In this article, we will take a look at the 5 Best Oil and Gas Penny Stocks to Buy Now. For deeper analysis and discussion, have a look at the 8 Best Oil and Gas Penny Stocks to Buy Now.

5. Martin Midstream Partners L.P. (NASDAQ:MMLP)

Number of Hedge Fund Holders: 3

Next on our list of the Best Oil and Gas Penny Stocks is Martin Midstream Partners L.P. (NASDAQ:MMLP). The company provides terminalling, processing, and storage services for petroleum products and by-products in the United States.

On March 12, Stifel analyst Selman Akyol lowered the firm’s price target on Martin Midstream Partners L.P. (NASDAQ:MMLP) from $4 to $3, but maintained a ‘Hold’ rating on the shares. The revised target still indicates an upside potential of 20% from the current share price.

The analyst noted that the sulfur sector has benefited from the Venezuelan oil flowing into the United States following the ouster of Nicolas Maduro. However, the fertilizer industry is witnessing a decrease in demand due to the challenging growing conditions for the cotton crop in Texas.

Martin Midstream Partners L.P. (NASDAQ:MMLP)’s Sulfur Services segment is expected to deliver adjusted EBITDA of $30.3 million in 2026, consistent with last year’s results. The company already expected the fertilizer market to remain compressed due to the rising sulfur input costs. The firm is forecasting its FY 2026 adjusted EBITDA to come in at $96.5 million.

4. OMS Energy Technologies Inc. (NASDAQ:OMSE)

Number of Hedge Fund Holders: 5

OMS Energy Technologies Inc. (NASDAQ:OMSE) is a growth-oriented manufacturer of surface wellhead systems (SWS) and oil country tubular goods (OCTG) for the oil and gas industry.

OMS Energy Technologies Inc. (NASDAQ:OMSE) revealed on March 20 that it had received a $11 million call-off order for specialty connectors and pipes from Saudi Aramco under an existing long-term supply agreement. The order was received through the company’s Saudi Arabia subsidiary, OMS Saudi, with the products scheduled for delivery in 2026.

OMS Energy Technologies Inc. (NASDAQ:OMSE)’s supply agreement with the largest oil company in the world was signed in early 2024 and works on a call-off basis, under which Saudi Aramco places orders for specialty connectors and pipes as per its operational requirements.

The development comes only a day after OMS Energy Technologies Inc. (NASDAQ:OMSE) had secured surface wellhead system orders and a contract extension totaling around $2.6 million from operators in Oman, Pakistan, and Indonesia.

How Meng Hock, Chairman and CEO of OMS Energy Technologies Inc. (NASDAQ:OMSE) stated:

“This US$11 million call-off order highlights the enduring value of our long-term partnership with Saudi Aramco, providing significant demand visibility for our specialty connector business. Supported by a stable revenue pipeline, debt-free balance sheet and strong cash position, we are well-equipped to invest in the capacity and capabilities needed to serve Aramco’s growing needs and strengthen our position in Saudi Arabia, while expanding our broader international footprint to drive long-term shareholder value.”

3. KLX Energy Services Holdings, Inc. (NASDAQ:KLXE)

Number of Hedge Fund Holders: 9

KLX Energy Services Holdings, Inc. (NASDAQ:KLXE) is a leading US onshore provider of mission-critical oilfield services focused on completion, intervention, and production activities for the most technically demanding wells.

KLX Energy Services Holdings, Inc. (NASDAQ:KLXE) reported its Q4 2025 results on March 12, with the company’s adjusted loss per share of $0.76 exceeding estimates by $0.04. The firm also achieved a revenue of $156.8 million, down by over 5% YoY due to a decrease in activity and the expected seasonal decline in the fourth quarter. With an adjusted EBITDA of $23 million and adjusted EBITDA margin of 14%, the fourth quarter was KLX’s most profitable of the year.

KLX Energy Services Holdings, Inc. (NASDAQ:KLXE) posted a revenue of $637 million for the full-year 2025, while its adjusted EBITDA and adjusted EBITDA margin stood at $76 million and 12%, respectively.

KLX Energy Services Holdings, Inc. (NASDAQ:KLXE) is projecting a revenue of $145 million to $150 million for Q1 2026, down approximately 3% YoY, driven by the familiar seasonal combination of customer budget resets, slower restarts of completion programs and weather-related disruptions. However, the company then expects the second quarter revenue to rebound to the $160 million to $170 million range, which is higher than the same period compared to last year.

2. W&T Offshore, Inc. (NYSE:WTI)

Number of Hedge Fund Holders: 20

W&T Offshore, Inc. (NYSE:WTI) is an independent oil and natural gas producer, active in the exploration, development, and acquisition of oil and natural gas in the Gulf of America.

W&T Offshore, Inc. (NYSE:WTI) reported its Q4 2025 results on March 16, with the company’s loss per share of $0.14 falling behind estimates by $0.02. Revenue for the quarter came in at $121.7 million, up 1.1% YoY but still missing expectations by $765,000. That said, W&T grew its production by 2% sequentially and 13% YoY during the fourth quarter.

W&T Offshore, Inc. (NYSE:WTI) also highlighted several key achievements for its full-year 2025. The company increased production every quarter during the year, from 30,500 boed in the first quarter to 36,200 in Q4. Moreover, the oil and gas producer managed to bolster its balance sheet by ending the year with almost $141 million in cash, up by $31 million from the end of 2024. Net debt also reduced by $74 million to $210 million.

W&T Offshore, Inc. (NYSE:WTI) is projecting the midpoint of its Q1 2026 production at around 35,000 boed, with the full-year 2026 production midpoint also expected at around the same level, assuming no additional acquisitions or drilling.

1. Kosmos Energy Ltd. (NYSE:KOS)

Number of Hedge Fund Holders: 21

Topping our list of the Best Oil and Gas Penny Stocks is Kosmos Energy Ltd. (NYSE:KOS). It is a leading deepwater exploration and production company focused on meeting the world’s growing demand for energy.

On March 23, Goldman Sachs raised its price target on Kosmos Energy Ltd. (NYSE:KOS) from $2 to $2.25, while maintaining a ‘Neutral’ rating on the shares. The bumped target indicates a downside of over 22% from the current levels.

Kosmos Energy Ltd. (NYSE:KOS) reported its Q4 2025 results earlier this month, with the company falling behind estimates in both earnings and revenue. That said, Kosmos announced a strong outlook for FY 2026, with a target to deliver 15% YoY production growth coming predominantly from its core, Jubilee, and GTA assets. Moreover, the company aims to achieve this while also reducing its total operating costs by 20%, with the combination of higher production and lower costs expected to reduce OpEx per barrel by around 35%. Notably, the firm is also aiming to cut its debt by at least 10% by the end of 2026.

Kosmos Energy Ltd. (NYSE:KOS) was also recently included in our list of the 10 Small-Cap Stocks Insiders are Buying Recently.

READ NEXT: 14 Best Energy Stocks to Buy According to Wall Street Analysts and 13 Oil Stocks with Highest Dividends

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