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12 Best Gas Stocks To Buy Now

In this article, we will take a look at the 12 best gas stocks to buy now. To know more about the top stocks, go directly to 5 Best Gas Stocks To Buy Now.

Natural gas is one of the most important commodities in today’s world. According to a report by McKinsey, gas will be the strongest-growing fossil fuel and will increase by 0.9% from 2020 to 2035. The research also highlighted that gas will be the only fossil fuel that is anticipated to grow beyond 2030 and will reach its peak in 2037. Meanwhile, demand for liquefied natural gas is expected to rise sharply as domestic gas supply will be unable to meet the rising demand.

“Demand is expected to grow 3.4 percent per annum to 2035, with some 100 million metric tons of additional capacity required to meet both demand growth and decline from existing projects,” McKinsey added in its global gas outlook report to 2025.

The natural gas industry is prone to geopolitical challenges including the Russian invasion of Ukraine in February 2022 and the recent Israel-Hamas conflict in the Middle East. A report by Foreign Policy stated that if the tensions between Israel and Palestine worsen, they may impact gas production and best energy stocks globally. To learn more about the best energy stocks, go to 13 Best American Energy Stocks To Buy Now.

The demand for gas internationally is set to jump by 1.6% on average annually between 2022 and 2026, the International Energy Agency said in a report.

“The report notes that the advent of the global energy crisis in 2022, triggered by Russia’s invasion of Ukraine, has ushered in a different era for global gas markets after their decade of strong growth between 2011 and 2021,” the IEA commented.

In its short-term energy outlook report, the US Energy Information Administration said that it expects international liquid fuels production to rise by 1 million barrels per day next year. It also added that the Organization of the Petroleum Exporting Countries’ production cuts will be offset by the non-OPEC nations as they will help meet the energy demand. Looking at the US natural gas inventories, the EIA said that it forecasts “US natural gas inventories will end the winter heating season (November–March) 21% above the five-year average with almost 2,000 Bcf [billion cubic feet] in storage.” Thus, inventories are full as natural gas production remained high in the US this year and a warmer-than-average winter weather.

Looking ahead in terms of the best energy stocks, 2024 will be a vital season for the natural gas sector. The war in Ukraine and the Middle East will pose certain threats and they may affect gas production and the gas supply in the neighborhood. Also, inflation will also be a challenge to cater for, KPMG said in a research analysis which also added that:

“As Europe secures supplies for the 2023-24 winter, South and Southeast Asian markets may struggle to compete, with the agriculture sector likely to suffer the most. High gas prices may keep fertilizer costs and food prices at historically high levels. This could result in energy shortages, food insecurity and social unrest.”

As challenges remain for the best energy stocks and the natural gas sector despite rising demand, we decided to take a look at some of the best gas stocks to buy now.

Some best energy stocks include Exxon Mobil Corporation (NYSE:XOM), Chevron Corporation (NYSE:CVX), Shell plc (NYSE:SHEL), TotalEnergies SE (NYSE:TTE), BP p.l.c. (NYSE:BP), and others.

Don’t miss: 12 Best Crude Oil Stocks To Buy As Tensions Rise and 12 Best Performing Energy Stocks in 2023.

Our Methodology

For this article, we selected stocks that operate in the gas exploration and production sector. We then ranked 50 stocks based on overall hedge fund sentiment. The funds were assessed from Insider Monkey’s database of 910 elite hedge funds tracked at the end of the second quarter of 2023. The list was arranged in ascending order of the number of hedge fund holders in each firm and then the top 12 best gas stocks are selected for investment purposes.

Best Gas Stocks To Buy Now

12. Southwestern Energy Company (NYSE:SWN)

Number of Hedge Fund Holders: 44

Southwestern Energy Company (NYSE:SWN) ranks 12th in our list of the best gas stocks to buy now. The company explores, produces, and sells natural gas and oil in the US through its Exploration and Production, and Marketing segments. In June last year, Southwestern Energy Company (NYSE:SWN) signed an agreement to sell responsibly sourced gas to Uniper’s subsidiary for the latter’s US midstream gas portfolio. In August, credit rating Fitch maintained Southwestern Energy Company (NYSE:SWN)’s long-term issuer default rating at BB+, while the rating outlook was positive. The ratings were supported by the company’s production scale, exposure to liquefied natural gas plants, and others. In Q3, it posted adjusted earnings of $0.10 per diluted share and operating revenue of $1.4 billion.

Insider Monkey took a look at Q2 hedge fund portfolios for Southwestern Energy Company (NYSE:SWN) and found that 44 had stakes in the firm. David E. Shaw’s D E Shaw was the largest stakeholder of Southwestern Energy Company (NYSE:SWN) which bought about 29.5 million stakes that were valued at $177.1 million.

11. Chesapeake Energy Corporation (NASDAQ:CHK)

Number of Hedge Fund Holders: 44

Chesapeake Energy Corporation (NASDAQ:CHK) was incorporated in 1989 and is headquartered in Oklahoma. As one of the best energy stocks, it is currently mulling the acquisition of Southwestern Energy Company (NYSE:SWN). Last year, Chesapeake Energy Corporation (NASDAQ:CHK) completed the acquisition of oil and natural gas exploration and production firm Chief E&D Holdings for nearly $2.4 billion. Chesapeake Energy Corporation (NASDAQ:CHK) has recently entered into a deal with Vitol Inc. Under the deal, Chesapeake Energy will provide up to 1 million tonnes of liquefied natural gas to Vitol annually for a period of 15 years.

In Q3, its total net production was of roughly 3,495 mmcfe per day, out of which 97% production was of natural gas and 3% of total liquids. In its third quarter results, the firm said it expects to drill 35 to 45 wells and place 50 to 60 wells on production in Q4.

Out of 910 hedge funds profiled by Insider Monkey at the end of Q2, 44 held stakes in Chesapeake Energy Corporation (NASDAQ:CHK). The largest stakeholder was Howard Marks’ Oaktree Capital Management which owned 7.4 million stakes of Chesapeake Energy Corporation (NASDAQ:CHK) that were valued at $615 million.

Along with Chevron Corporation (NYSE:CVX), Occidental Petroleum Corporation (NYSE:OXY), and Exxon Mobil Corporation (NYSE:XOM), Chesapeake Energy Corporation (NASDAQ:CHK) is one of the best gas stocks to buy now.

10. Devon Energy Corporation (NYSE:DVN)

Number of Hedge Fund Holders: 45

Devon Energy Corporation (NYSE:DVN) drills and develops natural gas and natural gas liquids in the US. Being one of the best energy stocks, Devon Energy Corporation (NYSE:DVN) acquired Validus Energy, an Eagle Ford operator, for $1.8 billion in September 2022. In August, rating agency Fitch affirmed the firm’s long-term issuer default rating at BBB+. Pickering Energy on Nov. 9 upgraded Devon Energy Corporation (NYSE:DVN)’s rating to outperform from neutral. In Q3, it reported earnings of $1.42 per diluted share. In Q4, Devon Energy Corporation (NYSE:DVN) expects to reach production of 640,000 to 660,000 Boe per day.

Insider Monkey took a look at hedge fund portfolios for Devon Energy Corporation (NYSE:DVN)’s second quarter of 2023 investments and concluded that 45 had stakes in the firm. Ken Griffin’s Citadel Investment Group was Devon Energy Corporation (NYSE:DVN)’s largest stakeholder which owned 3.8 million stakes of the firm that were valued at $186 million.

9. EQT Corporation (NYSE:EQT)

Number of Hedge Fund Holders: 51

EQT Corporation (NYSE:EQT) was founded in 1878 and is headquartered in Pittsburgh, Pennsylvania. With a market capitalization of $16 billion, EQT Corporation (NYSE:EQT) operates as a natural gas production company in the US. At the end of 2022, it had 25 trillion cubic feet of proved natural gas, natural gas liquids, and crude oil reserves. It signed an agreement for liquefaction services to produce 1 million tons of liquefied natural gas yearly under a 15-year tolling agreement with Commonwealth LNG’s facility in Louisiana. In Q3, it posted adjusted earnings of $0.30 and revenue of $1.2 billion, while raising the base dividend by 5% to $0.63 per share annualized.

Out of 910 hedge funds profiled by Insider Monkey at the end of Q2, 51 had stakes in EQT Corporation (NYSE:EQT). The largest stakeholder was David E. Shaw’s D E Shaw which owned about 82.9 million stakes of the firm that were valued at $234 million.

8. PG&E Corporation (NYSE:PCG)

Number of Hedge Fund Holders: 51

PG&E Corporation (NYSE:PCG) sells and delivers electricity and natural gas to clients in California. The Oakland-based firm owns natural gas transmission, storage, and distribution system pipelines, backbone and local transmission pipelines, and different storage facilities. In March this year, it appointed Carolyn Burke as CFO, who most recently served as Chief Financial Officer at Chevron Phillips Chemical Company. In Q3, it posted earnings of $0.24 per share and operating revenue of $5.9 billion. In October, the company said it initiated a procedure to buy California-produced renewable natural gas for residential and small commercial clients.

At the end of June 30, PG&E Corporation (NYSE:PCG) had 51 hedge funds investors out of 910 funds tracked by Insider Monkey database. Dan Loeb’s Third Point was the largest stakeholder with 54 million stakes that were valued at $933.1 million.

7. Hess Corporation (NYSE:HES)

Number of Hedge Fund Holders: 52

Hess Corporation (NYSE:HES) is an exploration and production firm that explores, develops, produces, purchases, and sells crude oil, natural gas liquids, and natural gas. It usually operates in the US and Guyana, the Malaysia/Thailand Joint Development Area, and Malaysia. The New York-based company is currently in talks to be acquired by Chevron Corporation (NYSE:CVX) for roughly $53 billion in an all-stock transaction. The deal makes Hess Corporation (NYSE:HES) one of the best energy stocks to buy.

“This strategic combination brings together two strong companies to create a premier integrated energy company,” CEO John Hess said.

On Nov. 7, Argus upgraded Hess Corporation (NYSE:HES) to buy from hold.

At the end of Q2 this year, Hess Corporation (NYSE:HES) had 52 hedge funds investors out of 910 profiled by Insider Monkey database. The largest stakeholder was Ken Griffin’s Citadel Investment Group which had 1.5 million stakes of Hess Corporation (NYSE:HES) that were valued at around $200.8 million.

6. Pioneer Natural Resources Company (NYSE:PXD)

Number of Hedge Fund Holders: 54

Pioneer Natural Resources Company (NYSE:PXD) ranks 6th in our list of the best gas stocks to buy now. Incorporated in 1997 in Texas, Pioneer Natural Resources Company (NYSE:PXD) is in merger discussions with Exxon Mobil Corporation (NYSE:XOM) for around $60 billion. During its Q2 earnings call, President Rich Dealy said that the company “established a methane intensity target of 0.2% or less in 2025” and “recently completed the installation of fixed methane sensors, monitoring 80% of gas production.”

Out of 910 hedge funds profiled by Insider Monkey at the end of June 30, 54 had stakes in Pioneer Natural Resources Company (NYSE:PXD). The largest stakeholder was Donald Yacktman’s Yacktman Asset Management which owned about 1.3 million stakes of the firm that were valued at $264.2 million.

Along with Chevron Corporation (NYSE:CVX), Occidental Petroleum Corporation (NYSE:OXY), and Exxon Mobil Corporation (NYSE:XOM), Pioneer Natural Resources Company (NYSE:PXD) is one of the best gas stocks to buy now.

Click to continue reading and see 5 Best Gas Stocks To Buy Now.

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Disclosure: None. 12 Best Gas Stocks To Buy Now is originally published on Insider Monkey.

AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

Even Sam Altman, the founder of OpenAI, issued a stark warning:

“The future of AI depends on an energy breakthrough.”

Elon Musk was even more blunt:

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As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity.

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One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.

As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.

The “Toll Booth” Operator of the AI Energy Boom

  • It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
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AI. Energy. Tariffs. Onshoring. This One Company Ties It All Together.

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Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation.

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The Hedge Fund Secret That’s Starting to Leak Out

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A New Dawn is Coming to U.S. Stocks

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

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Should I put my money in Artificial Intelligence?

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Click to continue reading…