In this article, we take a look at the 10 best LNG stocks to buy now. If you want to skip our detailed analysis of the oil and natural gas industry, and the catalysts or inhibitors that have caused fluctuations in the industry’s performance, skip ahead to 5 Best LNG Stocks to Buy Now.
The world’s largest producer of liquified natural gas in 2020 was Australia. The country exported 106.2 billion cubic meters of LNG in 2020. Qatar was the runner-up exporter in 2020, with an export volume of 106.1 billion cubic meters, and the United States came in third, with an export volume of 61.4 billion cubic meters.
LNG Industry Outlook
According to the Shell LNG Outlook 2021, the global demand for liquefied natural gas increased to 360 million tonnes in 2020. LNG did not suffer relatively as much as other industries did as a consequence of the worldwide lockdowns due to the pandemic.
The little impact that the pandemic had on the global LNG market, such as a delay in certain projects, is certainly not hard to bounce back from, according to Royal Dutch Shell plc (NYSE:RDS). The oil giant forecasts the demand for LNG to roughly double to 700 million tonnes by 2040, from 360 million tonnes in 2020.
Several companies such as Cheniere Energy, Inc. (NYSE:LNG), Devon Energy Corporation (NYSE:DVN), and Chevron Corporation (NYSE:CVX) are investing heavily in building liquefaction facilities in order to reap the profits from the increasing global demand for liquified natural gas. Liquified natural gas is a cleaner and greener choice and economies around the world are shifting towards it, in efforts to battle climate change.
Oleksandr Kalinichenko / Shutterstock.com
Our methodology
We, at Insider Monkey, keep track of 867 hedge funds as of the third quarter of 2021. We carefully picked the best LNG stocks that were popular among these hedge funds to compile our list of the 10 best LNG stocks to buy now.
So without further ado, let’s dive into the 10 best LNG stocks to buy now.
Best LNG Stocks to Buy Now
10. Royal Dutch Shell plc (NYSE:RDS)
Number of Hedge Fund Holders: 33
Royal Dutch Shell plc (NYSE:RDS) is an energy and petrochemical company with operations worldwide. The company operates through four segments: Integrated Gas, Upstream, Oil Products, and Chemicals. Royal Dutch Shell plc (NYSE:RDS) was founded in 1907 and is headquartered in The Hague, the Netherlands.
By the end of the third quarter of 2021, 33 hedge funds, out of the elite 867 tracked by us at Insider Monkey, held stakes in Royal Dutch Shell plc (NYSE:RDS). The total value of these stakes was more than $2.05 billion.
This November, Argus analyst Bill Selesky raised his price target on Royal Dutch Shell plc (NYSE:RDS) to $54 from $46 and reiterated a Buy rating on the shares. Royal Dutch Shell plc (NYSE:RDS) turned over revenues of $60.04 billion for the third quarter of 2021, which is indicative of the growth of 36.40% year over year.
As of September 2021, Ken Fisher of Fisher Asset Management owns more than 18.15 million shares in Royal Dutch Shell plc (NYSE:RDS) which are worth $809 million. Fisher Asset Management is the leading stakeholder in Royal Dutch Shell plc (NYSE:RDS).
9. Antero Resources Corp (NYSE:AR)
Number of Hedge Fund Holders: 41
Antero Resources Corp (NYSE:AR) operates as an independent oil and natural gas company that acquires, explores for, develops, and produces natural gas, natural gas liquids, and oil properties in the United States. Antero Resources Corp (NYSE:AR) was founded in 2002 and is headquartered in Denver, Colorado.
On October 26, Raymond James analyst John Freeman raised his price target on Antero Resources Corp (NYSE:AR) to $32 from $19 and reiterated a Strong Buy rating on the shares.
We at Insider Monkey take a look at the hedge fund sentiment of stocks to determine how well the stock is performing in the market, and according to our data, by the end of the third quarter of 2021, 41 hedge funds held positions in Antero Resources Corp (NYSE:AR) with a total stake value of $973 million. This is compared to 33 positions in the second quarter, with stakes worth $841 million.
According to the latest September filings, SailingStone Capital Partners was the leading shareholder in Antero Resources Corp (NYSE:AR). The fund owns over 6 million shares of the stock, worth a total of $115.02 million. The investment covers a hefty 29.07% of SailingStone Capital Partner’s 13F portfolio.
8. Chesapeake Energy Corporation (NASDAQ:CHK)
Number of Hedge Fund Holders: 44
Last month, Chesapeake Energy Corporation (NASDAQ:CHK) was initiated with a Buy at UBS by analyst Lloyd Byrne, with a price target of $88. The analyst believes that its $2.2 billion acquisition of Vine Energy announced in August improves the company’s upside.
For the third quarter of 2021, Chesapeake Energy Corporation (NASDAQ:CHK) boasted earnings per share of $2.38, and beat expert EPS estimates by $0.69. The company’s revenue turnover was reported to be $1.17 billion, beating estimates by $360.8 million.
Chesapeake Energy Corporation (NASDAQ:CHK) is up 33% year to date.
Insider Monkey’s data shows that by the end of the third quarter of 2021, 44 hedge funds held stakes Chesapeake Energy Corporation (NASDAQ:CHK) worth $2.17 billion. The primary stakeholder in the company’s stock was Howard Marks’ Oaktree Capital Management.
7. Pioneer Natural Resources Company (NYSE:PXD)
Number of Hedge Fund Holders: 48
Pioneer Natural Resources Company (NYSE:PXD) is an independent oil and gas exploration and production company in the United States. The company explores for, develops, and produces oil, natural gas liquids (NGLs), and gas. It has operations in the Permian Basin in West Texas. Pioneer Natural Resources Company (NYSE:PXD) was founded in 1997 and is headquartered in Irving, Texas.
Pioneer Natural Resources Company (NYSE:PXD) reported its third-quarter earnings in September. The company reported earnings per share of $4.13, beating EPS estimates by $0.27. Pioneer Natural Resources Company (NYSE:PXD) generated revenues of $4.46 billion, which shows a 145.90% growth year over year. Moreover, the share price for the stock has gained 7% over the past six months.
This October, Mizuho analyst Vincent Lovaglio raised his price target on Pioneer Natural Resources Company (NYSE:PXD) to $263 from $231 and reiterated a Buy rating on the shares.
By the end of the third quarter of 2021, Insider Monkey found Pioneer Natural Resources Company (NYSE:PXD) to be a part of 48 hedge funds’ investment portfolios. The hedge funds held a total stake of $958.64 million in the oil and gas corporation. This is compared to 45 positions in the second quarter of 2021, with a total stake of $876.32 million.
Insider Monkey’s data shows Adage Capital Management to be in possession of the most shares of Pioneer Natural Resources Company (NYSE:PXD). As of September 30th, the fund owns more than 1.57 million shares in the company, which are worth $262.42 million.
6. EQT Corporation (NYSE:EQT)
Number of Hedge Fund Holders: 57
EQT Corporation (NYSE:EQT) operates as a natural gas production company in the United States. The company produces natural gas, natural gas liquids (NGLs), and crude oil. EQT Corporation (NYSE:EQT) was founded in 1878 and is headquartered in Pittsburgh, Pennsylvania.
On October 18th, Mizuho analyst Vincent Lovaglio raised his price target on EQT Corporation (NYSE:EQT) to $35 from $29 and reiterated a Buy rating on the shares.
For the third quarter of 2021, EQT Corporation (NYSE:EQT) reported earnings per share of $0.12, beating EPS estimates by $0.17.
Our data shows that by the end of the third quarter of 2021, 57 hedge funds out of 867 tracked by Insider Monkey held stakes in EQT Corporation (NYSE:EQT), worth $838.22 million. This is compared to 43 hedge positions in the previous quarter with stakes of $468.45 million. It can be observed that the hedge fund sentiment surrounding the stock is positive.
According to the September filings, Adage Capital Management is the leading shareholder in EQT Corporation (NYSE:EQT) with a total stake value of $81.74 million. The fund owns more than 3.99 million shares of EQT Corporation (NYSE:EQT) which represent 0.16% of its investment portfolio.
Click to continue reading and see 5 Best LNG Stocks to Buy Now.
Suggested articles:
Disclosure: None. 10 Best LNG Stocks to Buy Now is originally published on Insider Monkey.
