Top natural gas stocks: Top Natural Gas Stocks for Q2 2023
Kinder Morgan’s energy transition ventures business unit aims to identify, analyze, and pursue commercial opportunities as the energy sector transitions to lower-carbon fuel sources. Kinder Morgan’s extensive natural gas infrastructure footprint makes it potentially suited to store and transport lower-carbon fuel sources such as RNG and hydrogen, positioning it for the future of energy. The oil giant reported solid Q4 results, with revenues of $19.3 billion, up 20.7% year-over-year.
The terminals store renewable fuels, chemicals, and various other products. LNG exports on the rise, Kinder Morgan will continue to reap the benefits due to its network of pipelines and storage facilities. While we’ve written about renewable energy stocks, it’s important to acknowledge that the world still uses natural gas. We will focus on natural gas companies that work on finding, producing, delivering, and exporting the energy source. Natural gas corporations continue to be profitable ventures for investors while also powering the country.
How the Stock Market Performed Under Each President
The energy sector is a category of companies that play a role in extracting, refining, or supplying consumable fuels, such as coal, oil, and gas. While some of the companies aren’t pure-play natural gas companies, they focus a substantial amount of their production or throughput on it. 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. LNG is attracting heavy interest because it’s an option to replace Russian gas in Europe.
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. 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.
AI technology is here to stay, so companies that utilize it should be well positioned for the future. After two banner years in 2020 and 2021, stocks fell into a bear market in 2022. Many well-known names dropped by more than 20%, and some actually cratered by… The stock closed at $27.19 on Feb. 7, well above its 52-week low of $18.94, and it has a one-year target price estimate of $38.50. DCP Midstream has an annual dividend yield of 4.13%, making it a good choice for those looking for income.
Top natural gas stocks in 2023
Ovintiv Inc. produces natural gas, natural gas liquids, oil and condensate. The company touts its commitment to generating free cash flow and returning money to shareholders. In September 2021, Ovintiv announced a buyback of up to 26 million shares.
However, if investing in natural gas stocks, it’s important to remember 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. However, it’s important to remember that natural gas stocks can be very volatile investments. 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.
This means that companies involved in natural gas should increase revenue. 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 to be transported with specialized ships. Billions of dollars are being invested in facilities to match this growing worldwide demand for this energy source.
So if you want to participate in the natural gas industry but don’t want to have to decide on a single stock, this might be worth a look. Cheniere has exhibited steady gains in revenues since the third quarter of 2020. In Q4 2022, the company’s revenues were up 39% year-over-year to $9.1 billion.
Can You Get Rich Off Penny Stocks?
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. As of early 2023, it had 70,000 miles of natural gas pipelines to go along with 700 billion cubic feet of storage capacity — the latter representing about 15% of the U.S. storage total.
Kinder Morgan’s infrastructure connects every major natural gas resource play to key demand centers. EQT expects to use some of its free cash flow to repay debt and strengthen its financial position. The debt reduction could leave the company with ample cash for other shareholder-friendly activities such as dividends, share repurchases, and accretive acquisitions.
However, natural gas may hold on longer purely because of its versatility and better public image. Antero has a market cap of $4.8B with strong growth from the low $2.00 range up to its current price. This plan requires shifting away to non-Russian sources, saving energy, and spending more on renewable energy sources at the same time.
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. is one of the largest U.S. energy infrastructure companies, with pipelines that transport natural gas, crude oil, gasoline and carbon dioxide.
Is natural gas a good investment?
EQT Corp. 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. Natural gas stocks can be volitile, but investing in them can be a great way to diversify your portfolio. The once swampy earth and its decomposed plants and animals produced layers and layers of carbon-based materials.
The companies that provide natural gas are divided into three categories. Upstream companies, otherwise known as exploration and production companies, find the gas and get it out of the ground. Midstream companies process the gas and move it from the well to the downstream companies, which distribute it to consumers. You can review the list above of Benzinga’s favorite natural gas stocks.
DCP Midstream LP
For fiscal 2023, LNG is guiding for adjusted EBITDA in the range of $8.0 billion to $8.5 billion, while it expects distributable cash flows between $5.5 billion and $6.06 billion. “Our refineries operated at a 97 percent capacity utilization rate in the fourth quarter, which is the highest utilization rate for our system since 2018,” said Joe Gorder, Valero’s chairman and CEO. The company’s diversified refinery base is located throughout the U.S., Canada and the U.K. In late 2022, the company upped its quarterly dividend by 11% to 51 cents per share and raised its existing share buyback authorization by $20 billion. EOG posted revenues of $6.7 billion in Q4, a jump of 11.7% year-over-year. Adjusted earnings came in at $3.30 per share versus $3.09 in the same period a year ago.
Natural gas is the cleanest fossil fuel, which makes it a good bridge to renewable energy since a full conversion to solar or wind energy sources isn’t readily available at the moment. Most investors are familiar with the term “IPO,” which stands for initial public offering. An IPO is the first time a company issues stock to the public, an event that is sometimes termed “going… Karen Doyle is a personal finance writer with over 20 years’ experience writing about investments, money management and financial planning.