In addition, Range Resources reported a 181.8% increase in revenue during the same period, a year prior. Also in the report, the company announced that they had repurchased 4.5 million shares at an average of $28.85 per share, totaling approximately $129.82 million in share buybacks for the quarter. Meanwhile, only a handful of oil and gas stocks have as much potential upside as PDCE shares, at least according to the analyst community. The pros’ average price target of $93.14 gives PDCE implied upside of 20% in the next 12 months or so.

Its forward EV/Sales multiple of 0.02 is 98.8% lower than the industry average of 2.12. GTE’s shares have gained 139.8% over the past year to close the last trading session at $1.66. In terms of its forward EV/Sales, GTE is currently trading at 1.79x, 15.5% lower than the industry average of 2.12x. Its forward EV/EBITDA multiple of 2.39 is 65.6% lower than the industry average of 6.94. In terms of its forward EV/Sales, YPF is currently trading at 0.62x, 70.9% lower than the industry average of 2.12x. Its forward Price/Sales multiple of 0.20 is 87.2% lower than the industry average of 1.60.

Additionally, the stocks had to have a minimum of 10 Buy recommendations from industry analysts, of which at least five had to be Strong Buy ratings. 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. Antero Resources, headquartered in Denver, handles exploration and production of natural gas and natural gas liquids in the United States and Canada.

• 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.
• Energy prices have soared this year, and there has been a lot of focus on the different options for powering our homes, offices and cars.
• One secret to uncovering the best natural gas stocks is to focus on the lowest cost producers.

The stock closed at $40.08 on Sept. 9, well above its 52-week low of $15.38, and it has a one-year target estimate of $51.38. EQT closed at $48.35 on Sept. 9 and has a one-year target estimate of $60.40 per share. DCP Midstream has an annual dividend yield of 4.52%, making it a good choice for those looking for income.

PDC Energy

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You can choose from companies in different parts of the process — upstream, midstream or downstream. Or you can choose based on the type of stock — value, growth or momentum. $40.8 billionOne of the largest natural gas infrastructure companies. It is difficult to find pure play natural gas companies, but many energy companies have large natural gas businesses. Major players include Chesapeake Energy Corp., Antero Resources Corp., and Range Resources Corp.

As mentioned, volatility in natural gas demand often leads to big spikes and declines in natural gas prices. At the end of 2017, analysts thought a decrease in natural gas production could reduce inventories and drive up demand; other experts expected prices to remain low over the next few years. Occidental Petroleum Corporation 20 aud to sek exchange rate is an American oil and gas exploration and production company. The company has operations in the United States, the Middle East and Latin America. And, founded in 1920, it is one of the oldest oil and gas companies in the United States. Occidental Petroleum is a large company with a market cap of over $65 billion.

How to Buy Energy Stocks

Now that the world is beginning to reopen, there could be a new surge in travel, pushing up demand and prices for the best energy stocks. As countries like China and India continue to develop, their need for energy will grow, too. This means there will be plenty of future demand both for existing energy sources like oil and gas as well as growing needs for alternative sources. Headquartered in the United Kingdom, BP got its start in 1909 with the discovery of oil in Iran.

The U.S. is bracing itself for an expensive winter as natural gas prices continue an uphill trek. Although that’s a worry for you and me, natural gas producers like EQT and Devon Energy are all set to benefit from this. To find them, we screened the energy sector of the Russell 3000 for stocks with implied upside of at least 20% in the next 12 months or so, based on analysts’ average price targets. We limited ourselves to Buy-rated names with minimum market values of $3 billion.

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. Natural gas prices have risen by 700% in Europe since the start of 2021. This has taken the continent within touching distance of a recession as the increase in the price of natural gas has boosted the prices of everyday products and taken inflation to a multi-decade high. To combat this inflation, central banks are raising benchmark interest rates, which is further dampening demand.

Best Online Brokers for Natural Gas Stock

This came in under analysts’ consensus estimates of $1.90 earnings per share, and revenue of $1.7 billion. Additionally, Antero Resources was able to purchase an amount totaling $247 million of shares during the second quarter. No matter if you’re investing in major corporations like ExxonMobil or you’ve only got the funds for a few stocks under $10, energy investments can provide a valuable stream of passive income for your portfolio. However, it’s important to remember that natural gas stocks can be very volatile investments. Millions of Americans – through retirement funds like 401-Ks and private and public pension funds .

• Its forward Price/Sales multiple of 0.20 is 87.2% lower than the industry average of 1.60.
• Although the favorable gas market has propelled CHK to a gain of more than 45% for the year-to-date through April 15, analysts say it’s still undervalued.
• Moving along, in July the company reported a beat for its most recent Q financial results.
• Income investors will appreciate that the company’s long-standing focus on free cash flow led to payment of another $1.00 per share special dividend, while also strengthening its balance sheet.
• However, like oil, the price of natural gas can be quite volatile.
• At 2,874 Bcf, total working gas is within the five-year historical range.

GTE is a Canada-based energy company focused on exploring and producing oil and natural gas in Colombia and Ecuador. In the 2022 second quarter, net income attributable to KMI stood at $635 million, compared to $757 million net loss in the year-ago period. Distributable cash flow increased to $1.18 billion from $1.03 billion in the year-ago period. Adjusted earnings increased to $621 million from $516 million year-over-year.

Best Natural Gas Stocks To Invest In for 2022

Instead, specialized facilities supercool the gas to turn it into a liquid, which can then go on gas-carrying ships and be exported to global markets. Cheniere sells the bulk of its LNG under long-term, fixed-rate contracts. It expects to produce a cumulative $10 billion in distributable cash flow through 2024. The Dow Jones Utility Average is a price-weighted average of 15 utility stocks traded in the U.S.

Just over a month ago, Enbridge announced a partnership with Pacific Energy to build an LNG export terminal in British Columbia. Plus, their pipeline network transports a great deal of the gas that goes to other people’s export terminals. It may take a long time to kick in, but Enbridge is paying you to wait with that 6.3% yield.» In this article, we will discuss the 10 best chart patterns for swing trading to buy now. If you want to skip our analysis of the gas market, go directly to the 5 Best Natural Gas Stocks to Buy Now. Just four analysts watch the stock, but they rate it a 1.3, which is a “strong buy,” and predict a target price of $24.17 — 39% above its closing price of $17.37 on Sept. 9.

Diamondback Energy

One secret to uncovering the best natural gas stocks is to focus on the lowest cost producers. These companies should still be able to make money when prices decline. Another key criteria is finding gas producers that have strong balance sheets. That will give them the financial flexibility to weather the storms. 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.

EnerCom Services

As one of the largest and lowest-cost natural gas producers, EQT stands out as a top natural gas stock. Likewise, the steady cash flow generated by natural gas infrastructure companies such as Kinder Morgan and Cheniere Energy makes them stand out as top natural gas stocks. blueberry markets review It is engaged in storage and transportation of oil and gas, and other products. It owns an interest in or operates approximately 83,000 miles of pipelines and 144 terminals. Its pipelines transport natural gas, refined petroleum products, crude oil, carbon dioxide and more.