Natural gas is a type of fossil fuel that is commonly used for various purposes like heating, cooking, and generating electricity. It is considered to be a cleaner and more efficient energy source than coal and oil. The demand for natural gas is increasing due to several factors, including its greater use in the power generation industry, rising demand from developing countries, and government policies aimed at reducing greenhouse gas emissions.
By investing in natural gas stocks, investors can gain access to the natural gas industry and its potential for growth. These stocks encompass a broad range of companies involved in various aspects of the natural gas industry, such as exploration, production, transportation, and distribution. These businesses can benefit from the rising demand for natural gas and higher prices.
While investing in natural gas stocks can be risky, a well-diversified portfolio of natural gas stocks can offer potentially attractive long-term returns. Before making any investment decisions, investors should carefully consider the risks and opportunities associated with investing in natural gas stocks. As such, let’s take a look at two natural gas stocks to keep an eye on in the stock market this week.
Natural Gas Stocks To Watch This Week
- Cheniere Energy Inc. (NYSEAMERICAN: LNG)
- Devon Energy Corporation (NYSE: DVN)
Cheniere Energy (LNG Stock)
To begin, Cheniere Energy Inc. (LNG) is a natural gas company that specializes in the liquefaction, transport, and export of natural gas. The company operates primarily in the United States and has become a leading exporter of liquefied natural gas (LNG) to global markets.
Last week, Cheniere Energy reported better-than-expected 4th quarter 2022 financial results. Specifically, the company announced Q4 2022 earnings of $15.78 per share, with revenue of $9.1 billion. This is in comparison to Wall Street’s consensus estimates for the quarter which were earnings of $4.89 per share, and revenue estimates of $8.7 billion. What’s more, Cheniere Energy notched in a 38.6% increase in revenue versus the same period, a year prior.
Year-to-date, LNG stock has increased by 12.27% so far. Meanwhile, as of this past Friday’s closing bell, shares of LNG stock closed the day at $157.77 a share.
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Devon Energy (DVN Stock)
Next, Devon Energy Corporation (DVN) is an independent natural gas and oil exploration and production company in the United States. The company has a diversified asset base and operates in several key shale basins, including the Delaware Basin, STACK, and Powder River Basin, among others.
In February, Devon Energy reported weaker-than-expected 4th quarter 2022 financial results. In detail, DVN showed 4th quarter 2022 earnings per share of $1.66, along with revenue of $4.3 billion. For context, the analysts’ consensus estimates for Q4 2022 were earnings of $1.75 per share, on revenue of $4.6 billion.
Since the start of 2023, shares of DVN stock have slid by 5.37%. Additionally, this past Friday, Devon Energy stock closed the trading day at $55.00 per share.
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