Are These The Best Liquefied Natural Gas Stocks To Invest In Today?
Alongside cannabis stocks and meme stocks, liquefied natural gas (LNG) stocks are gaining in the stock market today. By and large, this seems to be the case thanks to the latest update on President Joe Biden’s Europe trip. In brief, the U.S. is now working with the E.U. to address its energy issue. The new collaborative effort will serve to strengthen energy supplies in the region. At the same time, this would also help to reduce the region’s dependence on Russian oil. The current treaty will see the U.S. supply 15 billion cubic meters of LNG to Europe this year.
Notably, all of this would see plenty of attention go to the top liquefied natural gas stocks around now. In fact, the White House also notes that the volume of LNG being exported will likely increase further moving forward. As the world looks towards alternative suppliers for their oil needs, LNG firms are thriving. So much so that they are actively expanding their offerings Take ExxonMobil (NYSE: XOM) and BP (NYSE: BP) for instance. On one hand, ExxonMobil is redirecting its excess LNG towards powering cryptocurrency mining rigs. On the other hand, BP is investing about $1.32 billion towards electric vehicle (EV) charging over the next decade. With all this activity in the space now, these LNG stocks could be in focus in the stock market right now.
Liquefied Natural Gas Stocks To Watch Right Now
- Chesapeake Energy Corporation (NASDAQ: CHK)
- Cheniere Energy Inc. (NYSEAMERICAN: LNG)
- Occidental Petroleum Corporation (NYSE: OXY)
- Shell plc (NYSE: SHEL)
Chesapeake Energy Corporation
Today, we start with Chesapeake Energy, an LNG stock that engages in hydrocarbon exploration. In fact, the company is focused on discovering and responsibly developing its large and geographically diverse resource base of unconventional oil and natural gas assets onshore in the U.S. The company also has a goal to achieve net-zero direct GHG emissions by 2035, Chesapeake is committed to safely answering the call for affordable, reliable, lower-carbon energy. CHK stock has more than doubled in valuation in the past year alone.
Earlier this month, the company announced that it has completed its previously announced acquisition of Chief E&D Holdings and associated non-operated interests held by affiliates of Tug Hill Inc.
Nick Dell’Osso, Chesapeake’s President and Chief Executive Officer, commented, “The Chief transaction deepens our premium inventory, allowing us to allocate additional capital toward our world-class Marcellus Shale position and accelerate returns for our shareholders. With the integration of these assets into our existing portfolio, we look forward to generating greater free cash flow, growing our dividend programs, and improving our GHG emissions metrics as we continue to responsibly deliver reliable, affordable, lower-carbon energy in 2022 and beyond.” Given this piece of news, is CHK stock worth investing in?
Cheniere Energy Inc.
Next up, we have Cheniere Energy, one of the first companies in the U.S. to export liquefied natural gas. It reliably provides clean, secure, and affordable energy to the growing global demands for natural gas.
The company is a full-service LNG provider, with capabilities that include gas procurement and transportation, liquefaction, vessel chartering, and LND delivery. It also has one of the largest liquefaction platforms in the world, consisting of the Sabine Pass and Corpus Christi liquefaction facilities on the U.S. LNG has also almost doubled in valuation in the past year.
Last month, the company and EOG Resources (NYSE: EOG) announced that they have amended their long-term Integrated Production Marketing (IPM) gas supply agreement signed in 2019. They will extend the term and also triple the volume of LNG associated with the natural gas supply under this long-term IPM transaction. The mutually beneficial long-term agreement will further leverage Cheniere’s infrastructure platform, capabilities, and operations in Corpus Christi. All things considered, should investors be on the lookout for LNG stock?
Occidental Petroleum Corporation
Occidental Petroleum Corporation is an international energy company that has assets primarily in the U.S., Middle East, and North Africa. Impressively, the company is one of the largest oil producers in the U.s. and a leading producer in the Permian and DJ basins, and offshore Gulf of Mexico.
Its midstream and marketing segment provides flow assurance and maximizes the value of its oil and gas products. The company also has its Oxy Low Carbon Ventures subsidiary that is advancing leading-edge technologies and business solutions that economically grow its business.
On March 22, 2022, the company announced an agreement with an affiliate of SK Trading International for the first net-zero oil created by combining crude oil together with environmental attributes generated from the sequestration of atmospheric carbon dioxide captured via 1PointFive’s planned large-scale Direct Air Capture (DAC) facility and sequestered in Occidental’s enhanced oil recovery (EOR) reservoirs in the U.S. Permian Basin. Occidental’s marketing affiliate may provide SK Trading with an opportunity to purchase up to 200,000 barrels of net-zero oil per year for five years. With that being said, would OXY stock make your list of top liquefied natural gas stocks to buy right now?
Last but not least, we have Shell. In short, it is a multinational British oil and gas company. As one of the biggest players in the global energy industry today, SHEL stock would be on investors’ radars now. For a sense of scale, the company operates in over 80 countries. Also, it sold 64.2 million tons of LNG throughout 2021. Moreover, Shell now has a market capitalization of over $207 billion. With all that is going on in the energy industry now, key names such as Shell will likely continue to remain busy on the operational front.
Evidently, Shell is now working with a Chinese EV firm, BYD Auto. As of earlier this week, the duo are now part of a strategic cooperation agreement. Through this, they will partner up on two joint ventures (JVs) in China and Europe. According to BYD, they will be establishing a mobility service provider service in Europe.
This will see Shell provide membership services for BYD drivers on its EV charging network in the region. Whereas in China, Shell will be helping BYD develop an extensive network of EV charging stations. The likes of which it estimates will initially consist of over 10,000 terminals in Shenzhen, with plans to expand further. With all this in mind, would you consider investing in SHEL stock?