5 Top Natural Gas Stocks To Watch In The Stock Market Now
While investors scour the stock market for good stocks to invest in, natural gas stocks are making waves. Namely, this would be thanks to U.S. natural gas prices soaring towards a seven-year high earlier today. Now, gas prices appear to be climbing across the northern hemisphere because of several reasons. For starters, concerns over a possible shortage have and continue to persist in this half of the year. Adding to these concerns, crude oil output in the U.S. is mostly at a standstill after Hurricane Ida.
On the demand-end, coronavirus cases continue to rise while the cold-weather season is fast approaching, amplifying the need for natural gas in consumer homes. All in all, we are now looking at a mix of production disruptions and robust demand for natural gases. Year-to-date U.S. natural gas prices are now up by over 120%. Because of all this, I could see the likes of Cabot Oil (NYSE: COG) and Cheniere Energy (NYSE: LNG) continue to gain in the stock market today. With all that said, here are five to watch now if you’re looking to jump on the natural gas train.
Top Natural Gas Stocks To Buy [Or Sell] Today
- Exxon Mobil Corporation (NYSE: XOM)
- Chevron Corporation (NYSE: CVX)
- ConocoPhillips (NYSE: COP)
- Antero Resources Corporation (NYSE: AR)
- Royal Dutch Shell (NYSE: RDS.A)
First up, we have ExxonMobil, one of the largest publicly traded international energy companies in the world. It holds an industry-leading inventory of resources and is one of the largest refiners and marketers of petroleum products. Its chemical company is also one of the largest in the world. Given how the company’s next-generation technologies help to meet the world’s energy demands, there is a lot of focus on the company right now. XOM stock currently trades at $54.00 as of 2:26 p.m. ET and is up by over 40% in the past year alone.
Earlier this week, the company signed an agreement with an independent validator to begin the certification process for natural gas produced at its Permian Basin facilities at Poker Lake, New Mexico. By doing this, certified natural gas validates emissions reduction efforts and helps customers meet their emission goals. Approximately 200 million cubic feet of natural gas per day from Poker Lake will be assessed and certified. Furthermore, this certified natural gas could be available to customers by the fourth quarter of 2021. Given this piece of news, will you consider adding XOM stock to your portfolio?
Chevron is a multinational energy corporation that is also one of the biggest oil and natural gas companies in the U.S. The company is engaged in every aspect of the natural gas business. This includes exploration, production, marketing, and trading. It also holds the largest natural gas resource position in Australia through the Gorgon and Wheatstone projects and the North West Shelf Venture. CVX stock currently trades at $95.89 as of 2:27 p.m. ET.
Today, the company announced a letter of intent to jointly invest with Gevo (NASDAQ: GEVO) in building and operating one or more new facilities that would produce sustainable aviation fuel. This will help lower the lifecycle carbon intensity of fuels used in the aviation industry. Gevo will operate its proprietary technology to produce sustainable aviation fuel and renewable blending components for motor gasoline to lower its lifecycle carbon intensity. In addition to co-investing with Gevo in one or more projects, Chevron would have the right to offtake approximately 150 million gallons per year to market to customers. With that being said, will you consider CVX stock a buy right now?
ConocoPhillips is a multinational corporation engaged in hydrocarbon exploration. To summarize, it has operations and activities in 15 countries, boasting $85 billion of total assets and approximately 10,000 employees. Furthermore, it made one of the largest discoveries of oil for the year 2020, with up to approximately 201 million barrels of oil discovered in the Slagugle well. COP stock currently trades at $55.41 as of 2:27 p.m. ET and is up by over 60% in the past year.
Last month, the company delivered a strong second quarter. Notably, the company reported earnings of $2.1 billion or $1.55 per share compared with earnings of $0.3 billion a year ago. This quarter’s performance follows a market update held in June, during which the company laid out a compelling 10-year plan. The plan provided a comprehensive outlook for the business post-Concho acquisition and reaffirmed its commitment to playing a vital role in the energy transition. It also delivered sector-leading returns on and of capital and reduced greenhouse gas emissions. For these reasons, do you think COP stock is worth buying?
Antero Resources Corporation
Following that, we will be taking a look at the Antero Resources Corporation. In brief, Antero primarily engages in hydrocarbon exploration. Aside from that, it also develops and produces natural gas, natural gas liquids (NGLs), and other related oil properties. The Colorado-based company’s reserves are situated in the Appalachian Basin. By Antero’s estimates, it is the “most integrated NGL and natural gas business” in the U.S. After considering all this, would AR stock be worth keeping an eye on right now?
As it stands, AR stock currently trades at $15.96 a share as of 2:27 p.m. ET. This would be after monumental gains of over 480% in the past year. If anything, Antero continues to perform on the financial front. Back in July, the company posted total revenue of $1.31 billion in its second-quarter fiscal. Notably, this marks a massive 100.27% jump year-over-year. CEO Paul Rady believes that this performance highlights Antero’s core strengths such as NGL development and its robust transportation portfolio. With that in mind, would AR stock be a top buy for you?
Royal Dutch Shell
Last but not least, we have global oil giant Royal Dutch Shell (Shell). For the uninitiated, it is a Dutch-British multinational oil and gas company with operations in over 70 countries globally. In detail, the company’s operations consist of three core divisions. They are Upstream, Integrated Gas and Renewables and Energy Solutions, and Downstream. All of which are managed by the company’s Projects & Technology arm towards driving research and innovation in the field.
To begin with, RDS.A stock is now trading at $39.25 as of 2:28 p.m. ET. Now, it would not surprise me to see investors eyeing the company’s shares given its recent move. As of late August, Shell is currently investing in Timi, its first offshore wellhead platform powered by solar and wind energy. Through this hybrid renewable energy system, the Malaysian oil field could theoretically be up to 60% lighter than its conventionally powered counterparts. With Shell looking to optimize the sustainability of its international operations, will you be keeping an eye on RDS.A stock?