Best Natural Gas Stocks To Buy Now REPACK

In other words, short-term volatility is likely to plague even the best natural gas stocks. However, the longer-term outlook for the sector is more bullish than recent headlines and trading action suggest.

best natural gas stocks to buy now

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Nevertheless, Black Stone represents one of the best natural gas stocks to buy because of its robust balance sheet and strong profitability metrics. Specifically, its net margin of nearly 70% ranks above almost 95% of the industry.

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. However, this softness could offer an attractive entry point.

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. "I think this will be one of the best stories of the next decade, regardless of what the Fed's doing right now or [Russian president Vladimir Putin] is doing for that matter."

"Now, the stock had been on a nice roll, but in recent weeks it's been clobbered, including a nasty 8% decline just yesterday, possibly because European regulators started talking about imposing price controls on natural gas," Cramer said. "Still, Excelerate's started making deals with European countries that desperately need energy. Even before that, they had 223% revenue growth in the second quarter, but now you're basically getting that quarter for free."

"While this company's basically a toll road operator for energy, they've also got a number of irons in the fire for liquefied natural gas," Cramer said. 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. The rise of this sub-sector is terrific for their core business. It may take a long time to kick in, but Enbridge is paying you to wait with that 6.3% yield."

There are many companies involved in the processing of natural gas with three distinct categories: upstream, midstream, and downstream. Upstream companies focus on exploration and production. Midstream companies take care of transportation and storage. Downstream companies handle the refining and marketing of the energy source.

The main disadvantage of natural gas is that it must travel through pipelines, which can pose a range of logistical and environmental challenges, particularly across oceans. Companies are turning natural gas into a pressurized liquid (liquefied natural gas) to be transported with specialized ships. Billions of dollars are being invested in facilities to match this growing worldwide demand for this energy source.

The current geopolitical situation with the Russian invasion of Ukraine has impacted crude oil prices. With Russia cutting back supplies to the European countries that have sided with Ukraine, the demand and supply for crude oil has been severely disrupted. As a result of all these issues, natural gas is currently one of the most important commodities.

Liquefied natural gas has become a hot topic since Europe has imported a record amount of LNG in 2022. The rising prices of natural gas in Europe have impacted the prices of everyday items. Countries in Europe are looking to secure LNG cargoes before the winter begins to restore some balance to supply and demand.

This Houston-based company is the biggest national producer of LNG. Cheniere Energy was the first firm to be granted regulatory approval for exporting LNG, and the company has enjoyed the perks of being a first-mover in this industry. Long-term contracts and strong operations will help this company generate more revenue moving forward with the European energy crisis still ongoing. From an investment perspective, the company has been able to speed up its debt repayment and capital return initiatives. They also announced an increase of 20% to the dividend payments for investors. This full-service LNG provider is worth watching as the demand for natural gas grows worldwide.

This Pittsburgh-based natural gas producer is on track to make record profits this year as energy prices remain high. With the price of natural gas going up, EQT can capitalize on this with its upstream operations as a pure-play Appalachian explorer. EQT is already one of the largest natural gas producers in the U.S. The strategic positioning in the core of the southwest Appalachians, along with horizontal drilling, will benefit the company. With a wide inventory of drilling locations and many undeveloped sites, prospects look promising for the future of this stock.

We included stocks in this list that deal with the production of natural gas and some that handle the infrastructure associated with the energy source. We will continue to monitor the prices of natural gas.

Read on as we look at eight of the best energy stocks to buy now. To compile the list, we turned to the TipRanks database (opens in new tab). Each of the names featured here boasts either a Strong Buy or Moderate Buy rating from Wall Street analysts, and each offers major upside potential based on their consensus price targets.

Kinder Morgan (KMI (opens in new tab), $117.77) is a large energy infrastructure company in North America. The company owns an interest in or operates around 83,000 miles of pipelines, 141 terminals, and has 700 billion cubic feet of working natural gas storage capacity. KMI also has renewable natural gas generation capacity of approximately 2.2 billion cubic feet (Bcf) per year of gross production.

The Street is also bullish on one of the best energy stocks for 2023, with a unanimous 18 Buys among analysts that have sounded off over the past three months. TipRanks offers up a full analyst rundown of SLB shares (opens in new tab).

Phillips 66 (PSX (opens in new tab), $100.90) is a diversified energy company that processes and markets fuels worldwide. While the Houston, Texas-based firm's fuel products primarily come from petroleum refining, it is also active in the natural gas trade and supplies chemicals and specialty products to global markets.

DCP Midstream is engaged in the business of gathering, processing, transporting, storing and marketing natural gas. In August, Phillips increased its economic interest in this venture from 28.3% to 43.3%. DCP Midstream is a master limited partnership between PSX and Enbridge.

EOG Resources (EOG (opens in new tab), $124.57) is an American company engaged in the exploration, development, production and marketing of crude oil, natural gas and natural gas liquids (NGLs). The firm has reserves in the U.S. and Trinidad, and as of Dec. 31, 2021, it had net proved reserves of 3.7 million barrels of oil equivalent (MMboe). These reserves were made up of 41% crude oil and condensate, 22% NGLs and 37% natural gas.

Indeed, even in Q3, EOG's production of oil, natural gas and natural gas liquids was well above its midpoint guidance. However, capital expenditures of $1.16 billion was below the midpoint of its outlook.

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. (opens in new tab)

"Refining fundamentals remain strong as product demand through our system has surpassed 2019 levels, while global product supply remains constrained due to capacity reductions and high natural gas prices in Europe are setting a higher floor on margins," said Joe Gorder, Valero's chairman and CEO.

Cheniere Energy (LNG (opens in new tab), $163.10) is a producer and exporter of liquefied natural gas (LNG) in the U.S. The company has "one of the largest liquefaction platforms in the world, consisting of the Sabine Pass and Corpus Christi liquefaction facilities on the U.S. Gulf Coast," with a total production capacity of approximately 45 million tonnes per annum (mtpa) of LNG in operation.

Cheniere has exhibited steady gains in revenues since the third quarter of 2020. In Q3 2022, the company's revenues were up 177% year-over-year to $8.9 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 third quarter was 559 trillion Btu, up from 500 trillion in the same period last year.

LNG is another one of Wall Street's favorite energy stocks, as evidenced by the consensus Strong Buy rating and $211 price target. This average price target indicates that even after a rally of more than 66% in the past year, Wall Street pros see additional upside of roughly 25% for the shares. See the full rundown of analyst ratings for LNG on TipRanks (opens in new tab).

Shrilekha Pethe has been extensively covering and writing about the U.S. financial markets since 2015. Prior to writing about the world of finance, Shrilekha worked as an equity research analyst for a bulge-bracket client in investment banking, Credit Suisse. Her sole objective is to help investors make better and informed decisions. Her core competency lies in analyzing stocks across different sectors, from technology to mining, and banking to oil and gas. She holds a postgraduate degree in finance from ICFAI Business School, Pune, and is currently on her way to becoming a Certified Financial Planner. Shrilekha has been writing for TipRanks since January 2021. You can contact Shrilekha on LinkedIn."}; var triggerHydrate = function() window.sliceComponents.authorBio.hydrate(data, componentContainer); var triggerScriptLoadThenHydrate = function() if (window.sliceComponents.authorBio === undefined) var script = document.createElement('script'); script.src = ' -9-3/authorBio.js'; script.async = true; script.id = 'vanilla-slice-authorBio-component-script'; script.onload = () => window.sliceComponents.authorBio = authorBio; triggerHydrate(); ; document.head.append(script); else triggerHydrate(); if (window.lazyObserveElement) window.lazyObserveElement(componentContainer, triggerScriptLoadThenHydrate, 1500); else console.log('Could not lazy load slice JS for authorBio') } }).catch(err => console.log('Hydration Script has failed for authorBio Slice', err)); }).catch(err => console.log('Externals script failed to load', err));Shrilekha PetheSocial Links NavigationContributing Writer, Kiplinger.comShrilekha Pethe has been extensively covering and writing about the U.S. financial markets since 2015. Prior to writing about the world of finance, Shrilekha worked as an equity research analyst for a bulge-bracket client in investment banking, Credit Suisse. Her sole objective is to help investors make better and informed decisions. Her core competency lies in analyzing stocks across different sectors, from technology to mining, and banking to oil and gas. She holds a postgraduate degree in finance from ICFAI Business School, Pune, and is currently on her way to becoming a Certified Financial Planner. Shrilekha has been writing for TipRanks (opens in new tab) since January 2021. You can contact Shrilekha on LinkedIn (opens in new tab). 041b061a72