7 Stocks to Play the Rally in Natural Gas

The company continued to generate strong free cash flows of $1.7 billion in Q4. In addition, EOG declared a quarterly dividend of 82.5 cents per share, along with a special dividend of $1.00 per share. The oil giant bought $400 million worth of shares during the fourth quarter, and declared a quarterly base-plus-variable dividend of $5.58 per share.

Its terminals store renewable fuels, chemicals, petroleum and other products. Ovintiv Inc. (OVV) produces natural gas, natural gas liquids, oil and condensate. The company touts its commitment to generating free cash flow and returning money to shareholders.

Natural Gas (Jul’ @NG.1:New York Mercantile Exchange

Yet, Texas Pacific stands out among the best natural gas stocks to buy for its financial strength. Now, onto the main reasons why MTDR ranks among the best natural gas stocks to buy. On the top line, Matador features a three-year revenue growth rate of 20.8%, beating out nearly 87% of its peers. On the bottom line, Matador has a net margin of 40.3%, well above the industry median of 4.4%. As well, the company’s Altman Z-Score of 3.7 reflects relatively low bankruptcy risk. Kinder Morgan Inc. (KMI) is one of the largest U.S. energy infrastructure companies, with pipelines that transport natural gas, crude oil, gasoline and carbon dioxide.

Finally, Diamondback enjoys a return on equity of 34.5% and a return on assets of nearly 19%, thus indicating an extremely high-quality enterprise. Momentum stocks are those that are going on an upward trajectory and are expected to continue to do so. EQT closed at $30.66 on Feb. 7 and has a one-year target estimate of $54.67 per share.

Best Natural Gas Stocks to Buy Now

DCP Midstream has an annual dividend yield of 4.13%, making it a good choice for those looking for income. Interested in promoting good corporate behavior with your investment dollars? Over a longer-term basis, it’s actually not so far out of whack,” Glickman says. EQT strives to work with and give back to the communities in which we live and operate. We have a renewed commitment to our stakeholders to create long-term value and become their operator of choice.

Investing in natural gas infrastructure companies that own pipelines and LNG export facilities is an alternative. Infrastructure companies should benefit from growing gas demand without direct exposure to pricing. In addition, infrastructure companies tend to pay attractive dividends. EQT’s https://forexarticles.net/software-development/global-cloud-team-solution-for-your-business/ size gives it scale advantages and makes it one of the world’s lowest-cost natural gas producers. The company also has the best credit profile in its peer group, giving it access to low-cost debt and further reducing costs, which positions EQT to generate significant free cash flow.

Pioneer Natural Resources

If you want to invest in cleaner sources of energy with more diversification built into a single investment, you may want to look into Q.ai’s Clean Tech Kit. Our artificial intelligence scours the markets for the best investments for all manner of risk tolerances and economic situations. Whether you choose a specific natural gas stock — or two, or three — or decide to invest in an ETF, adding natural gas positions to your portfolio could be a wise move. Tellurian Inc. (TELL) is an upstream natural gas company with almost 100 drillable locations and, it estimates, 1 trillion cubic feet of net natural gas resource. EQT Corp. (EQT) is the largest producer of natural gas in the United States. The company is focused on replacing international coal with domestic natural gas in order to address climate change.

Coterra Energy stock closed at $24.26 on Feb. 7 but has a one-year average target estimate of $30.01. 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. Looking at the prospects of the U.S.’s natural gas sector, Jefferies’ Lloyd Byrne thinks there’s more growth on tap, despite the short-term presenting some headwinds. The energy-market watchers say commodity prices are likely to fluctuate in the coming months as long as Russia continues to dominate supply-side news. If you’re interested in other stocks, check out our list of the top oil and gas stocks on the TSX and TSXV here, and the ASX here.

• Cheniere Energy (LNG) is a Houston-based energy company primarily focused on liquefied natural gas (LNG) production, shipping, and marketing.
• Crude oil’s weakness stems from concerns of lower Chinese demand as the country continues with its zero-covid lockdown policy, says Stacey Morris, head of energy research at financial consultancy VettaFi.
• We think that renewables will be prioritized for electricity production well before they find use in gas production.
• Out of 19 analysts following the company in October, five rated it a “strong buy” and six rated it a “buy.” Eight recommend holding the stock.
• Coterra Energy Inc. (CTRA) is an upstream oil and gas company that was created by the merger of Cabot Oil & Gas and Cimarex Energy.

Coterra Energy Inc. (CTRA) is an upstream oil and gas company that was created by the merger of Cabot Oil & Gas and Cimarex Energy. It currently has projects in the Permian Basin in West Texas and southeast New Mexico, Marcellus Shale in northeast Pennsylvania and Anadarko Basin in western Oklahoma. In its natural gaseous state, it can’t go on ships for export to global markets. Instead, specialized facilities supercool the gas to turn it into a liquid, which can go on gas-carrying vessels intended for international markets.

Antero Resources Corp.

Natural gas prices have continued their relentless slide after the latest inventory data showed the markets continue to be well supplied. Natural gas (Henry Hub) prices have given up early-week gains, with prices currently sitting at $2.00 per MMBtu down from  $2.19 per MMBtu on Tuesday. EIA weekly data  revealed that gas stocks for the week ended April 7, 2023 clocked in at 1,855 Bcf vs. 1,830 Bcf for the week ended March 31, 2023, good for +25 Bcf injection vs -23 Bcf for the previous week. Gas prices are now down a staggering 56% since the beginning of the year. The various stages of production translate to many opportunities for investments in the natural gas and energy field. We’ll look at natural gas and energy stocks that you should know about right now if you’re looking for where to invest your money.

The International Energy Agency (IEA) sees natural gas demand rising by 5% annually from 2021 to 2030 in its Stated Policies Scenario (STEPS). However, natural gas demand is expected to be flat from 2030 to 2050 in the same scenario. Stewart Glickman, deputy research director at CFRA Research, says that while energy stocks are sharply outperforming the commodity, the same isn’t true over the past three to five years. Crude oil’s weakness stems from concerns of lower Chinese demand as the country continues with its zero-covid lockdown policy, says Stacey Morris, head of energy research at financial consultancy VettaFi.

The company focuses on developing natural gas and natural gas liquids in Pennsylvania, Ohio, West Virginia and Louisiana. Growth stocks are those that tend to make money for investors because they appreciate in price over time, compared to value stocks that generate income. When looking at growth stocks, you want to choose those that will grow faster than the overall economy. If you’re looking for value stocks — those that produce income for investors in the form of a dividend — there are a few in the natural gas industry. These are the natural gas stocks that had the highest total return over the last 12 months.

In Q4 2022, the company’s revenues were up 39% year-over-year to $9.1 billion. LNG has benefitted from the rising price of natural gas globally, along with increasing exports to Europe in recent weeks. The total volume of gas exported in the fourth quarter was 600 trillion Btu, up from 540 trillion in the same period last year. EOG is another of the Strong Buy-rated energy stocks featured here, thanks to 15 Buys and just three Holds among analysts who have released notes over the past three months. Check out other analysts’ price targets and analysis for EOG at TipRanks.

At the end of Q4, the oil refinery had a total debt of $9.2 billion and cash and cash equivalents of $4.9 billion, with a debt to capitalization ratio, net of cash and cash equivalents of approximately 21%. In contrast, the company had a debt-to-capitalization ratio of 40% as of March 31, 2021. Valero Energy (VLO, $139.60) is an American oil refinery that manufactures and markets transportation fuels and other petrochemical products. The company’s diversified refinery base is located throughout the U.S., Canada and the U.K.

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• On the top line, Matador features a three-year revenue growth rate of 20.8%, beating out nearly 87% of its peers.
• To briefly recap, in Q4 2022, Cheniere Energy notched in earnings of $15.78 per share, with revenue of $9.1 billion.
• The natural gas industry is a critical component of the global energy sector, providing a significant portion of the world’s energy needs.

Yes, as I have mentioned many times, natural gas futures are un-affectionately known as “The Widowmaker” among commodities pit traders, owing to that contract’s frequent bouts of volatility. While we experienced the down, down, down for the first months of 2023, we may have seen an inflection point here. Cheniere Energy (LNG, $157.60) is a producer and exporter of liquefied natural gas (LNG) in the U.S. Top-rated analyst Ryan Todd from Piper Sandler has a Buy rating and $173 price target on VLO, which implies upside potential of 23.9% to current levels. This is even after one of the Street’s best energy stocks has seen a strong rally of nearly 37% over the past year. Top-rated Jefferies analyst Lloyd Byrneis is sidelined on the stock with a Hold rating, but a $120 price target.