The natural gas sector represents a crucial segment of the energy industry, responsible for producing, distributing, and selling natural gas, a clean-burning fossil fuel. Natural gas has gained significant attention in recent years, primarily due to its role as a bridge energy source in the global transition from coal to renewable energies. It serves both residential and commercial sectors, fueling everything from homes and businesses to power plants, and even vehicles in some parts of the world.
Natural gas stocks comprise companies that operate within various facets of the natural gas value chain, from exploration and production to transportation, storage, and distribution. As the demand for cleaner energy has grown, so too has the interest in natural gas stocks. These companies often offer investors a chance to capitalize on the expanding market, especially as innovations and infrastructural developments continue to position natural gas as a vital component in global energy portfolios.
For investors, the natural gas sector offers diverse opportunities. While inherently volatile due to factors like geopolitical events, weather patterns, and shifts in global energy policy, the sector presents potential for significant returns. As with any investment, it’s crucial for investors to conduct thorough research, understand the dynamics of the natural gas market, and consider the long-term outlook of the industry when making investment decisions. That said, let’s look at two trending natural gas stocks to keep an eye on in the stock market today.
Natural Gas Stocks To Buy [Or Avoid] Right Now
Occidental Petroleum (OXY Stock)
Starting off, Occidental Petroleum Corporation (OXY) is an international oil and gas exploration and production company. The company has a broad range of operations worldwide and has been involved in various oil extraction techniques and carbon capture projects.
At the beginning of last month, Occidental Petroleum reported its second quarter 2023 financial results. In detail, the company notched in Q2 2023 earnings of $0.68 per share and revenue of $6.73 billion for the quarter. This is compared to Wall Street’s consensus estimates which were earnings of $0.70 per share and revenue of $6.82 billion.
So far in 2023, shares of OXY stock are up 3.75% year-to-date. Meanwhile, during Friday morning’s trading session, OXY stock is trading higher on the day so far by 1.14% at $63.28 a share.
EQT Corp (EQT Stock)
Second, EQT Corporation (EQT) is recognized as the largest natural gas producer in the United States. Utilizing advanced drilling methods, EQT focuses on natural gas production, aiming to supply energy to diverse markets in a sustainable manner.
Earlier this week, EQT Corp announced a preliminary agreement with Commonwealth LNG for liquefaction services at Commonwealth’s facility in Cameron, Louisiana. This Heads of Agreement (HOA) aims to produce 1 million tons of LNG annually over a 15-year period. While the specific terms are still under negotiation, Commonwealth plans to make a final investment decision on the project by early 2024, with the first shipments anticipated in 2027.
Year-to-date, shares of EQT stock have climbed by 21.87% so far. Moreover, during Friday’s mid-morning trading action, EQT Corp stock is trading modestly higher by 0.13% at $38.79 a share.