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Investors looking for opportunities to grow their portfolios would do well to consider investing in the best natural gas stocks. This is due, in large part, to legislation being discussed in the committee and subcommittee levels in Congress this week that would give approval to pending applications on file to export natural gas. Increasing U.S. natural gas exports would also increase production and generate heightened earnings for natural gas producers.
There are a number of natural gas production companies from which to choose to add this industry sector to one's portfolio. We will examine a few companies that we feel represent some of the best natural gas stocks right now.
Four of the Best Natural Gas Stocks Right Now
Cheniere Energy Inc. (NYSEMKT: LNG)
Based in Houston, Texas, Cheniere Energy Inc. operates through subsidiaries in the Gulf of Mexico area, exploring for oil and natural gas. It develops liquefied natural gas (LNG) terminals, including the Sabine Pass LNG terminal located in Louisiana.
Despite posting losses for 2013, Cheniere is poised for solid growth in 2014, especially given the developments in the Russian-Ukraine conflict. One main reason for Cheniere's losses in 2013 was due to early retirement of debt, which is a positive move given the fact that the company will likely need the additional capital to pursue growth.
LNG shares have shown some volatility over the past six months, reaching a 52-week high at the end of February. Share values have consistently grown, with a few exceptions, from $32.93 per share at the end of September 2013, to $54.21 per share at the close of trading on March 21, 2014.
Dominion Resources Inc. (NYSE: D)
Dominion Resources Inc. is a utility holding company that is involved in diversified energy sources, such as electricity and natural gas. Its primary operations are located along the coastal areas of North Carolina and also Virginia.
Market analysts overall agree that Dominion is rated a strong "Buy," both from the standpoint of solid performance over the past 52 weeks, and also from the fact that it is gaining momentum toward its one-year price target – it could very well be one of the best natural gas stocks from which to choose in the near future.
Shares have performed with consistency over the past month, maintaining a per-share price of $70 or more. This is a positive move from Dec. 11, 2013, when shares were trading at $63.50.
Cabot Oil & Gas Corp. (NYSE: COG)
Despite steep fluctuations over the past year in share value, Cabot Oil & Gas is a bullish giant. With locations strategically located in the Appalachian Basin, eastern Texas, Louisiana, and the Gulf Coast, Cabot is definitely poised for growth.
Even though stock prices have dropped in recent weeks, Cabot's earnings per share consistently remain in positive territory, as does the company's dividend growth. Most analysts agree that, as demand for LNG increases, Cabot is in a good position to have capital available to pursue new resources for natural gas.
Consol Energy Inc. (NYSE: CNX)
Once an energy company with a primary focus on coal and only a side-interest in natural gas, Consol Energy has shifted its paradigm. It is now an energy producer with an emphasis on natural gas, and with a remaining side-interest in coal production. This reorganization has given this company an excellent position given the increased demand for natural gas on the horizon.
Shares of Consol Energy Inc. are currently trading at approximately $32.65 per share, which represents a fairly significant decline from a recent high of $40.07 on February 19th. Given the likely surge in demand that would occur if the expo