These returns cover a period from January 1, 1988 through October 6, 2025. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zacks Ranks stocks can, and often do, change throughout the month.
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While the world is distracted by flashy AI tickers, a few smart investors are quietly scooping up shares of the one company powering it all from behind the scenes. Natural gas stocks can be volitile, but investing in them can be a great way to diversify your portfolio. Given the unique characteristics of natural gas, demand is on track to continue growing. The International Energy Agency (IEA) sees natural gas demand rising by 0.5% annually from 2023 to 2035 in its Stated Policies Scenario (STEPS). Cheniere Energy is the largest liquefied natural gas (LNG) producer in the U.S. and the second-largest in the world. It’s a full-service LNG provider that obtains, transports, liquefies, and delivers natural gas.
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EQT aims to continue to be a consolidator in the natural gas sector. It purchased Alta Resource Development for $2.9 billion in 2021 and Chevron’s (CVX -0.47%) Appalachian Basin assets for $735 million in 2020. EQT also acquired Tug Hill’s upstream assets and XcL Midstream’s gathering and processing assets in 2023 for $2.4 billion in cash and 49.6 million in EQT stock. Natural gas may be a critical “bridge fuel” during the energy transition to lower-carbon alternatives. It can help bridge the gap by supplying cleaner baseload power and helping to offset the intermittency issues of wind energy and solar power. In places where renewable energy is not available, there will frequently be a need for natural gas.
- The company’s reserve portfolio consists of assets in the Midland Basin of West Texas, and the Eagle Ford Trend of South Texas.
- Until the Oct. 1 merger between Southwestern Energy and Chesapeake Energy, EQT Corp. was the largest producer of natural gas in the United States.
- This compared to roughly 7.9 billion cubic feet per day attributed to Shell.
- Its toll-based business model provides steady, fee-based revenue, making it a reliable income generator.
- Natural gas is mostly transported by pipeline or in the form of LNG (Liquefied Natural Gas).
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- Earthstone Energy Inc is an independent oil and natural gas development and production company.
- In its latest Natural Gas forecast, the US Energy Information Administration expects the U.S. benchmark Henry Hub natural gas spot price to increase throughout 2024 from its recent lows.
- Determining the best natural gas stock depends on individual preferences and investment goals.
Understanding natural gas stocks is an important aspect of wise investing. Yes, natural gas may seem like a constant, but it’s under pressure from the oil and renewable energy sectors, meaning that the entire energy sector is competing with itself. So, when you make investments in natural gas, they cannot necessarily be your only exposure to the energy industry.
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The shares are up a whopping 300% YTD, and the market cap is shy of $300 million. REI shares are trading at 5.80 times forward earnings and 1.60 times current sales. Natural gas stocks have been robust, as the price of the commodity rebounds from its 2020 lows. Year-to-date, natural gas is now up by more than 115% and has seen multi-year highs.
Cheniere sells the bulk of its LNG under long-term, fixed-rate contracts, enabling the company to generate predictable cash flow. Vertigo Studio SA is not responsible and cannot be held liable for any investment decision made by you. Before using any article’s information to make an investment decision, you should seek the advice of a qualified and registered securities professional and undertake your own due diligence. This a highly volatile industry, so cautious positioning and diversification are generally preferable.
Incorporating natural gas investments into a portfolio adds valuable diversification, especially for investors heavily weighted in tech or consumer sectors. Energy assets often perform well during inflationary periods, and natural gas adds both defensive and growth characteristics to a balanced investment strategy. The natural gas stock has a market cap of $12 billion and an EPS of $4.30. Exxon Mobil Corporation, doing business as ExxonMobil, is an American oil and gas corporation with a history dating back top natural gas stocks over 135 years.
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We expect U.S. liquefied natural gas (LNG) exports to average 12 Bcf/d in 2024, a 2% increase compared with last year. In 2025, LNG exports increase by an additional 2 Bcf/d (18%) because three of the five LNG export projects currently under construction are expected to start operations and ramp up to full production. Is an independent energy company with a focus on crude oil and natural gas. Kinder Morgan Inc. (KMI Quick QuoteKMI – Free Report) is also well-positioned to gain since it has a massive network of pipeline spanning roughly 66,000 miles. The midstream assets are responsible for transporting approximately 40% of the natural gas produced in the domestic market. Hence, Kinder Morgan will also capitalize on growing clean energy demand.
Antero Resources, headquartered in Denver, handles exploration and production of natural gas and natural gas liquids in the United States and Canada. At the end of 2020, the company reported proven reserves of 17.6 trillion cubic feet of natural gas equivalent resources. Production averaged approximately 3,578 million cubic feet of equivalent a day in 2020 at a ratio of 33% liquids and 67% natural gas. The company is a leading player in the exploration and production of oil and natural gas.
With a solid track record and a diversified portfolio, Devon Energy has positioned itself as a resilient contender in the energy market. First on our list of the best natural gas stocks is EQT, the largest producer in the US, with shale deposits in the Appalachian Basin. EQT produces so much gas (5.3 bcfe/d – billion cubic feet equivalent per day) that it would be the 12th largest gas producer in the world if it were a country.
The future is powered by artificial intelligence, and the time to invest is NOW. It’s delivering real cash flows, owns critical infrastructure, and holds stakes in other major growth stories. This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.
At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +23.93% per year.
Cheniere Energy Inc. is the leading producer and exporter of liquefied natural gas in the U.S. It provides reliable, clean and affordable solutions to the growing needs of natural gas. Cheniere is a full-service liquefied natural gas provider that procures, transports and adds liquefaction, vessel charting and delivery to its capacity. In addition to natural gas, Kinder Morgan is also the largest independent transporter of refined petroleum products, an independent terminal operator, and a carbon dioxide transporter.
Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations. Zacks may license the Zacks Mutual Fund rating provided herein to third parties, including but not limited to the issuer. Woodside is global liquid natural gas company founded in Australia and focused on energy transition. It recently completed its $1.2 billion acquisition of the struggling Tellurian, a U.S.-based LNG developer. It produced 19.5 billion cubic feet of natural gas in the third quarter of 2023 alone, according to a February Securities and Exchange Commission filing.
