Choose a platform that aligns with your preferences and financial goals. That said, our go-to broker for buying natural gas stocks is eToro. However, investors should exercise caution, conduct thorough research, and be aware of the risks that come along with investing in lower-priced, volatile stocks. Natural gas prices have corrected more than 70% since August 2022, making this commodity more attractive as a potential long investment. We’ll try to offer a diverse view of the sector and focus on a few of the best natural gas stocks, but we won’t even come close to covering all the possibly attractive stocks. BP was the largest producer of natural gas in the U.S., at nearly 14.5 billion cubic feet daily on average in Q3 2022.

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Kinder Morgan’s infrastructure connects every major natural gas resource play to key demand centers. However, it’s essential to stay informed about industry trends, market conditions, and company performance. ExxonMobil was the company with the highest natural gas production among oil supermajors in 2022. That year, the United States-based hydrocarbon producer reported a natural gas output of some 8.3 billion cubic feet per day. This compared to roughly 7.9 billion cubic feet per day attributed to Shell. Kinder Morgan Inc. is one of the largest U.S. energy infrastructure companies, with pipelines that transport natural gas, crude oil, gasoline and carbon dioxide.

However, it’s important to remember that natural gas stocks can be very volatile investments. A giant in the energy industry, ExxonMobil is a diversified company involved in various aspects of the energy sector, including natural gas. With a robust financial position and a history of adapting to changing market dynamics, ExxonMobil offers stability and growth potential for investors seeking exposure to natural gas. The shale revolution and the war in Ukraine have brought long-term changes to the natural gas markets, with extra value for US gas and LNG shipments.

We use cutting-edge AI models to forecast future prices for stocks and crypto. We did a little mythbusting on one of the burning questions of the moment. The views about companies, their securities and funds expressed in this article reflect the personal opinions of the individual writer. They do not represent the opinions of Vertigo Studio SA (publishers of FinMasters) on whether to buy, sell or hold shares of any particular stock.

Cheniere Energy, Inc. (NYSE:LNG)

If all your eggs are in one basket and that basket fails, you lose all your eggs. It has a “strong buy” rating from six of 27 analysts watching it and a “buy” rating from 15 analysts. The price target is $30.56, which is about 25% higher than the current share price.

Best Natural Gas Stocks & ETFs to Watch in 2024 (

Analysts expect average annual gas prices to increase by more than 40% this year over the levels seen in 2024, as demand is projected to grow mainly due to a jump in LNG exports. When compared to other fossil fuels, like coal and heavy oils, natural gas is considered to be one of the cleaner fossil fuels because it releases fewer toxic compounds into the air when burned. Yes, natural gas may seem like a revelation to some, but to others, it is part of the problem. So, which stocks are adjusting to the new marketplace, calls for green energy and more? You want to get into natural gas now before it starts to slide, but how long could it be until the sector begins to fall off. However, with careful research and consideration of your risk tolerance, they can be a part of a diversified and potentially rewarding portfolio.

The continent has had to rely significantly more on imported LNG and less on gas delivered via pipelines from Russia since the Putin government’s invasion of Ukraine in 2022. You can review the list above of Benzinga’s favorite natural gas stocks. Make money by identifying growth stocks, companies poised to grow faster than the market or average business in its industry.

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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. This is because they’re less susceptible to the energy industry’s cyclical nature and pricing volatility. Most natural gas infrastructure companies generate stable cash flow by collecting fees as natural gas moves through their network, giving them a “toll booth” business model.

As a midstream company, it focuses on the infrastructure necessary to bring natural gas from the production site to end-users. 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. This ETF includes all the largest publicly traded energy companies, including Exxon, Chevron, Shell, TotalEnergies, etc… This gives it a lot of exposure to gas but also to oil, refining, etc. It can be a complement to more natural gas-focused stock picks, bringing exposure to the fossil fuel sector at large.

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Steve Rogers has been a professional writer and editor for over 30 years, specializing in personal finance, investment, and the impact of political trends on financial markets and personal finances. Natural gas might be as important to our future energy system as oil has since the 1950s. It is currently the best candidate to phase out coal while still producing easy-to-dispatch baseload power. This should give a lot of pricing for LNG carrier companies and make CoolCo’s fleet a valuable long-term asset. Still, investors will need to be cautious, as the shipping industry and shipping rates are famous for being extremely volatile. The company has benefitted from the rising shipping rates for LNG ships in response to the increased traffic and global demand following the war in Ukraine.

• At the end of 2020, the company reported proven reserves of 17.6 trillion cubic feet of natural gas equivalent resources.
• 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.
• Many natural gas stock prices fell sharply after the onset of the COVID-19 pandemic as natural gas demand fell.

For example, if the index rises by 1% over a day, then the ETP will rise by 3%. However, adjusted net income came in at $7 million, or 7 cents per share, up from $1.5 million, or 2 cents per diluted share, in the prior-year quarter. Oil and natural gas revenue increased 349% year-over-year (YOY) to $48 million. GAAP net loss of $16 million translated into 16 cents per diluted share.

• The First Trust Natural Gas ETF (FCG) is one example of a natural gas ETF.
• The price target is $30.56, which is about 25% higher than the current share price.
• Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations.
• Marcellus Shale was responsible for 78% of Coterra’s natural gas production in 2023.
• It’s delivering real cash flows, owns critical infrastructure, and holds stakes in other major growth stories.
• It also has a consensus price target of $32.83, which is 14.50% higher than its current share price.

Unfortunately, not every natural gas stock is equally as valuable. Natural gas stock prices are highly correlated with market natural gas prices, which means that they may quickly change in value depending on trade conditions. Many natural gas stock prices fell sharply after the onset of the COVID-19 pandemic as natural gas demand fell. Natural gas corporations continue to be profitable ventures for investors while also powering the country.

FAQs about investing in the best natural gas stocks

In fact, with the pricing environment of natural gas likely to remain healthy, EQT is expected to continue to generate handsome cashflows for shareholders. Energy Information Administration (“EIA”) revealed that it expects the natural gas spot price at $3.40 per million BTU for 2025, higher than $2.20 per million BTU last year. Higher prices are likely to aid the exploration and production companies’ bottom line. 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 makes it more of a trading instrument than a long-term holding but might be interesting for betting on natural gas price fluctuations. Tellurian is building energy infrastructure assets, including a natural gas pipeline and a liquified natural gas export facility, to be operated under the Driftwood name. But it is currently in the early stages of the construction process. The First Trust Natural Gas ETF (FCG) is one example of a natural gas ETF. It tracks the ISE-Revere top natural gas stocks Natural Gas Index and exposes investors to 43 different stocks.

The stock is down 11.04% over the past year and appears to be a good value. While ChargePoint gets the buzz, our analysts just picked 10 other stocks with greater potential. Past picks like Netflix and Nvidia turned $1,000 into over $600K and $800K. Though not exclusive to gas, this ETF includes many integrated oil and gas companies with significant gas exposure. Discover the top stocks handpicked by our analysts for high-growth potential.