10 Best Natural Gas Stocks To Invest In According to Hedge Funds

07. Antero Resources Corporation (NYSE:AR)

Number of Hedge Fund Holders: 42

Antero Resources Corporation (NYSE:AR) stands out as a strong contender in the natural gas sector, given its extensive involvement in the exploration, production, and marketing of natural gas, natural gas liquids (NGLs), and oil. The company holds an impressive acreage of 515,000 net acres in the Appalachian Basin and operates over 600 miles of gas gathering pipelines, positioning it as a leading player in the U.S. energy industry. In Q2 2024, Antero Resources Corporation (NYSE:AR) saw 42 hedge funds holding its stock, up from 39 in the previous quarter, further highlighting its growing appeal among institutional investors.

The company’s operational efficiency continues to shine, with record-breaking performance in the second quarter of 2024. Antero Resources Corporation (NYSE:AR) drilled wells averaging over 18,000 feet laterally, a 16% improvement from the previous record. Its ability to complete wells faster, reducing spud-to-kickoff time to 4 days from 4.4 days in 2023, underscores its industry leadership in drilling efficiencies. Antero also achieved its second-highest production rate per well in company history, with one pad producing an impressive 37 million cubic feet equivalent per day per well.

Financially, Antero Resources Corporation (NYSE:AR) capital efficiency is notable. The company maintains the lowest maintenance capital per Mcf equivalent among its peers at just $0.54 per Mcfe, significantly lower than the peer average of $0.95 per Mcfe. This efficiency, coupled with strong well performance, allowed Antero to increase its 2024 annual production guidance despite deferring payout from Q3 to later in the year.

On the NGL side, Antero Resources Corporation (NYSE:AR) benefits from strong global propane demand and export premiums, particularly in the U.S. Gulf Coast, where export capacity remains tight. Antero’s strategic positioning at the Marcus Hook terminal allows it to capture significant export premiums, providing a robust tailwind for its financial performance. Additionally, the company’s exposure to rising LNG demand, with 75% of its natural gas sold to the LNG corridor, positions it well for future growth as demand for natural gas in electric power generation and LNG exports continues to rise. In conclusion, Antero Resources Corporation (NYSE:AR) efficient operations, strong financial metrics, and growing hedge fund interest make it a top natural gas stock to consider.