In this piece, we will take a look at the fifteen biggest gas companies in the world. If you want to jump ahead to the top five companies in this list, then take a look at 5 Biggest Gas Companies in the World.
The Gas Industry: An Analysis
The ongoing crisis in Ukraine and the global push toward clean energy have placed an even higher premium on natural gas. The fuel has multiple advantages over both renewable energy and crude oil. Natural gas is a clean burning fuel, which results in fewer emissions and it is also able to generate higher amounts of energy per kilogram.
Globally, gas is being sold at a premium and prices touched record high earlier this year when they crossed $10 per MMBtu. The prices have almost halved since then, and the natural gas futures market, which bets on the prices of the commodity for the next month, are also significantly down year to date. Yet, the futures continue to trade at the higher end of their 52-week range, as the shock in prices that erupted this year continues to make its mark felt.
As for the gas industry itself, it is still one of the largest in the world and according to the research firm The Business Research Company, the market was worth $840 billion last year. From then to the end of this year, it will grow at a compounded annual growth rate (CAGR) of 12% to sit at $940 billion. Additionally, the firm goes on to add that from the end of 2022 to 2026, the market will grow at a 6.9% CAGR and be worth $1.23 trillion by the end of the forecast period.
For our list for you today, we will take a look at the largest natural gas companies in the world, and among the publicly traded names, the ones likely to catch your eye are Saudi Arabian Oil Company (TADAWUL:2222.SR), Shell plc (NYSE:SHEL), and Exxon Mobil Corporation (NYSE:XOM).
Photo by Robin Sommer on Unsplash
Our Methodology
In order to sift out the largest natural gas companies in the world, we studied the revenue of the companies and then ranked them according to their net sales. Hedge fund interest courtesy of Insider Monkey’s Q2 2022 survey of 895 funds is also provided.
Biggest Gas Companies in the World
15. Reliance Industries Limited (NSE:RELIANCE.NS)
Number of Hedge Fund Holders: N/A
Revenue By the end of 2021: $107 billion
Reliance Industries Limited (NSE:RELIANCE.NS) is one of the largest Indian multinational companies that is headquartered in Mumbai. The firm has stakes in several businesses, such as oil and gas, media, textiles, and telecommunications.
Reliance Industries Limited (NSE:RELIANCE.NS)’s subsidiary, Reliance Petroleum is one of the largest oil and gas companies in the world, and its Jamnagar Refinery is capable of processing 1.2 million barrels of oil per stream day, making it the largest refinery in the world. Reliance Petroleum raked in $107 billion in revenue last year, and Reliance Industries Limited (NSE:RELIANCE.NS)’s revenue is expected to stand at $150 billion as this year ends.
Reliance Industries Limited (NSE:RELIANCE.NS) joins our list of the biggest gas companies in the world, alongside others such as Shell plc (NYSE:SHEL), Saudi Arabian Oil Company (TADAWUL:2222.SR), and Exxon Mobil Corporation (NYSE:XOM)
14. Valero Energy Corporation (NYSE:VLO)
Number of Hedge Fund Holders: 43
Revenue By the end of 2021: $114 billion
Valero Energy Corporation (NYSE:VLO) is an American petroleum company that is headquartered in San Antonio, Texas. The firm sells petroleum products, natural gas liquids, and jet fuel for the U.S. military.
Valero Energy Corporation (NYSE:VLO) raked in $114 billion in 2021, and the firm owns 15 refineries that have a combined output of 3.2 million barrels per day. Wells Fargo increased its share price target to $137 from $131 in October 2022, highlighting that it is well suited to generate positive cash flow from operations.
Insider Monkey’s Q2 2022 survey of 895 hedge funds outlined that 43 had held a stake in Valero Energy Corporation (NYSE:VLO).
Out of these, Israel Englander’s Millennium Management is Valero Energy Corporation (NYSE:VLO)’s largest investor. It owns 1.8 million shares that are worth $201 million.
13. Phillips 66 (NYSE:PSX)
Number of Hedge Fund Holders: 38
Revenue By the end of 2021: $115 billion
Phillips 66 (NYSE:PSX) is one of the oldest oil and gas companies in the world as it was set up in 1875 and is based in Houston, Texas, the United States. It produces, stores, transports, and markets natural gas liquids.
By the end of 2021, Phillips 66 (NYSE:PSX) had managed to rake in $115 billion in revenue, and in October 2022 it took the step of introducing electric vehicle chargers at its fuel stations in Houston. The firm plans to roll these chargers out in partnership with another company at its 7,000 fuel stations across America
As part of their June quarter of 2022 investments, 38 out of the 895 hedge funds polled by Insider Monkey had bought Phillips 66 (NYSE:PSX)’s shares.
Phillips 66 (NYSE:PSX)’s largest investor is D.E. Shaw’s D E Shaw which owns 3.4 million shares that are worth $282 million.
12. Marathon Petroleum Corporation (NYSE:MPC)
Number of Hedge Fund Holders: 50
Revenue By the end of 2021: $120 billion
Marathon Petroleum Corporation (NYSE:MPC) is an American downstream energy company that processes and transports natural gas and other petroleum products. It is based in Findlay, Ohio.
Marathon Petroleum Corporation (NYSE:MPC) brought in $120 billion in net sales by the end of the calendar year 2021, as it nearly doubled its 2020 revenues of $70 billion. The company is in the midst of a joint venture agreement that will see it produce renewable diesel fuel through a facility that is capable of producing 2.1 million tons annually.
Insider Monkey’s Q2 2022 survey of 895 hedge funds outlined that 50 owned Marathon Petroleum Corporation (NYSE:MPC)’s shares.
Marathon Petroleum Corporation (NYSE:MPC)’s largest investor in our database is Paul Singer’s Elliott Management which owns 11 million shares that are worth $909 million.
11. Public Joint Stock Company Rosneft Oil Company (LSE:ROSN.L)
Number of Hedge Fund Holders: N/A
Revenue By the end of 2021: $121 billion
Public Joint Stock Company Rosneft Oil Company (LSE:ROSN.L) is a Russian state owned company that produces and sells natural gas and other petroleum products. The company also became the largest publicly traded oil company in 2013.
Public Joint Stock Company Rosneft Oil Company (LSE:ROSN.L) earned $121 billion in revenue in 2021, a year after it had managed to produce more than four million barrels of oil daily. By the end of 2020, it also produced 63 billion cubic meters of natural gas, accounting for one fifth of Russia’s total production. The firm’s Russian oil refineries have an annual capacity of 372 million barrels and it also has stakes in four German refineries.
10. PJSC LUKOIL (OTCMKTS:LUKOY)
Number of Hedge Fund Holders: N/A
Revenue By the end of 2021: $128 billion
PJSC LUKOIL (OTCMKTS:LUKOY) claims to be one of the largest oil companies in the world that is responsible for 2% of global oil production. It is headquartered in Moscow, Russia, and produces and sells oil and gas.
PJSC LUKOIL (OTCMKTS:LUKOY) has a massive 15.4 billion barrels of oil equivalent (boe) of reserves under its portfolio as of 2021 end. It also has a large global footprint, with operations in more than 30 countries and 2.1 million boe of refinery production daily. PJSC LUKOIL (OTCMKTS:LUKOY) brought in $128 billion in revenue by 2021 end, and unlike some other oil companies, it also produces 5,800 megawatts of electricity, most of which is for commercial use.
9. Public Joint Stock Company Gazprom (MCX:GAZP.ME)
Number of Hedge Fund Holders: N/A
Revenue By the end of 2021: $139 billion
Public Joint Stock Company Gazprom (MCX:GAZP.ME) is a Russian gas company headquartered in Moscow. The firm produces, stores, transports, and distributes natural gas.
Public Joint Stock Company Gazprom (MCX:GAZP.ME)’s revenue by the end of 2021 was $139 billion, making it one of the largest energy companies in the world that solely distribute and sell natural gas. The company is responsible for producing 12% of the world’s natural gas and in the Russian market, it has a 68% market share. Public Joint Stock Company Gazprom (MCX:GAZP.ME) also has a transmission system spanning close to 200 kilometers, and its flagship project is the NordStream gas pipeline for supplying gas to Europe.
8. BP p.l.c. (NYSE:BP)
Number of Hedge Fund Holders: 27
Revenue By the end of 2021: $158 billion
BP p.l.c. (NYSE:BP) produces and sells natural gas, and other petroleum fuels such as aviation fuels. The firm also generates renewable energy through wind and solar plants. It is headquartered in London, United Kingdom, and was set up in 1907 – making it one of the oldest companies of its kind.
BP p.l.c. (NYSE:BP) operates oil fields all over the globe, in the United Kingdom, Alaska, Azerbaijan, and Norway. The firm earned $158 billion in revenue by 2021 end, and it is aiming to be net zero in carbon emissions by 2025. BP p.l.c. (NYSE:BP) also aims to invest at least 40% of its capital expenditure into bioenergy and electric vehicle charging by 2025.
Insider Monkey’s June quarter of 2022 survey that covered 895 hedge funds revealed that 27 had owned a stake in BP p.l.c. (NYSE:BP).
Out of these, Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital is BP p.l.c. (NYSE:BP)’s largest shareholder as it holds 26 million shares that are worth $750 million.
7. Chevron Corporation (NYSE:CVX)
Number of Hedge Fund Holders: 59
Revenue By the end of 2021: $162 billion
Chevron Corporation (NYSE:CVX) is an American company that explores, develops, produces, transports, and sells crude oil and natural gas. The firm is headquartered in San Ramon, California.
Chevron Corporation (NYSE:CVX) raked in $162 of net sales in 2021, and the firm is believed to be one of the beneficiaries of the recent OPEC+ production cut. This is due to the fact that Chevron Corporation (NYSE:CVX) might be allowed to produce oil in Venezuela as the U.S. government considers easing sanctions on the country to increase oil production.
By the end of this year’s second quarter, 59 out of the 895 hedge funds polled by Insider Monkey had invested in Chevron Corporation (NYSE:CVX).
Chevron Corporation (NYSE:CVX)’s largest investor is Warren Buffett’s Berkshire Hathaway which owns 161 million shares that are worth $23 billion.
6. TotalEnergies SE (NYSE:TTE)
Number of Hedge Fund Holders: 20
Revenue By the end of 2021: $206 billion
TotalEnergies SE (NYSE:TTE) explores oil and natural gas all over the world. It also produces liquefied natural gas (LNG) and generates electricity from natural gas, solar power, wind, and hydroelectric plants.
TotalEnergies SE (NYSE:TTE) is under pressure in France to increase worker wages as high inflation grips the global economy. This comes after a worker strike has cut down the French oil output by 60%. For its 2021 revenues, TotalEnergies SE (NYSE:TTE), which is one of the largest oil and gas companies in the world, reported $206 billion worth of net sales.
JPMorgan raised TotalEnergies SE (NYSE:TTE)’s share price target to EUR66 from EUR60 in October 2022. Insider Monkey’s Q2 2022 survey of 895 hedge funds revealed that 20 had invested in the company.
TotalEnergies SE (NYSE:TTE)’s largest investor in our database is Ken Fisher’s Fisher Asset Management which owns 26 million shares that are worth $1.4 billion.
Artisan Partners mentioned the company in its Q3 2022 investor letter. Here is what the fund said:
“We added one new position this quarter, TotalEnergies SE (NYSE:TTE). TTE is one of the world’s largest energy companies. It develops and produces oil and gas, produces and sells refined products, is one of the largest producers and traders of LNG, and owns a large portfolio of renewable power generating assets. TTE has one of the lowest cost portfolios of oil and gas assets and therefore one of the lowest breakeven points in the industry. It also has one of the best balance sheets in the industry. We estimate it will reach a net cash position sometime in 2023.
The valuation of TTE—and that of Shell—is fascinating. TTE sells at approximately 4X earnings and has a 5% dividend yield. With its current buyback program and a recently announced special dividend, the owners yield is more than 10%. The valuation and owners yield are not dissimilar to those of Shell, which we also own and which trades at just under 5X earnings. To say that a discount is attached to European oil companies relative to US peers is an understatement. Exxon Mobil sells at 8X earnings, Chevron 9X and Conoco 8X. If TTE and Shell redomiciled to the US, their share prices would probably double.
Saudi Arabian Oil Company (TADAWUL:2222.SR), Shell plc (NYSE:SHEL), and Exxon Mobil Corporation (NYSE:XOM) are met by TotalEnergies SE (NYSE:TTE) in our list of the world’s largest gas companies.
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Disclosure: None. 15 Biggest Gas Companies in the World is originally published on Insider Monkey.