In this article we will take a look at the 15 most valuable gas companies in the world. You can skip our detailed analysis of the natural gas sector’s outlook for 2021, and go directly to the 5 Most Valuable Gas Companies in the World.
According to the International Energy Agency (IEA), natural gas accounts for a third of the total energy demand in the world. Natural gas is often referred to as a “transitional fuel” as it can bridge the gap between carbon-intensive fossil fuels like coal and oil, and renewable energy sources such as solar, wind, or thermal energy, etc. The global production of gas has shown a steady increase since 2008 and is largely driven by the development of shale fracking in the US.
Overall, a few countries dominate the largest natural gas reserves in the world. Amongst them are Russia and the United States. According to the BP Statistical Review of World Energy 2020, Russia is home to 1341 trillion cubic feet of proven natural gas reserves which is the largest in the world. State-backed Russian energy companies such as Public Joint Stock Company Gazprom (OTC: OGZPY) have ownership of about 71% of these gas reserves and produce 16% of the global total. Moscow-based Rosneft Oil Company (OTC: RNFTF) is also among the biggest natural gas producers in Russia and has the largest proven liquid hydrocarbon reserves.
Similarly, the US produced almost a quarter of the global gas supply in 2019. Most of the US natural gas is produced by horizontal drilling and fracturing methods onshore. The highest gas-producing regions in the country are Texas and Pennsylvania where major energy companies have established their drilling sites. Royal Dutch Shell plc (NYSE: RDS) has become one of the largest gas-producing firms in the US with annual sales of over $300 billion in over 70 countries.
Similarly, Exxon Mobil Corporation (NYSE: XOM) produced over 9.97 billion cubic feet of natural gas in a day in 2018. The company is making huge investments in natural gas exploration and recently acquired one of the largest independent natural gas producers in the US called XTO Energy. Moreover, Texas-based ConocoPhillips (NYSE: COP) acquired Montney Formation in Canada in July 2020 and Concho Resources in October 2020, to expand its operations and maintain its position as one of the most valuable gas companies in the world. The company reported total revenue of $180.54 in FY 2020 and has a market cap of $158.569 billion.
The future of the gas industry in the US is expected to grow as the shale revolution is in full swing, making use of the abundant gas reserves and novel cost-reducing technologies. According to McKinsey, by 2023, the US is expected to become the top LNG exporting region in the world due to the rising Asian LNG demand. Gas-powered electricity generation is already replacing coal power plants and is set to overtake nuclear energy in the long term. The affordability and flexibility of gas-fired power generation ensure that demand for the fuel remains protected for the coming years.
However, there are certain challenges as well. State-level decarbonization policies are increasing by the day which can result in reduced demand for natural gas especially in the power generation and local distribution company’s segment. Moreover, new energy technologies such as hydrogen and renewable electricity for low-temperature steam are being developed which may cause an accelerated shift from natural gas to other forms of energy.
The leading gas companies in the world are making use of technological innovation and the latest techniques to boost the production of natural gas and use it for power generation in a sustainable way.
Photo by Robin Sommer on Unsplash
With this context in mind, let’s now take a look at the 15 most valuable gas companies in the world ranked according to their market cap.
Most Valuable Gas Companies in the World
15. EOG Resources, Inc. (NYSE: EOG)
Market Cap: $42.52 billion
EOG Resources, Inc. (NYSE: EOG) is an oil and gas company that is involved in the exploration, production, and marketing of natural gas and natural gas liquids. Its primary production areas are in Texas and New Mexico, Tobago, Trinidad, China, and Oman. The company owns 5,360 billion cubic feet of natural gas reserves as of 2020. It was formerly known as Enron Oil and Gas Company. EOG Resources, Inc. (NYSE: EOG) reported total revenue of $9.87 billion in 2020. It has also discovered a large natural gas resource in Webb Country Texas and has already identified 1250 premium drilling locations across the resource play. Based on its market cap of $42.52 billion, EOG Resources, Inc. (NYSE: EOG) ranks 15th in the list of the most valuable gas companies in the world.
Like Exxon Mobil Corporation (NYSE: XOM), Chevron Corporation (NYSE: CVX), Royal Dutch Shell plc (NYSE: RDS), BP p.l.c. (NYSE: BP), PetroChina Company Limited (NYSE: PTR), and ConocoPhillips (NYSE: COP), EOG Resources, Inc. (NYSE: EOG) is one of the most valuable gas companies in the world.
Artisan Partners, in its Q1 2021 investor letter, mentioned EOG Resources, Inc. (NYSE: EOG), and shared their insights on the company. This is what they said:
“EOG Resources is a US shale-focused E&P firm. The business enjoys a low-cost production position and a strong balance sheet which enabled the company to increase production capabilities during the downturn. As energy prices recover and the industry adjusts to the new supply and demand dynamics, investors have begun to appreciate the earnings power of the business. EOG’s management also focuses on return on investment capital and cash flow generation, which are distinguishing factors from most of their competition. We believe EOG has the right combination of a high-quality management team and access to low cost reserves to thrive.”
14. Eni S.p.A. (NYSE: E)
Market Cap: $42.58 billion
Eni S.p.A. (NYSE: E) is an Italian energy conglomerate which is based in Rome. It is considered to be one of the seven supermajor oil companies in the world with operations in 66 countries as of 2020. The company reported total revenue of $48.98 billion in 2020 and currently has a market cap of $42.58 billion. Eni S.p.A. (NYSE: E) has natural gas operations mainly in Sub-Saharan Africa, Asia, Europe, and the Americas. The company had a total natural gas production of 5.3 billion cubic feet per day in 2019.
Eni S.p.A. (NYSE: E) has recently been in the news as it was ranked as the 7th most environmentally responsible company involved in resource extraction in the Arctic Environmental Responsibility Index (AERI). The company ranks 14th in the list of the 15 most valuable gas companies in the world.
Like Exxon Mobil Corporation (NYSE: XOM), Chevron Corporation (NYSE: CVX), Royal Dutch Shell plc (NYSE: RDS), BP p.l.c. (NYSE: BP), PetroChina Company Limited (NYSE: PTR), and ConocoPhillips (NYSE: COP), Eni S.p.A. (NYSE: E) is one of the most valuable gas companies in the world.
13. PJSC LUKOIL (OTC: LUKOY)
Market Cap: $56.034 billion
PJSC LUKOIL (OTC: LUKOY) is a Russian energy giant that is based in Moscow. The multinational energy corporation is involved in the production and sale of natural gas, petroleum, and petroleum products. After Gazprom, Lukoil is the second-largest energy company in Russia. PJSC LUKOIL (OTC: LUKOY) operates in 40 countries worldwide and owns 7 oil-processing companies in Europe. It also operates a retail network of 5,005 filling gas stations spanning 19 countries. In 2020, the company reported total revenue of $71.01 billion. The Russian gas giant has made the list of the 15 most valuable gas companies in the world.
12. Equinor ASA (NYSE: EQNR)
Market Cap: $64.087 billion
Equinor ASA (NYSE: EQNR) is a Norwegian oil and gas company that operates in 36 countries worldwide. The company is headquartered in Stavanger, Norway, and was formerly known as Statoil. Statoil and the oil and gas division of Norsk Hydro merged to form Equinor which is now one of the largest operators on the Norwegian continental shelf. Equinor ASA (NYSE: EQNR) has operations in gas fields across Australia, Angola, Algeria, Azerbaijan, Brazil, China, Canada, Libya, the US, Venezuela, and Russia. The company’s natural gas sales volume was 54.8 billion cubic meters in 2020 while total revenue was reported to be $45.7 billion. With a market cap of $64.087 billion, Equinor ASA (NYSE: EQNR) is the number 12 most valuable gas company in the world.
Like Exxon Mobil Corporation (NYSE: XOM), Chevron Corporation (NYSE: CVX), Royal Dutch Shell plc (NYSE: RDS), BP p.l.c. (NYSE: BP), PetroChina Company Limited (NYSE: PTR), and ConocoPhillips (NYSE: COP), Equinor ASA (NYSE: EQNR) is one of the most valuable gas companies in the world.
In the Q2 2021 investor letter of Massif Capital, the fund mentioned Equinor ASA (NYSE: EQNR) and discussed its stance on the firm. This is what they said:
“We currently have two oil-related positions in our portfolio and believe the oil opportunity set is ripe. As one might expect, both positions, (including Equinor: EQNR) performed well during the second quarter, given the steady march higher that oil has made in recent months. We maintain a positive outlook for both companies, although, importantly, our posture is not predicated on an expectation for continued oil price appreciation. This is not because of our inability to imagine scenarios where that does occur, but more out of an abundance of caution for what is a highly volatile commodity that at current price levels should be more than sufficient to generate ample free cash flow for any investable oil firm.
In the future, we expect both firms in the portfolio to generate significant free cash flow and expect EQNR to reinvest that free cash flow into a combination of offshore oil and wind opportunities with high rates of return. The path forward for AOI is more complicated and does warrant a few comments.”
11. China Petroleum & Chemical Corporation (NYSE: SNP)
Market Cap: $72.089 billion
China Petroleum & Chemical Corporation (NYSE: SNP) or Sinopec is an energy and chemical firm that is involved in oil and gas exploration, production, storage, and sale. It was founded in 2000 and is based in Beijing. The company also produces biofuels such as ethanol and green jet fuel.
China Petroleum & Chemical Corporation (NYSE: SNP) recently built the Jiaze Gas Station, which is the first of its kind and will help China achieve carbon neutrality. In the next 5 years, the company is set to build 900 carbon-neutral gas stations. The company reported total revenue of $325.9 billion in 2020 and has a market cap of $72.089 billion, earning the number 11 spot in the list of the 15 most valuable gas companies in the world.
10. Public Joint Stock Company Rosneft Oil Company (OTC: RNFTF)
Market Cap: $75.525 billion
Public Joint Stock Company Rosneft Oil Company (OTC: RNFTF) is an integrated oil and gas company based in Moscow, Russia. It operates in more than 20 countries worldwide and is involved in the exploration, production, refining, marketing, transport, and sale of natural gas and petroleum products. Rosneft is the largest natural gas producer in Russia and has the largest proven liquid hydrocarbon reserves as well. The company reported total revenue of $77.9 billion in 2020 and has a market cap of $75.5 billion, making it one of the most valuable gas companies in the world.
9. ConocoPhillips (NYSE: COP)
Market Cap: $75.648 billion
ConocoPhillips (NYSE: COP) is a Texas-based multinational that is involved in the exploration of hydrocarbons. The company operates in 17 countries including the US which accounts for 49% of its production along with Canada, Norway, Australia, Indonesia, Malaysia, China, and Qatar. It produced 595 million cubic feet per day of natural gas in the US in 2020 alone.
ConocoPhillips (NYSE: COP) acquired Montney Formation in Canada in July 2020 and Concho Resources in October 2020, to expand its operations and maintain its position as one of the most valuable gas companies in the world. ConocoPhillips (NYSE: COP) reported total revenue of $18.7 billion in 2020 and has shown strong financial performance over the year. With a market cap of $75.648 billion, the company ranks 9th in the list of the 15 most valuable gas companies in the world.
ClearBridge Investments, in its Q1 2021 investor letter, mentioned ConocoPhillips (NYSE:COP) and shared their insights on the company. Here is what they said:
“While reducing in health care and consumer staples, we increased our exposure to high-quality names in economically sensitive areas of the market. We added to low-cost, high-quality energy names (including) ConocoPhillips. We are positive on the company’s strong balance sheets, competitive positions and exposure to an economic recovery.”
8. Public Joint Stock Company Gazprom (OTC: OGZPY)
Market Cap: $92.216 billion
Public Joint Stock Company Gazprom (OTC: OGZPY) is a Russian integrated oil and gas company that is involved in the exploration, production, storage, transportation, and sale of gas, gas condensates, and oil globally. Headquartered in Moscow, Russia, it is the largest company in Russia by revenue. In fact, the total revenue of Gazprom in 2020 was reported to be $86.8 billion.
Public Joint Stock Company Gazprom (OTC: OGZPY) is vertically integrated and operates in every segment of the gas industry. The company produced 12% of the global output of natural gas in 2018 i.e., 497.6 billion cubic meters of natural and associated gas and 15.9 million tons of condensate. The company ranks 8th in the list of the 15 most valuable gas companies in the world.
7. PetroChina Company Limited (NYSE: PTR)
Market Cap: $125.987 billion
PetroChina Company Limited (NYSE: PTR) is a Chinese oil and gas company which is based in Beijing. It is currently the largest producer of oil and gas in Asia and the 32nd largest public company in the world according to Forbes. The company reported total revenue of $299.2 billion in 2020. PetroChina Company Limited (NYSE: PTR) has a separate natural gas and pipeline segment which is involved in the transmission and sale of natural gas and its products. As of 2020, the company has 22,555 km long natural gas pipelines for quick and efficient transportation. In 2020, PetroChina Company Limited (NYSE: PTR) produced approximately 4.2 trillion cubic feet of natural gas compared to 3.9 trillion cubic feet in the previous year. With a market cap of $125.9 billion, it is one of the most valuable gas companies in the world.
Like Exxon Mobil Corporation (NYSE: XOM), Chevron Corporation (NYSE: CVX), Royal Dutch Shell plc (NYSE: RDS), BP p.l.c. (NYSE: BP), PetroChina Company Limited (NYSE: PTR), and ConocoPhillips (NYSE: COP), PetroChina Company Limited (NYSE: PTR) is one of the most valuable gas companies in the world.
6. TotalEnergies SE (NYSE: TTE)
Market Cap: $115.194 billion
TotalEnergies SE (NYSE: TTE) is a French oil and gas integrated company that is considered as one of the 7 supermajor oil companies of the world. However, it not only covers the oil industry but is involved in natural gas production and exploration as well. Forbes Global 2000 ranked TotalEnergies SE (NYSE: TTE) 29th in the list of the largest public companies in the world. The company has recently announced a collaboration with Amazon to provide 100% renewable energy to power its operations while Amazon will help TotalEnergies in its digital transformation.
The company has developed a diversified portfolio and is focusing on deep offshore production and liquefied natural gas. TotalEnergies SE (NYSE: TTE) is investing heavily in regasification infrastructure to promote the use of natural gas in power generation. Moreover, to lower the carbon emissions of natural gas, the company is attempting to find renewable gas and low-carbon hydrogen which is environmentally sustainable. TotalEnergies SE (NYSE: TTE) reported total revenue of $119.7 billion in 2020. The company ranks 6th in the list of the 15 most valuable gas companies in the world.
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Disclosure: None. 15 Most Valuable Gas Companies in the World is originally published on Insider Monkey.
