In this article, we will discuss the 10 Best LNG and LNG Shipping Stocks to Buy According to Analysts.
The global market for Liquefied Natural Gas (LNG), with the support of secure energy and industrial demand, is looking at continued expansion. The industry is forecasted to grow from $143.35 billion in 2024 to $155.85 billion in 2025, according to The Business Research Company. This reflects a Compound Annual Growth Rate (CAGR) of 8.7%. Looking further ahead, it is expected that the LNG market will reach $205.95 billion by 2029, exhibiting a CAGR of 7.2%, which is predominantly attributed to the global demand for cleaner energy. The demand for LNG is majorly fulfilled by the U.S., exporting around 88.3 million metric tons (MT), which is up by 4.5% from 2023, according to LSEG.
In contrast, the global market also has a major impact from Europe’s LNG demand. The region’s demand accounted for 55% of total LNG exports by the U.S. in 2024, according to LSEG. LNG shipments of 5.84 MT were sent to Europe by the U.S. in December 2024, which is up from 5.09 MT in the previous month.
This increased demand is driven by strong winters as well as supply-related issues from Russia. Previously, Europe imported LNG through Ukraine in 2024, while it is currently seeing increasing geopolitical issues. On the other hand, Asia’s LNG demand has also seen growth, making up 34% of the total LNG exports made by the U.S. in 2024. Accordingly, shipments to Asia rose to 2.01 MT in December from 1.64 MT in November (up by 24%).
However, the industry is currently facing challenges in the form of the U.S.-China trade war, under which China imposed a 15% tariff on the U.S. LNG, as U.S. President Donald Trump put a 10% charge on Chinese imports. While long-term commitments are significant, in 2024, China’s imports made up for only 5.5% (4.3 MT) of the total exports by the U.S., as per Kpler. It has been reported by Reuters that under 20-year agreements, Chinese buyers are to import 20 million tons per annum (MTPA) of LNG from U.S. terminals. However, ongoing issues may curb further contracts.
Thus, for short-term ease, the U.S. may rely on Europe’s demand, however, IEA predicts that the European gas demand will decline from 507 billion cubic meters (bcm) in 2023 to somewhere between 281 and 407 bcm by 2035, owing to its transition to renewable energy sources. On the other hand, China’s LNG demand is expected to grow and reach between 397 and 522 bcm by 2035.
Moreover, advancements in technology in liquefaction and regasification have helped in improving energy efficiency and in reducing methane emissions across the supply chain. Furthermore, offshore gas extraction has been enabled by floating LNG (FLNG) with minimal onshore infrastructure, which adds to flexibility in production. The global LNG liquefaction capacity by 2028 is expected to increase from 473 million tons per annum (MTPA) in 2023 to 968 MTPA by 2028 with the help of new projects as per BusinessWire. The expansion will be led by North America, making up for 54% of the total capacity increase.
Looking on to the other side, Australia also makes up for a key LNG player with over $126 billion invested in new and upcoming projects, as reported by Deloitte. These investments look to increase production capacity and help Australia secure long-term contracts amidst changing global demand.
Despite these developments, natural gas futures prices have increased by around 98.02% in the past six months. This is an increase from $1.956 on August 26, 2024 to $4.23, as of writing this article. This reflects on the high volatility of the market as well as evolving trade flows.
With this, let’s now look at the 10 Best LNG and LNG Shipping Stocks to Buy According to Analysts, focusing on companies that are driving growth in this evolving sector.
Methodology
To curate our list of the 10 Best LNG and LNG Shipping Stocks to Buy According to Analysts, we picked the top LNG companies having an exposure to LNG production and distribution. Furthermore, we made sure that we picked companies with strong market capitalization. Additionally, we looked into the number of hedge funds having a stake in the respective stocks, and made sure the hedge fund sentiment was positively strong for the respective stocks. Finally, we ranked the stocks based on the upside potential predicted by a healthy number of analysts, as of writing this article.
Why are we interested in 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10. BP p.l.c. (NYSE:BP)
Average Upside Potential: 9.08%
Number of Hedge Fund Holders: 44
BP p.l.c. (NYSE:BP) is a multinational energy company with major operations in oil and gas production, refining, and low-carbon energy related solutions. The company generates revenues through Gas & Low Carbon Energy, Customers & Products, and Oil Production & Operations, with a focus on improving efficiency and disciplined capital allocation.
BP p.l.c. (NYSE:BP) reported an underlying replacement cost (RC) profit of $1.2 billion in Q4 ended December 31, 2024, which is a decrease from $2.3 billion in Q3. This decline is a reflection of lower refining margins, higher turnaround costs, and lower fuels margin due to seasonality.
However, the company reported strong cash flow of $7.4 billion, with support from $1.3 billion of working capital release. Its net debt also reduced and stood at $23 billion, supported by $2.8 billion of divestment proceeds and strategic debt management. As a result, BP p.l.c. (NYSE:BP) announced an $0.08 dividend per share, and completed a share buyback at $1.75 billion. Looking ahead, the company plans to repurchase an additional $1.75 billion before Q1 2025 results are out.
Regardless of varied performance by BP, the company approved 10 new Final Investment Decisions (FIDs) and expanded into the markets of Iraq and India, emanating strategic progress. The company also reported plant reliability above 95%, which supports its upstream operations.
On January 2, 2025, BP p.l.c. (NYSE:BP) announced the start of gas supply from wells at the GTA Phase 1 Liquefied Natural Gas (LNG) project to its floating production storage and offloading (FPSO) vessel for the next stage of commissioning. The project is key to BP’s LNG expansion efforts, as it is expected to produce around 2.3 million tons of LNG per annum.
Thus, BP’s strategy through this new investment supports its growth target of 25 million tons per annum (MTPA) by 2025. Supplemented by strong cash generation and a stable balance sheet, BP looks to strengthen its financial position as it navigates through industry challenges to position itself as one of the best LNG stocks to buy right now.
9. Kinder Morgan, Inc. (NYSE:KMI)
Average Upside Potential: 10.36%
Number of Hedge Fund Holders: 55
Kinder Morgan, Inc. (NYSE:KMI) is one of the leading energy infrastructure companies located in North America. The company specializes in the transportation and storage of natural gas, refined petroleum products, crude oil and CO₂. Kinder Morgan owns key assets around major LNG hubs, and facilitates the supply of natural gas from its production regions to liquefaction facilities, proving to be a major player in supplementing the demand for U.S. LNG exports.
The company has shown strong financials for Q4 2024, with its net income increasing to $667 million, up from $594 million when compared to Q4 2023 (12.3%). Kinder Morgan, Inc. (NYSE: KMI) has also shown a distributable cash flow (DCF) of $1.26 billion, which means that they have stable cash flow to support shareholder returns and capital investments.
The company has been expanding its infrastructure portfolio, with advancements in major projects including the $1.7 billion Trident Intrastate Pipeline and the $1.6 billion Mississippi Crossing Project, to compensate for increasing LNG demand. The company secured long-term contracts for its $3 billion South System Expansion 4 (SSE4) project, which strengthens its position in the energy market. Kinder Morgan, Inc. (NYSE:KMI)’s backlog of projects increased by 60% to $8.1 billion, which is driven by natural gas infrastructure.
With new investments, including the 216-mile pipeline build, the company looks to produce 1.5 billion cubic feet per day (Bcf/d) of capacity from Katy, Texas, for the LNG and industrial corridor near Port Arthur, Texas. The investments are supposed to generate an adjusted EBITDA for 2025, approximately 8 times on a full-year basis, excluding $20 million in adjusted EBITDA, adding to the confidence of its shareholders.
Thus, Kinder Morgan, Inc. (NYSE:KMI)’s strong financial health and strong growth prospects have led to a 59.55% stock return over the past year, as of writing this article, which outperformed the broader market’s return of 20.70% for Q4 2024, allowing it to make it to our list of the 10 Best LNG and LNG Shipping Stocks to Buy According to Analysts.
8. Cheniere Energy, Inc. (NYSE:LNG)
Average Upside Potential: 10.86%
Number of Hedge Fund Holders: 70
Cheniere Energy, Inc. (NYSE: LNG) is one of the top LNG producing and exporting companies in the U.S. The company looks to provide affordable and clean solutions to cater to the increasing global demand for LNG. Cheniere Energy is in control of one of the world’s largest liquefaction facilities, which include the Sabine Pass and Corpus Christi. These plants have an accumulated production capacity of around 45 million tons per annum (MTPA) and an additional 10+ MTPA is under construction.
For the year ended December 31, 2024, Cheniere Energy, Inc. (NYSE:LNG) reported revenue of $15.7 billion, net income of $3.3 billion, and adjusted EBITDA of $6.2 billion. However, majorly due to changes in the fair value of derivative instruments, the company’s net income took a hit of $6.6 billion, which made for a $6.7 billion variance. Overall, lower gas prices reduced the total margins per MMBtu of LNG delivered.
Nevertheless, Cheniere Energy, Inc. (NYSE:LNG) has looked to expand its LNG infrastructure, producing its first LNG from Train 1 of the Corpus Christi Stage 3 project in December 2024. This project is looking to be completed by the end of Q1 2025. The first cargo has already been shipped as of February 2025, which marks an important leap toward increasing the strength of production for the company.
Looking forward, the company introduced a full-year consolidated adjusted EBITDA guidance of $6.5 billion to $7.0 billion for 2025. It has been forecasted that around 90% of operational volumes will go toward fulfilling already standing long-term agreements.
Thus, Cheniere Energy, Inc. (NYSE:LNG) is looking at long-term growth with investments in infrastructure and continued expansion at Corpus Christi. The company poses to be a strong player in the industry with disciplined capital allocation and strategic investment choices, allowing it to make it to our list of the 10 Best LNG and LNG Shipping Stocks to Buy According to Analysts.
7. Chevron Corporation (NYSE:CVX)
Average Upside Potential: 11.34%
Number of Hedge Fund Holders: 81
Chevron Corporation (NYSE:CVX) is one of the biggest energy companies with operations in the upstream and downstream segments in the U.S. and globally. The company has control over an extensive transportation system for natural gas and crude oil, which includes pipelines and storage facilities. Furthermore, the company has LNG projects as well, such as the Angola LNG and the Mafumeira Sul.
Chevron Corporation (NYSE:CVX) reported adjusted earnings of $3.6 billion for the quarter ended December 31, 2024. It reported an increase of 7% in full-year production, supported by an 18% increase in Permian Basin production. As a result, the company was able to return a record $27 billion to shareholders, and reduce its share count by 10% in the past two years, owing to record output, especially from the Permian Basin.
Furthermore, its strong financial position is also reflected by its net-debt ratio of 10% at year-end. However, financials were also negatively impacted by restructuring charges and asset sales, hindering its cash flow in the short term. Chevron Corporation’s (NYSE:CVX) projects like Angola LNG and Mafumeira Sul are crucial to its LNG portfolio, adding to its growth potential, and enabling them to meet growing demand.
The company’s focus toward such LNG initiatives strengthens its ability to secure long-term contracts, supplementing a steady revenue stream. It is also generating revenue from its new energies business, with over $600 million coming through sales of bio-based diesel.
Chevron Corporation (NYSE:CVX) also has stakes in Australia’s Gorgon LNG, Wheatstone LNG, and Angola LNG, keeping up with its expansion goals. Thus, such efforts, coupled with strong cash positions, allow Chevron to be among the 10 Best LNG and LNG Shipping Stocks to Buy.
6. Baker Hughes Company (NASDAQ:BKR)
Average Upside Potential: 13.40%
Number of Hedge Fund Holders: 58
Baker Hughes Company (NASDAQ:BKR), an energy technology company, provides solutions for energy and industrial consumers around the world. The company has been in the liquefied natural gas (LNG) sector for over four decades, as it continues to expand its operations.
Baker Hughes Company (NASDAQ:BKR) recently secured a deal with Venture Global to source technology and equipment for the U.S. LNG projects. On the other hand, the company controls a portion of LNG production facilities in Qatar and Australia. Also, in order to support its global LNG strategy, the company has also signed a long-term capacity deal with the Zeebrugge LNG terminal. Thus, the strategic gameplay of the company has allowed it to expand and become a leading player in the LNG sector.
Due to growing demand for LNG and increased order flow, Baker Hughes Company (NASDAQ:BKR) reported $7.36 billion in revenue for the year ended December 31, 2024, which was up by 7.74% year-on-year. Free cash flow climbed up to $894 million, which resulted in a $1.3 billion return to shareholders through dividends and share repurchases. Baker Hughes Company (NASDAQ:BKR) enhanced operational optimization and sustained energy infrastructure investments, resulting in an increased earning and liquidity of $6.4 billion by year-end.
At the end of the year 2024, Baker Hughes Company (NASDAQ:BKR) recorded its second-highest annual order volume, with a total order worth $13 billion, signaling thriving demand for LNG equipment and energy solutions. Fueled by major contract wins, including two liquefaction compression trains with an 11 MTPA capacity for the LNG project for Woodside energy in Louisiana and the others, LNG orders secured $2.1 billion.
To fund its long-term growth in LNG infrastructure, Baker Hughes Company anticipates 100 MTPA of final investment decisions in between 2024 and 2026. Therefore, Baker Hughes remains strategically placed for long-term growth due to a strong order backlog, diversifying energy transition investments and unwavering demand for natural gas infrastructure.
5. Exxon Mobil Corporation (NYSE:XOM)
Average Upside Potential: 16.65%
Number of Hedge Fund Holders: 104
A pioneer in the global market for exploration and production of oil and natural gas, Exxon Mobil Corporation (NYSE:XOM) has major operations in the U.S., Papua New Guinea, Qatar, and the U.S. Gulf Coast. ExxonMobil yields 23 million tons per annum (mtpa) through its strategic ventures and affiliates, tactically positioning itself as a top player in the LNG market to meet international demand.
Exxon Mobil Corporation (NYSE:XOM) faced a slight dip in earnings in the year 2024, achieving $33.7 billion, as compared to $36 billion reported in 2023. This decline was majorly attributable to lower refining margins and natural gas prices from its 2023 highs.
However, the company’s weaker base volumes were cushioned by Guyana’s and Permian Basin’s strong volume growth and high-value product sales. Since 2019, the company also reported $12.1 billion in structural cost savings, strengthening its resilient financial position. Generating $55.0 billion in operating cash flow and $34.3 billion in free cash flow, Exxon Mobil Corporation (NYSE:XOM) supports its shareholder return program with $36.9 billion in dividends and share repurchases during the year.
The company holds a promising future with four top-tier LNG projects currently in development. This puts the company on track to achieve over 40 million metric tons per annum of LNG sales by the year 2030. To expand its global LNG footprint, ExxonMobil projects also include a $10 billion Golden Pass LNG project in the United States, which will have an export capacity of 18 million tons of LNG, beginning at the end of 2025.
By the end of 2025, the company expects to achieve its first LNG sales from the Golden Pass development and from the Qatar North Field East expansion. These projects in the pipeline set the stage for future growth for Exxon Mobil Corporation (NYSE:XOM) in the LNG sector, allowing it to make it to our list of the 10 Best LNG and LNG Shipping Stocks to Buy.
4. Energy Transfer LP (NYSE:ET)
Average Upside Potential: 16.93%
Number of Hedge Fund Holders: 37
Energy Transfer LP (NYSE:ET) is one of the top energy infrastructure players in the U.S. The company operates and owns an extensive network of assets including natural gas, natural gas liquid (NGL), crude oil and refined products. Energy Transfer operates over 32,000 miles of natural gas pipelines across intrastate and interstate networks, supplemented by storage facilities and export terminals.
For the year 2024, Energy Transfer LP (NYSE:ET) reported an adjusted EBITDA of $15.5 billion, which is a jump of 13% from 2023. The company’s distributable cash flow (DCF) was up by 10%, standing at $8.4 billion. This growth was supplemented by NGL exports, stable processing margins and higher transported volumes.
The company, in an effort to expand its LNG footprint, secured a 20-year LNG sale and purchase agreement from Chevron for its Charles LNG project. It is in the process of constructing its Hugh Brinson 400-mile-long pipeline, which would increase connectivity between the market and the Permian and move its CloudBurst project forward. This project targets the demand of natural gas from data centers.
However, Energy Transfer LP (NYSE:ET) does face challenges from the anticipated compression in the Waha basis spread. This points to the difference in natural gas prices at the Waha hub in West Texas when compared to other markets. While the margins can be affected by a narrower spread, the company’s extensive pipeline network and export capabilities add to its strong buffer capacity.
Moreover, the company is focused on LNG and midstream infrastructure with $5 billion planned CapEx in 2025. Thus, Energy Transfer LP (NYSE:ET) has a strong position in the global LNG market, which puts it among the Best LNG and LNG Shipping Stocks to Buy.
3. Shell plc (NYSE:SHEL)
Average Upside Potential: 17.78%
Number of Hedge Fund Holders: 54
Shell plc (NYSE:SHEL) is one of the leading energy companies with operations across the globe, including Europe, Asia, Africa, America, and Oceania. The company operates in multiple segments, which include Integrated Gas, Upstream, and Renewables, as well as the LNG sector. The company poses as a major global player with business in LNG exploration, production, trading, and transportation.
Shell plc (NYSE:SHEL) reported adjusted earnings of $3.7 billion for the Q4 ended on December 31, 2024, in light of lower prices and margins. Moreover, exploration well write-offs also went up, while the company reported non-cash impact of expiring hedging contracts on LNG trading. Nevertheless, the company showcased $22.6 billion in shareholder distributions under high cash flow, representing 41% of the total cash flow from its operations. However, the company reported an increase of $3.6 billion in its net debt to $38.8 billion because of the realization of the LNG Canada pipeline lease liability.
On the other hand, LNG sales volumes reached 15.5 MT, with liquefaction volumes at 7.1 MT for 2024, indicating Shell plc (NYSE:SHEL)’s healthy performance in LNG operations. The company is also expanding its LNG infrastructure with projects like LNG Canada and Prelude FLNG, increasing its global presence.
Moreover, Shell has looked to expand its portfolio through an agreement to acquire ConocoPhillips’ stakes in the Ursa and Europa Fields and the Ursa Oil Pipeline for a sum of $735 million, looking to be closed by Q2 2025. This agreement was finalized on January 1, 2025. Thus, the company looks to capitalize on the rising global demand for LNG, with its expansion intentions and efficient capital allocation.
2. TotalEnergies SE (NYSE:TTE)
Average Upside Potential: 19.37%
Number of Hedge Fund Holders: 26
TotalEnergies SE (NYSE:TTE) produces and markets oil, biofuels, natural gas, renewables and electricity. Its operations expand through Europe, North America, Africa, and globally. The company has operations in five major segments, which include Exploration & Production, Integrated LNG, Integrated Power, Refining & Chemicals, and Marketing & Services.
TotalEnergies SE (NYSE:TTE) reported adjusted net income of $18.3 billion for the year ended December 31, 2024. This income was supplemented by low upstream production costs below $5 per barrel, as well as expansion of reserves, enabling the company to increase its production. The company was able to distribute $8 billion in share buybacks and increase its dividends by 7% for the third consecutive year, in the light of high cash flow from operations of around $29.9 billion. However, its earnings took a hit due to lower LNG prices and weaker refining margins in Europe, specifically in Integrated LNG and Downstream operations.
Thus, TotalEnergies SE (NYSE:TTE) has enhanced its LNG flexibility by making use of the U.S. supply and regasification capacity in Europe to enhance its exposure to the market. Under its 2030 strategy, the company advanced its Mozambique LNG to achieve its 3 million tons of LNG target. Elsewhere, renewables and power saw cash flow more than double to $2.6 billion to exceed targets, as return on capital employed (ROCE) improved from 7% to 10%.
Looking ahead, TotalEnergies SE (NYSE:TTE) has projected a growth of 3% in its annual upstream production by 2030, which is supplemented by a 12.4-year reserve life index and efficient capital allocation. The company is focused on increasing its profitability and grabbing high-return opportunities, despite adjusting its CapEx guidance to $17 billion. The company stock is one of the Best LNG and LNG Shipping Stocks to Buy.
1. ConocoPhillips (NYSE:COP)
Average Upside Potential: 27.39%
Number of Hedge Fund Holders: 85
ConocoPhillips (NYSE:COP) is one of the top exploration and production companies. The company has an extensive global portfolio in crude oil, liquefied natural gas (LNG) and natural gas. Its operations span through Canada, Europe, Asia-Pacific and the U.S. shale basins, proving them to be a strong driving force in the LNG market.
The company reported total production of 1,987 million barrels of oil equivalent per day (MBOED) for the year ended December 31, 2024, which was a 3% year-on-year increase. Such an increase was made possible through strong output from the U.S. shale operations and higher LNG volumes.
Accordingly, ConocoPhillips (NYSE:COP)’s cash flow was around $21.3 billion, with support from better commodity prices and efficient capital allocation. However, the company’s net income was reported to be $11.2 billion, down from $18.7 billion in 2023. This decline can be attributed to higher costs as well as expenses related to acquisitions.
Moreover, ConocoPhillips (NYSE:COP) signed a long-term regasification agreement at Belgium’s Zeebrugge LNG terminal and a long-term LNG sales agreement in Asia, in order to bolster its LNG sales. They also hold stakes in LNG producing facilities in Australia and Qatar, indicating the company’s strategic expansion within the LNG sector.
The company also acquired Marathon Oil for $22.5 billion in late 2024 and divested $1.3 billion at the start of 2025 to streamline its portfolio and reduce debt. The divestment includes the sale of its interests in the Ursa and Europa Fields to Shell for $735 million, expected to close by Q2 2025, as well as the sale of $600 million worth of non-core Lower 48 assets. These efforts helped the company achieve its asset disposition target of $2 billion.
Looking ahead, ConocoPhillips (NYSE:COP) is expected to produce in a stable manner through 2025. It is looking to focus on high-return U.S. shale assets and LNG expansion. In light of such efforts, the company wants to hold an optimized portfolio, maintaining a strong cash flow, all set for long-term sustainable growth.
Overall ConocoPhillips (NYSE:COP) ranks first on our list of the Best LNG and LNG Shipping Stocks to Buy According to Analysts. While we acknowledge the potential of COP, our conviction lies in the belief that certain 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 COP but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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