In this article, we will list the 5 Integrated Oil and Gas Companies to Invest In According to Hedge Funds. Please visit 10 Integrated Oil and Gas Companies to Invest In According to Hedge Funds if you’d like to see an extended list and the methodology behind it.
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 (NYSE:PBR) 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 (NYSE:PBR) 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. (NYSE:SU) 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. (NYSE:SU) 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. (NYSE:SU) 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. (NYSE:OXY) 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. (NYSE:OXY) 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. (NYSE:OXY) 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.
While we acknowledge the potential of OXY to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than OXY and that has 100x upside potential, check out our report about the cheapest AI stock.
READ NEXT: 40 Most Popular Stocks Among Hedge Funds Heading Into 2026 and 12 Oversold Financial Stocks to Invest in According to Hedge Funds.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
