Natural gas is a major source of energy and its demand continues to increase year after year. There are two main types of natural gas stocks – upstream and downstream. Upstream companies focus on extracting, processing, and transporting natural gas, while downstream companies focus on distributing it for consumption.
For example, an upstream company could include an exploration and production (E&P) firm that drills for oil and gas or a midstream company that operates pipelines. Downstream companies typically include utilities or marketing firms that provide services such as storage, transportation, and delivery of natural gas to customers.
Because of this, many investors are looking to capitalize on this growing sector by investing in natural gas stocks. But before you invest, it’s important to understand the various types of natural gas stocks available and how they can be used to diversify your portfolio. Now knowing this, let’s look at three top natural gas stocks to watch in the stock market now.
Natural Gas Stocks To Watch Today
- Devon Energy Corporation (NYSE: DVN)
- Cheniere Energy Inc. (NYSEAMERICAN: LNG)
- EQT Corporation (NYSE: EQT)
Devon Energy (DVN Stock)
Kicking off our list today, Devon Energy (DVN) is a leading oil and gas exploration and production company. The company has a diverse portfolio of assets across North America and is one of the largest independent producers of natural gas in the United States.
Earlier this month, Devon Energy announced its third-quarter dividend for common stockholders. In detail, the company’s Board of Directors has declared a fixed plus variable dividend of $1.35 per share. What’s more, this dividend payout reflects a 61% increase on a year-over-year basis. Additionally, the dividend is payable on December 30, 2022, to stockholders on record on December 12, 2022.
In 2022, Devon Energy stock has outperformed the broader markets as shares have increased 47.18% year-to-date so far. Meanwhile, on Tuesday shares of DVN stock are trading at $66.98 a share.
Cheniere Energy (LNG Stock)
Next, Cheniere Energy (LNG) is an energy company that primarily focuses on liquefied natural gas. Actually, Cheniere is the first and only company to have successfully completed the construction of an LNG export facility on the Gulf Coast of the United States.
In November, Cheniere reported a beat for its third-quarter 2022 financial results. Specifically, the company reported Q3 2022 earnings of $7.80 per share, to go along with revenue of $8.9 billion. These revenue figures represent a 176.6% increase versus the same period, the previous year.
Jack Fusco, Cheniere’s President, and CEO commented, “The Cheniere team continued to fire on all cylinders throughout the third quarter, as evidenced by our strong quarterly earnings, confirmation of our recently revised 2022 guidance, and the implementation of our ‘20/20 Vision’ long-term capital allocation plan.“
Similar to Devon Energy, shares of LNG stock are outperforming the broader markets year-to-date as LNG stock has increased 67.55% so far this year. While, on Tuesday, LNG stock is up another 1.01% on the day trading at $171.72 a share.
EQT Corporation (EQT Stock)
Lastly, EQT Corporation (EQT) is an American energy company with a focus on natural gas production, gathering, and processing. In fact, EQT Corp. is one of the largest independent natural gas producers in the United States.
At the end of last month, EQT reported its 3rd quarter 2022 financial and operating results. Diving in, the company announced an EPS of $1.04 on revenue of $2.1 billion for the quarter ending September 2022. In addition, EQT Corp also reported a 41.3% increase in revenue on a year-over-year basis.
Furthermore, President and CEO Toby Z. Rice said, “Third quarter was an active one at EQT as we announced the accretive, bolt-on acquisition of Tug Hill and XcL Midstream. Alongside the announcement, we augmented our capital returns framework, with material increases to both our debt reduction goals and stock buyback authorization.“
On Tuesday, EQT stock is trading up 1.16% on the day, currently trading at $42.00 per share. With that, shares of EQT stock have advanced 92.48% so far in 2022, which outperforms the broader markets year-to-date.