The natural gas sector comprises of companies involved in the exploration, production, transportation, and distribution of natural gas. These firms range from upstream producers to midstream pipeline operators and downstream utilities. Natural gas stocks represent ownership in these companies traded on public exchanges. The sector has gained attention as natural gas plays a crucial role in the transition to cleaner energy sources.
Investing in natural gas stocks can offer several potential benefits. Natural gas is often seen as a bridge fuel between coal and renewable energy. Many countries are increasing natural gas usage to reduce carbon emissions. Natural gas companies often provide steady dividends, appealing to income-focused investors. However, the sector also faces challenges. Natural gas prices can be volatile, impacting company profits. Regulatory changes and environmental concerns can affect the industry’s growth prospects. The shift towards renewable energy may pose long-term risks to natural gas demand.
When considering natural gas stocks, it’s important to evaluate a company’s reserves and production costs. Assess their position in the natural gas value chain and geographic diversification. Look at factors like pipeline infrastructure and long-term supply contracts. Consider the regulatory environment in key markets where the company operates. Be aware of technological advancements in renewable energy that could impact natural gas demand. Taking this into consideration, let’s explore two natural gas stocks to watch in the stock market now.
Natural Gas Stocks To Watch Today
- Kinder Morgan Inc. (NYSE: KMI)
- Cheniere Energy Inc. (NYSEAMERICAN: LNG)
Kinder Morgan (KMI Stock)
Starting off, Kinder Morgan Inc. (KMI) is one of North America’s largest energy infrastructure companies. They own and operate an extensive network of pipelines for transporting natural gas, crude oil, and other petroleum products. Kinder Morgan is also involved in storing and processing natural gas, as well as handling various terminals for bulk commodities.
Back in July, Kinder Morgan reported its second quarter of 2024 financial results. Diving right in, the company announced Q2 2024 earnings of $0.25 per share, with revenue of $3.57 billion. This came in versus estimates for the quarter which were an EPS of $0.25, and revenue estimates of $3.88 billion. Additionally, the company said it continues to estimate 2024 earnings of approximately $1.22 per share.
So far this year, shares of KMI stock have advanced by 23.89% year-to-date. Meanwhile, during Thursday’s premarket trading action, Kinder Morgan stock is trading red by 1.40%, at $22.09 a share.
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Cheniere Energy (LNG Stock)
Following, Cheniere Energy Inc. (LNG) is a leading liquefied natural gas (LNG) company in the United States. They operate LNG terminals where natural gas is liquefied for export to global markets. Cheniere was one of the first companies to export LNG from the continental United States. They are involved in the full LNG value chain, from production and liquefaction to shipping and regasification.
Just last month, Cheniere Energy reported better-than-expected second-quarter 2024 financial and operating results. In detail, the company notched in an EPS of $3.84 per share, with revenue of $3.25 billion for Q2 2024. This is in comparison with Wall Street’s consensus estimates for the quarter, which were an EPS of $1.71 per share, on revenue estimates of $3.47 billion.
Year-to-date, shares of LNG stock have gained by 6.09% so far. Moreover, during Thursday’s premarket trading session, Cheniere Energy stock is trading modestly lower by 0.13%, currently trading at $179.49 a share.
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