ExxonMobil began as a regional kerosene production company and has since scaled its operation up to include both excavating and exporting natural gas and oil. Kinder Morgan’s energy transition ventures business unit (launched in 2021) aims to identify, analyze, and pursue commercial opportunities as the energy sector transitions to lower-carbon fuel sources. Kinder Morgan’s extensive natural gas infrastructure footprint makes it potentially suited to store and transport lower-carbon fuel sources such as RNG and hydrogen, positioning it for the future of energy. The natural gas export company plans to allocate its cash flow toward dividend payments (which it initiated in late 2021), repurchasing shares, paying down debt, and funding Corpus Christi Stage 3.
Range Resources (NYSE:RRC)
The contract is forecast to generate $12 billion in revenue over its life. For the average investor, the easiest way is likely in ETFs or individual stocks. GOBankingRates works with many financial advertisers to showcase their products and services to our audiences. These brands compensate us to advertise their products in ads across our site.
- She especially enjoys setting up weekly covered calls for income generation.
- Going one stock at a time and carving out a small niche in your portfolio is the best way to break into any new asset class.
- And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.
EQT Corporation
When the shale revolution happened in the 2010s, the first goal of all shale oil & gas producers was growth. The idea was that by improving the technology and reaching a sufficiently large scale, costs would decline and turn the shale companies profitable. This ETF has a strong focus on US exploration companies, as well as land trusts in oil-rich regions. Its top holdings include SM Energy, Texas Pacific Land Corp, Apa Corp, and CNX Resources (among the largest gas producers in the US). Most natural gas companies specialize in a single segment, like production, liquefaction (LNG), or transportation. Tellurian aims to change that, with ambitious plans to become a leading integrated gas company.
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- GAAP net loss of $16 million translated into 16 cents per diluted share.
- You can choose from companies in different parts of the process — upstream, midstream or downstream.
- This ETF has a strong focus on US exploration companies, as well as land trusts in oil-rich regions.
- The price target is currently 49.70, 40% above current levels, and analysts project 33.3% earnings growth next quarter and 24.20% growth next year.
- With a stable and reliable revenue stream, Equitrans Midstream is a promising investment for those looking for a steady income in the natural gas sector.
The USA has a lot of gas, while Asian markets are in demand for it. Europe is also now a major LNG market (probably permanently) following the war in Ukraine, the destruction of the Nord Stream pipeline, and the resistance toward dependence on Russia. Thanks to its restructuring, the company only has debt maturing in 2026 and 2029, respectively, at 5.5% and 6.5%. This puts Chesapeake in a great position to benefit from rising interest rates, which raise the cost of capital for its competitors while it keeps operations going and distributes a generous dividend. It has a changed focus on dividends and returning profits to shareholders, with $125M of share buyback and $515M of dividends in Q2 2023.
Investing in Top Oil Stocks
Natural gas investments present a strong combination of long-term growth potential, portfolio diversification, and energy security. When two or more companies had the same number of hedge funds investing in them, we ranked them by the revenue of their last financial year. Following are the Best Natural Gas Stocks to Buy According to Hedge Funds. If you do decide to add natural gas stocks to your portfolio, make sure that they don’t make up the majority of your investments. Instead, use them to complement a larger portfolio of total market index funds, S&P 500 funds and large-cap stocks. Most brokers now allow you to create an account online and begin your self-directed trading through an all-in-one platform.
In this article, we are going to discuss the 11 best natural gas stocks to buy now. Natural gas stocks are shares in companies that produce natural gas. Here are a few characteristics to look for when you shop for natural gas stocks. Natural gas, too, is something that can be utilized further so that it can complete with the renewable energy sector. If not, it could have a difficult time keeping up—as will the oil sector at some point.
Williams Companies, Inc. (NYSE: WMB)
Investors can benefit from these changes by gaining exposure to the best natural gas stocks across the industry, including production, pipelines, LNG liquefaction facilities, and LNG shipping companies. Our last company isTellurian, an oil and gas exploration and production company. Management has been building a portfolio of natural gas production, LNG marketing, and infrastructure assets.
While a high dividend can be a red flag, it doesn’t appear to be in this case. They predict an 18% increase in share prices over the next 12 months. Antero has a “moderate buy” consensus rating, as reported by MarketBeat. It also has a consensus price target of $32.83, which is 14.50% higher than its current share price. Needless to say, this is a high-risk stock that sits firmly in buy-and-hold territory.
Or you can choose based on the type of stock — value, growth or momentum. Exchange-traded funds offer the opportunity to let a manager run your natural gas portfolio for you. The funds also provide automatic diversity in your natural gas holdings, and you can add other types of energy stocks to diversify holdings across the energy sector. You can use that as a guide for determining how to allocate your own assets.
Get the latest news on investing, money, and more with our free newsletter. Our in-house research team and on-site financial experts work together to create content that’s accurate, impartial, and up to date. We fact-check every single statistic, quote and fact using trusted primary resources to make sure the information we provide is correct. You can learn more about GOBankingRates’ processes and standards in our editorial policy. Eight out of 19 analysts rate PSX as a “buy” or “strong buy,” while nine recommend holding and one recommend selling. The remaining analyst rates it “underperform.” The price target is $146.65.
Leveraged 3X Natural Gas ETFs are funds that track futures pricing on Henry Hub natural gas. The ETFs apply leverage in order to gain three times the daily or monthly return of the underlying oil commodities prices. This ETF includes most of the US shale and Canadian oil & gas producers, with a focus on exploration and growing production. Its top holdings are EOG Resources, ConocoPhillips, and Canadian Natural Resources.
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In the long run, the coal-to-gas switch top natural gas stocks for power production should keep the demand for LNG high, especially in Asia. Tezcan Gecgil, Ph.D., has worked in investment management for over two decades in the U.S. and U.K. In addition to formal higher education in the field, she has also completed all three levels of the Chartered Market Technician (CMT) examination. Herpassionis for options trading based on technical analysis of fundamentally strong companies. She especially enjoys setting up weekly covered calls for income generation. Net loss was $31 million, or 8 cents loss per diluted share, compared to a net loss of $129 million, or 53 cents loss per diluted share, a year ago.
EQT’s size gives it scale advantages, notably with Equitrans now part of the company, making it one of the world’s lowest-cost natural gas producers. EQT’s expansion also continued in 2025 with the $1.8 billion acquisition of Olympus Energy’s upstream and midstream assets. Natural gas is an abundant, low-cost, and versatile fuel, but it has limitations. In its gaseous form, it must travel by pipeline, making infrastructure essential for the natural gas industry. To invest in natural gas ETFs, you can use brokerage platforms and purchase shares just like individual stocks. Our go-to broker is eToro, a widely popular and licensed platform.
