In this article, we will discuss the best LNG stocks to buy in 2025.
Liquefied natural gas (LNG) is natural gas that has been reduced to a liquid state through a process of cooling, making it easier, safer, and more efficient to store and ship around the world. The global LNG trade has skyrocketed over the last few years and reached 404 million metric tons in 2023, with demand to rise by another 50% by 2040.
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The United States of America is the largest LNG exporter in the world, with 88.3 million tons shipped in 2024, up 4.5% from the previous year. Europe remains the top destination for American LNG, which has replaced nearly half of the Russian gas supply to the continent after the outbreak of war in Ukraine. Although last year was marked by slow growth, these numbers are expected to receive a significant 15% boost in 2025 due to several new projects coming online, notably the Plaquemines LNG and Corpus Christi LNG Stage 3 projects. These expansions could pay big dividends for the country’s LNG-focused companies, given the demand grows as predicted and prices stay attractive. On their current trajectory, the ballooning LNG exports would support nearly half a million domestic jobs annually and contribute $1.3 trillion to US GDP through 2040 while having a negligible impact on domestic gas prices, according to figures from S&P Global.
Another point to note is that the United States is now capable of exporting LNG at such historic levels without impacting supplies to its own people. The US natural gas output stands near an all-time high and nearly 90% of it remains available for domestic consumption. At the same time, natural gas prices for American households continue to be among the lowest in the world.
The American LNG sector is expected to receive a significant boost after President Donald Trump issued an order last month for the country to resume processing export permit applications for new LNG projects, reversing a pause on permits for new projects that former President Joe Biden put in place early last year to study the environmental and economic effects of the booming export industry. Several key LNG importers from Asia have hailed the move as a necessary step for maintaining their energy security and decarbonizing their energy systems in the long run. Even just a few days ago, after a round of talks with Japanese Prime Minister Shigeru Ishiba, President Trump announced that Japan will soon begin importing a record amount of new shipments of American LNG.
Paul Everingham, CEO of Asia Natural Gas and Energy Association (ANGEA), stated the following after the resumption of LNG export approvals in the United States:
“A recent study by Wood Mackenzie, commissioned by ANGEA, found that Asia’s LNG demand would nearly double between now and 2050, driven largely by significant growth in demand from South and Southeast Asia. The study also forecast that the United States would make up a third of global LNG supply by 2035. However, both LNG demand growth from emerging Asia and the ability of the US to meet it, were contingent on the ‘pause’ being lifted and sufficient US supply being available in coming decades to moderate global prices and ensure that LNG was affordable for nations in South and Southeast Asia. Today’s issuing by President Trump of an order to resume processing of LNG export approvals will enable key projects to proceed and give decision and policy makers in Asia the certainty they require to make long-term decisions about energy. Emerging economies in Asia seek to switch out high-emitting coal use for more gas-fired power as they pursue sensible and well-planned growth in renewable energy sources. The resumption of LNG export approvals in the US will help make this a reality.”
That said, a recent headwind for the American LNG industry has emerged in the form of a burgeoning trade war between the US and China, with American gas exporters caught in the crossfire. China, the largest LNG importer in the world as well as the fastest-growing LNG market globally, was seen as a key growth market for American LNG until President Trump slapped an additional 10% tariff on all Chinese imports earlier this month. This move was followed by Beijing announcing its own retaliatory tariffs on imports from the US, including a 15% tariff on American LNG. Though the two countries are not highly dependent on each other in the LNG arena, with China accounting for only 5% of US LNG exports last year, these numbers are not expected to surge anytime soon if the current political landscape remains the same.
A possible solution could be directing even more liquified natural gas to Europe, especially after buyers there look to replenish depleted inventories following a relatively cold winter, but that is also a short-term fix. The continent’s appetite for gas is expected to decline over the long term, given its strong commitments to reduce carbon emissions by shifting to renewables.
With that said, here are the Best LNG Stocks to Buy in 2025.
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Methodology:
To collect data for this article, we scanned Insider Monkey’s database of 900 hedge funds and picked the top 10 companies operating in the liquified natural gas sector with the highest number of hedge fund investors in Q3 of 2024. Following are the Best LNG Stocks to Buy According to Hedge Funds.
At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
10. Energy Transfer LP (NYSE:ET)
Number of Hedge Fund Holders: 29
Energy Transfer LP (NYSE:ET) is one of the largest and most diversified midstream energy companies in North America, with a strategic footprint in all of the major US production basins. The company announced in December 2024 that its subsidiary, Energy Transfer LNG Export, has entered into a 20-year LNG sale and purchase agreement with Chevron related to its Lake Charles LNG project. Under the agreement, the company will supply 2 million tons per year of LNG to Chevron.
Energy Transfer LP (NYSE:ET) had a strong Q3 2024 as natural gas liquids and crude transportation volumes hit a company record. The company’s exported crude volumes surged by 49% YoY, while crude transportation volumes were also up 25%. As a result, ET reported a net income of $1.18 billion in Q3, against $584 million in the third quarter of 2023. The company announced a quarterly dividend of $0.325 per share in January, up 0.8% from the prior dividend of $0.323, marking the 13th consecutive quarterly dividend increase.
In recent news, it was announced that Energy Transfer LP (NYSE:ET) has entered into a long-term natural gas supply agreement with CloudBurst Data Centers for its development in Central Texas. Under the agreement, the energy company will provide up to 450,000 million British thermal units per day of firm natural gas directly to the data center, bypassing existing transmission grids. The agreement marks ET’s first commercial arrangement to supply natural gas directly to a data center.
Patient Capital Management stated the following regarding Energy Transfer LP (NYSE:ET) in its Q3 2024 investor letter:
“Energy names disappointed in the quarter following commodity prices lower throughout the period. We took the opportunity to add to our highest conviction ideas. We look to names that have idiosyncratic opportunities and are attractive in a variety of different commodity price environments. Many see risk to energy prices over the next year as supply is expected to outstrip demand by 1.3mb/d even before assuming any incremental OPEC supply comes onto the market. With commodities, consensus is rarely right. We assess companies on through cycle returns and normalized prices. From this perspective, we see a handful of attractive opportunities, including Energy Transfer LP (NYSE:ET), Seadrill, and Kosmos.
Our ownership of Energy Transfer began in 2019 with the belief that the limited supply of new pipelines would provide attractive pricing opportunities over the long-term. At the same time, the company was paying us an attractive dividend (10% yield over the period). So far this investment thesis has largely played out, but we continue to see an attractive long-term setup for the name given our belief that natural gas will be a key ingredient to bridge us to a net carbon neutral world.”
9. BP p.l.c. (NYSE:BP)
Number of Hedge Fund Holders: 36
BP p.l.c. (NYSE:BP) is a British multinational company recognized worldwide for quality gasoline, transport fuels, chemicals, and alternative sources of energy such as wind and biofuels. The company is also a recognized global LNG player with established and significant LNG marketing and trading capabilities across the world.
BP p.l.c. (NYSE:BP)’s profits slumped by 30% to $2.3 billion in Q3 2024 amid weaker refining margins and oil trading results. Moreover, a 9% annual rise in the company’s debt levels was also concerning for investors. However, the energy giant remained committed to its shareholders and maintained its quarterly dividend at $0.08 per share after raising it in the previous quarter. BP also decided to keep the rate of its share buyback program at $1.75 billion for the fourth quarter.
BP p.l.c. (NYSE:BP) continues to make progress in the LNG sector and it was announced last month that the company has safely begun flowing gas from Greater Tortue Ahmeyim (GTA) Phase 1, one of the deepest, most complex gas developments in Africa. The 2.3 million tons per annum (mtpa) LNG project is expected to dispatch its first cargo by March.
Shares of BP p.l.c. (NYSE:BP) surged by over 7.4% on February 10, 2025, after an activist investor, Elliott Investment Management, reportedly acquired a meaningful stake in the firm. Moreover, it is speculated that the investor will try to get the company to implement changes in an effort to boost its stock, including recruiting a new chairperson and pressuring the oil giant to sell its environmentally friendly assets.
8. Antero Resources Corporation (NYSE:AR)
Number of Hedge Fund Holders: 39
Next on our list of the Best LNG Stocks is Antero Resources Corporation (NYSE:AR), an independent natural gas and liquids company operating in the Appalachian Basin. The company is the most integrated natural gas and NGL business in the US and one of the largest suppliers to the country’s LNG market.
Antero Resources Corporation (NYSE:AR) reported in its Q3 2024 earnings call that the company has continued to improve its capital efficiency. Over the last two years, the company has reduced the average number of days to drill a well by 20% to just 11 days, versus 14 days previously. It also decreased its drilling and completion capital budget by 28% YoY to $650 million for 2024, while holding production flat, giving it a significant competitive edge in the capital-intensive fossil fuel industry. Moreover, Antero’s export volumes for the first nine months of 2024 averaged over 1.7 million barrels a day, setting up for another record export year. Since 2021, the company’s exports have surged by 46%, driven by resilient international demand, particularly from Asia.
Antero Resources Corporation (NYSE:AR)’s transportation portfolio delivers 75% of its natural gas to the LNG corridor and provides it with direct exposure to the growing LNG export trend.
Shares of Antero Resources Corporation (NYSE:AR) have surged by over 86% over the last year, putting it among the 12 Hot Oil Stocks to Buy According to Hedge Funds.
7. Kinder Morgan, Inc. (NYSE:KMI)
Number of Hedge Fund Holders: 42
Kinder Morgan, Inc. (NYSE:KMI) is one of the largest energy infrastructure companies in North America. The company owns an interest in or operates approximately 83,000 miles of pipelines, 141 terminals, and 700 billion cubic feet of working natural gas storage capacity. As the only LNG company in the Midwest, Kinder Morgan is also an active player in the country’s LNG export business.
Kinder Morgan, Inc. (NYSE:KMI) reported a revenue of $3.99 billion for Q4 of 2024, down from $4.04 billion a year before, as it struggled with lower crude and condensate volumes transported through its pipelines. However, the company ended 2024 with a strong balance sheet, generating $5.6 billion in operating cash flow and having decreased its debt by $112 million during the year. KMI also announced a regular cash dividend of $0.2875 per share for Q4, marking an increase of 2% YoY.
Kinder Morgan, Inc. (NYSE:KMI) is well-positioned to capitalize on the growth opportunities in the LNG sector and serves approximately 45% of America’s export LNG demand. The company has recently announced that it is proceeding with its approximately $1.7 billion Trident Intrastate Pipeline project, a 216-mile pipeline that will provide about 1.5 billion cubic feet per day of capacity to the LNG and industrial corridor near Port Arthur, Texas. The project is expected to be in service in the first quarter of 2027.
6. Baker Hughes Company (NASDAQ:BKR)
Number of Hedge Fund Holders: 45
Baker Hughes Company (NASDAQ:BKR) is an energy technology company that provides solutions for energy and industrial customers worldwide. The company also boasts a 40-year track record in the LNG industry and just recently announced that it has signed an agreement with Venture Global to support its LNG projects in the United States with technology and equipment.
Baker Hughes Company (NASDAQ:BKR) had a strong Q4 2024 with a revenue of $7.36 billion, up 7.74% YoY and beating analysts’ estimates by over $293 million. The company also generated free cash flow of $894 million during the quarter and ended Q4 with liquidity of $6.4 billion. Moreover, the company remains committed to returning 60% to 80% of free cash flow to shareholders and distributed $1.3 billion in dividends and share repurchases in 2024. As a result of its strong performance, shares of BKR have surged by over 60% since a year ago.
Baker Hughes Company (NASDAQ:BKR) ended 2024 with total orders of $13 billion, marking the second-highest annual order volume in its history. The company also managed to secure orders for multiple LNG projects, bringing total LNG equipment bookings to almost $2.1 billion for the year.
Shares of Baker Hughes Company (NASDAQ:BKR) were held by 45 hedge funds at the end of Q3 2024 in the Insider Monkey database, up from 41 in the previous quarter.
5. Shell plc (NYSE:SHEL)
Number of Hedge Fund Holders: 48
Ranked at number 5 in our list of the Best LNG Stocks to Invest in is Shell plc (NYSE:SHEL), a global group of energy and petrochemical companies, employing 103,000 people and with operations in more than 70 countries. The oil and gas giant has been a pioneer in LNG for 60 years and supplied 67 million tons of LNG in 2023, accounting for 16% of all LNG supplied globally. Moreover, Shell is also one of the largest LNG shipping operators in the world, accounting for around 11% of the global LNG shipping fleet.
Shell plc (NYSE:SHEL) reported a YoY drop of 16% in its profits by Q4 2024, primarily due to declining oil and gas prices and falling oil demand. However, the company’s share price still surged after it raised its dividend by 4% and launched another share buyback program of $3.5 billion, making this the 13th consecutive quarter of at least $3 billion of share repurchases. The oil major also maintains a strong balance sheet and generated a free cash flow of $40 billion in 2024, higher than the previous year despite the lower price environment. Shell is also actively working to reduce costs and achieved structural cost reductions of $3.1 billion by the end of 2024, one year ahead of its end-2025 target date, and above the range of $2 to $3 billion that it set in 2023.
Shell plc (NYSE:SHEL) has several integrated gas projects in the pipeline to maintain and increase its LNG output in the years to come. In addition to projects in Qatar, it’s leading the development of LNG Canada, which will be able to produce 14 million metric tons of LNG each year when it becomes operational in 2025. Moreover, Shell has also recently signed a multi-billion dollar agreement with Egypt to secure dozens of cargoes of LNG to cover demand for 2025.
4. Cheniere Energy, Inc. (NYSE:LNG)
Number of Hedge Fund Holders: 62
Headquartered in Texas, Cheniere Energy, Inc. (NYSE:LNG) is the largest producer of LNG in the United States and the second-largest LNG operator in the world. The company boasts one of the largest liquefaction platforms in the world with a total production capacity of approximately 45 million tons per annum (mtpa) of LNG in operation and an additional 10+ mtpa of expected production capacity under construction.
The declining international LNG and gas prices have been weighing Cheniere Energy, Inc. (NYSE:LNG), causing its revenue to drop by over 9.5% YoY to $3.76 billion in Q3 2024. Net income also nearly halved to $893 million but the company still managed to repurchase another nearly $300 million of stock during the quarter, bringing its total to approximately $2 billion for the first nine months of 2024. Cheniere also declared a quarterly dividend of $0.5 per share last month and intends to follow through with its guidance of growing its dividend by approximately 10% annually through the end of this decade.
Cheniere Energy, Inc. (NYSE:LNG)’s export business seems to be going strong and the company exported 158 LNG cargoes in Q4 2024, up about 4% from the year-ago period. These numbers are expected to receive a boost as the company’s Corpus Christi Stage 3 project, an export facility in South Texas, is expected to start soon and will produce around 10 million tons per annum of liquefied natural gas.
3. Chevron Corporation (NYSE:CVX)
Number of Hedge Fund Holders: 63
A leader in energy for over 140 years, Chevron Corporation (NYSE:CVX) manufactures and sells a range of high-quality refined products, including gasoline, diesel, marine and aviation fuels, premium base oil, finished lubricants, and fuel oil additives. Such a high level of diversification helps soften the impacts of the energy sector’s ups and downs on the company’s results.
Chevron Corporation (NYSE:CVX) had another strong year in 2024 as it reported record production both globally and in the United States and achieved several major milestones including delivering key project start-ups in the ‘Gulf of America’. The company is also making progress in its new energy business and sold over 20 million barrels of bio-based diesel and advanced foundational projects in CCUS and hydrogen during the year. Moreover, Chevron returned a record $27 billion in cash to shareholders through dividends and buybacks last year and announced a 5% increase in its quarterly dividend to $1.71 per share, marking the 38th consecutive year with an annual increase to dividend payment per share.
Chevron Corporation (NYSE:CVX) has various LNG production facilities and its fleet of specialized ships link worldwide LNG production and regasification facilities to create a safe, reliable, and efficient network to transport liquefied natural gas. However, the company doesn’t want to invest directly in US LNG export projects as it can monetize its gas production without having to convert it to LNG because of the country’s large midstream market. That said, Chevron still plans on benefiting from the American LNG output through sale and purchase agreements with LNG developers, hoping to export the gas to Europe. Just recently, it was announced that the oil and gas giant has signed a long-term sale and purchase agreement with Energy Transfer LNG to acquire 2 mtpa of LNG on a free-on-board basis for 20 years.
2. ConocoPhillips (NYSE:COP)
Number of Hedge Fund Holders: 66
As one of the world’s largest independent E&P companies, ConocoPhillips (NYSE:COP) manages a diverse portfolio of gas flow operations. The company also has a 60-year history of leadership in LNG and LNG technology.
ConocoPhillips (NYSE:COP) managed to substantially increase its production in Q4 2024, rising 14.8% YoY to 2,183 thousand barrels of oil equivalent per day. However, the declining international prices took their toll and COP’s average realized price per barrel of oil equivalent fell to $52.37, down from the previous year. As a result, the company reported a revenue of $14.7 billion, down 3.72% YoY but still beating analysts’ estimates by over $514 million. COP still remains committed to its shareholders and distributed $9.1 billion in 2024 through dividends and share buybacks. The company has significantly enhanced its ability to produce cash by closing its $22.5 billion acquisition of Marathon in late November and aims to return $10 billion in 2025.
ConocoPhillips (NYSE:COP) has also progressed its LNG strategy through additional regasification and sales agreements in Europe and Asia. The company owns interests in LNG production facilities in Qatar and Australia and also signed a deal last year to book long-term capacity at the Fluxys-operated Zeebrugge LNG import terminal in Belgium.
Shares of ConocoPhillips (NYSE:COP) were held by 66 hedge funds at the end of Q3 2024, with Fisher Asset Management holding the largest stake valued at over $1.36 billion.
1. Exxon Mobil Corporation (NYSE:XOM)
Number of Hedge Fund Holders: 86
Topping our list of the Best LNG Stocks to Buy is Exxon Mobil Corporation (NYSE:XOM), one of the largest integrated fuels, lubricants, and chemical companies in the world. The company controls a treasure trove of low-cost oil and gas and also boasts a leading LNG portfolio, producing 23 mtpa of LNG globally through its affiliates and joint ventures.
Exxon Mobil Corporation (NYSE:XOM) delivered earnings of $34 billion and operating cash flow of $55 billion in 2024, its third-highest result in a decade despite softer market conditions. Moreover, the oil major insists that the best days are yet to come and is aiming to deliver an incremental $20 billion in earnings and $30 billion in cash flow by 2030. Exxon’s strong financial position has allowed it to distribute more than $125 billion in dividends and buybacks in the last five years, $30 billion more than the closest competitor. The company has increased its annual dividend for 42 consecutive years and announced a quarterly dividend of $0.99 per share for Q1 of 2025.
Exxon Mobil Corporation (NYSE:XOM) has a goal of roughly doubling the size of its LNG business to around 40 mtpa by 2030, with projects in the United States, Papua New Guinea, Mozambique, and Qatar. The industry giant has four world-class LNG projects under development, including the $10 billion Golden Pass LNG project in the US which will have the capacity to export about 18 million tons of LNG per year starting the end of 2025.
Overall, Exxon Mobil Corporation (NYSE:XOM) ranks first on our list of the best LNG stocks to buy in 2025. While we acknowledge the potential for XOM to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than XOM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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