Bank of America Names Top MENA Oil & Gas Stocks for Q4 2026

Bank of America has identified its preferred stocks in the Middle East and North Africa (MENA) oil and gas sector heading into the fourth quarter of 2026, highlighting three companies it believes offer a mix of near-term catalysts and long-term growth. The firm's top selections are ADNOC Gas, ADNOC Logistics & Services (L&S), and Luberef, each backed by distinct operational strengths and market tailwinds, according to a BofA research note.

Bank of America's Selections

The firm detailed its rationale for each company, pointing to specific financial targets, market conditions, and valuation metrics that support its positive outlook.

ADNOC Gas

Bank of America maintains a Buy rating on ADNOC Gas, calling it a "compelling long-term growth story" with immediate upside potential from higher oil prices. Key points from the analysis include:

• The company has guided for approximately 60% EBITDA growth by 2030 compared to 2023 levels.
• A $28 billion capital expenditure plan is expected to be managed while keeping the balance sheet strong, with net debt-to-EBITDA forecast to remain below 1x by 2029.
• In the near term, BofA estimates that every $5 per barrel increase in oil prices boosts the company's EBITDA by 4-5%.

ADNOC Logistics & Services

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For ADNOC L&S, the bank's projections are notably more bullish than the company's own guidance. BofA forecasts 102% EBITDA growth and 185% net income growth in 2026, citing strong shipping rates and the normalization of its logistics operations. The firm sees potential for additional long-term contracts as parent company ADNOC expands its activity.

Luberef

BofA highlights that the Saudi Arabian base oils producer continues to benefit from elevated crack spreads, which are currently at 1.25 times pre-crisis levels. The bank sees an attractive risk-reward profile, noting the stock trades at an 11.8x price-to-earnings ratio for 2027, below its long-term average of 14x. Future earnings growth is expected to be driven by expansion projects.

Recent Performance as Context

The positive outlook from Bank of America is supported by strong recent financial results from all three companies. ADNOC Gas reported a second-quarter net income of $665 million, surpassing market expectations.

Meanwhile, ADNOC L&S announced record second-quarter results, including a net profit of $951 million, which prompted the company to raise its full-year guidance. Luberef also posted a record first-half 2026 net income of SAR 992 million, an increase of 113% from the previous year, driven by strong pricing.