7 Best Natural Gas Stocks to Buy Now

However, the Asia Pacific region will be subject to high risk from rising prices and slow economic growth. Natural Gas Combined Cycle Power Plant with sunset and light orange. With the decline in its share price, Matador’s valuation profile has shifted for the better. Two months ago, MTDR was considered “modestly overvalued,” according to GuruFocus’ proprietary calculation.

Reach your investors/buyers by advertising on the website, eMail campaigns, webcasts and videos. However, the company’s net loss in Q3 widened to $9.54 per share as compared to a loss of $4.27 in the same period last year. Investors share Sorbara’s optimism, as the stock has shot up more than 40% in 2022.

This means that companies involved in natural gas should increase revenue. It was announced on the morning of October 6 that Shell expected its earnings for the third quarter of 2022 to be lower due to decreased refining margins and lower profits from trading gas. This warning of lower profits may lead the stock to drop a bit, making it a decent natural gas stock to invest in. With the possibility of global demand for LNG doubling by 2040, companies involved in natural gas are set to increase in revenue. Exploration & production (E&P) is a segment of the oil and gas industry linked to the initial process of searching for and extracting oil and gas. Downstream operations are oil and gas functions that occur after the production phase to the point of sale.

However, he added, the longer Russia’s invasion of Ukraine continues and disrupts European gas supply, the “more realistic” Tellurian’s vision becomes. 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. As with the other stocks on this list, WDS has lost momentum recently. Shares are down more than 10% since hitting a 52-week high in November. Download Q.ai today for access to AI-powered investment strategies. When you deposit $100, we’ll add an additional $100 to your account.

Gran Tierra Energy

The analyst’s new price target implies upside potential of 47.3% to current levels – even after one of the Street’s best energy stocks has seen a strong rally of nearly 70% this past year. EOG is another of the Strong Buy-rated energy stocks featured here, thanks to 18 Buys and just two Holds among analysts who have released notes over the past three months. Check out other analysts’ price targets and analysis for EOG at TipRanks. Top-rated Jefferies analyst Lloyd Byrneis is sidelined on the stock with a Hold rating, but recently raised its price target to $120 from $105. The analyst expects that PSX is likely to generate free cash flows of approximately $16 billion from 2023 to 2025 and return around $10.5 billion to stockholders in the same period. If you’re looking for the single best position in the natural gas industry, well, it may not be a natural gas stock at all.

In addition, EOG declared a quarterly dividend of 82.5 cents per share, a rise of 10% with an annualized dividend of $3.30 per share. For Siebert Williams Shank analyst Gabriele Sorbara, PXD’s fourth-quarter production guidance remains a concern. In Q4, Pioneer Natural Resources has guided for oil production to average between 346.5 and 361.5 MBOPD, and total production is expected to average between 655 to 680 MBOEPD. More encouragingly, earlier this month, the company outlined plans to increase shareholder distributions to a range of $10 billion to $12 billion by the end of 2024 through stock buybacks and dividends. In addition, PSX’s board of directors approved a $5 billion increase to the company’s share repurchase program, which brings the total amount of stock buybacks authorized by the board since 2012 to $20 billion.

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. 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.

Jim Cramer says he likes these 5 liquified natural gas stocks for the long haul

Pipeline companies must build and operate the midstream infrastructure, such as pipelines, processing plants, and storage facilities, to transport gas from production basins to end markets. Meanwhile, natural gas needs to become a liquid for transportation overseas. Kinder Morgan is a leader in operating energy infrastructure in North America. It controls the nation’s largest natural gas transmission network, which moves 40% of the natural gas produced in the U.S.

While the hydrocarbon space carries a reputation for generous passive income opportunities, BSM stands out. Its forward yield of 11.1% is well above the energy sector’s average yield of 4.2%. However, sustainability questions will cloud this dividend, as the payout ratio of 86% is on the high side. It’s expected that the global demand for LNG could grow for a long period as it could double to more than 700 million tons per annum by 2040.

What Is the Best Natural Gas Stock To Invest In?

From there, it enjoys strong growth potential, with a three-year revenue growth rate that beats out 75% of the competition. Finally, Pioneer’s net margin of 26% ranks better than 80% of its peers. With geopolitical dynamics sparking a radical paradigm shift in the hydrocarbon energy space, it’s time to consider the broke millennial review to buy now. Fundamentally, one of the main catalysts – if not the catalyst – for higher energy prices centers on Russia’s invasion of Ukraine.

• In September 2021, Ovintiv announced a buyback of up to 26 million shares.
• The company’s strong global position as a major LNG supplier should help increase future revenue.
• Additionally, monetary dynamics such as skyrocketing inflation also boosted energy prices.
• Cheniere, a pioneer in the LNG industry, is “on track to make $8.62 per share this year, that number expected to grow to $16 in 2023,” Cramer said.
• Specifically, its net margin of 60.3% ranks above 93% of the industry.

Currently, its three-year revenue growth rate is 22.7%, beating out more than 87% of its rivals. Further, its three-year EBITDA growth rate stands at 12.5%, better than 62% of the industry. On the bottom line, Diamondback’s net margin stands at a whopping 45.5%, superior to 90% of its peers.

Top 5 Oil and Gas Stocks on the TSX and TSXV in 2022

It also has a stable of what it calls “low risk oil and natural gas development assets.” “Our Lower 48 business unit accomplished record production of more than 1 million barrels of oil equivalent per day.” Indeed, even in Q3, EOG’s production of oil, natural gas and natural gas liquids was well above its midpoint guidance.

Its core asset base consists of 2,300 boe/d of high-margin, low-decline stable production and a combined area of 33,000 acres held by production. Pieridae Energy is focused on exploring for and extracting natural gas; it also has midstream infrastructure and integration opportunities in liquefied natural gas exports. Wescan Energy is an oil and gas exploration, development and production company with light oil and liquids-rich natural gas operations and reserves in Alberta and Saskatchewan. Earlier this year, the company raised C$500,000 in a private placement to fund further development and completion of a new well on its core property in Alberta. In November, Kolibri reported that its net income for the third quarter was US$9.3 million, compared to net income of US$0.6 million for the year-ago period. The company attributes this large net income increase to rising average oil prices and increased production, as well as a quarterly unrealized gain on commodities contracts of US$4.6 million.

Hess Corporation (NYSE:HES)

There are many publicly traded companies in the natural gas industry, and their stock performance will tend to improve when the price of natural gas rises. However, if investing in natural gas stocks, it’s important to remember certified trust and fiduciary advisor that there are factors other than the price of natural gas that affect a company’s share price. In other words, just because natural gas prices are up doesn’t mean natural gas stocks will rise at the same rate, or at all.

Still, Blanch sees “upside to oil prices from the European Union’s Russia oil embargo, a faster-than-projected China reopening, and a potential Fed pivot in the first quarter of 2023.” The stock closed at $2.72 per share on Oct. 18, making it inherently risky due to its low price. But analysts seem to like it, giving it a consensus recommendation of 2.5 on a scale of 1 — “strong buy” — to 5 — “sell”. Coterra Energy stock closed at $29.44 on Oct. 18 but has a one-year average target estimate of $36.91. Cheniere, a pioneer in the LNG industry, is “on track to make $8.62 per share this year, that number expected to grow to $16 in 2023,” Cramer said. On Wednesday, the “Mad Money” host highlighted five companies in the industry he believes could be worthwhile long-term investments.

The Dow Jones Industrial Average rose Jan. 11, with Wall Street investors… 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. Noble Corp. is one of the world’s largest offshore drilling contractors. Although it’s trading closer to its 52-week high than its 52-week low, analysts give it a “strong buy” rating. When the market gets challenging, investors should look to capitalize by building positions “in companies with exposure to powerful long-term themes, like the rise of LNG,” the “Mad Money” host said.

The long-term supply and demand mix for oil and natural gas appears may set up a ripe play for investors

Production averaged approximately 3,578 million cubic feet of equivalent a day in 2020 at a ratio of 33% liquids and 67% natural gas. Gurufocus labels TPL “modestly overvalued,” warning investors they’ll pay a premium for shares. And its P/E and forward P/E ratios are among the highest in the industry. Yet, Texas Pacific stands out among the best natural gas stocks to buy for its financial strength.

Moreover, SLB’s board of directors approved a quarterly cash dividend of 17.5 cents per share. In November, SLB announced that it intends to increase its quarterly cash dividend by 43% to 25 cents per share, beginning with the April 2023 payout. “We used those proceeds to reduce short-term debt and create additional capacity for attractive investments, including opportunistic share repurchases.” As such, investors would be wise to keep a close eye on energy stocks heading into the new year. And as recession risks abound heading into the new year, “global oil demand should slow further,” says Francisco Blanch, head of Global Commodities and Derivatives Research at BofA Global Research.

Comstock’s next quarterly dividend of $0.125 per common share will be paid on Dec. 15 to shareholders as of Dec. 1, 2022. Tellurian Inc. is an energy company focused on natural gas production, LNG marketing, and infrastructure assets. Its operations include a terminal facility, pipelines, and upstream natural gas assets. Tellurian reported a 25% increase in net natural gas production and 32% increase in natural gas sales in its latest quarter on a sequential basis.

What’s more, it is the only sector to post a double-digit percentage gain on the year. Natural gas stocks are shares in dynamic trailing stop companies that produce natural gas. Here are a few characteristics to look for when you shop for natural gas stocks.

Specifically, its net margin of 60.3% ranks above 93% of the industry. Still, it’s worth noting the tremendous momentum that quality hydrocarbon companies enjoy. They have operations in the Appalachian Basin and the southwestern U.S., where they’re focused on being a leading independent oil and gas producer. RRC reported revenue of $1.2 billion for the second quarter of 2022.

Other pockets of organic material became coal, petroleum and other fossil fuels. 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. 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.