
This upward revision stems from the firm’s broader adjustments across its Energy Infrastructure universe. Scotiabank remains highly constructive in its projections, noting that surging power demand and elevated LNG exports are creating an upward bias for its long-term estimates.
Cheniere Energy (NYSE:LNG) is an energy infrastructure company that primarily focuses on the end-to-end liquefied natural gas value chain. It is the largest producer and exporter of liquefied natural gas (LNG) within the U.S. market. The company manages various LNG terminals, pipelines, and facilities across the country and serves as a global LNG operator.
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