In this article, we discuss the 5 most profitable natural gas stocks in the world. To go through our detailed analysis of the gas and energy sectors, go directly to the 13 Most Profitable Natural Gas Stocks.
5. Cheniere Energy, Inc. (NYSE:LNG)
Number of Hedge Fund Holders: 58
Latest TTM Net Income: $12.44 billion
Headquartered in Houston, Texas, Cheniere Energy, Inc. (NYSE:LNG) actively participates in the LNG sector and oversees the Sabine Pass LNG terminal in Louisiana. On November 8, Cheniere Energy, Inc. (NYSE:LNG) announced its expectation that the inaugural LNG cargo from its Corpus Christi Liquefaction Stage 3 (CCL Stage 3) brownfield expansion project will depart by the end of 2024, surpassing the initially projected timeline.
Among the 910 hedge funds included in Insider Monkey’s database, 58 held stakes in Cheniere Energy, Inc. (NYSE:LNG). The most substantial hedge fund holding in Cheniere Energy, Inc. (NYSE:LNG) was from D. E. Shaw, which possesses a stake valued at $222.3 million in the company.
4. Chevron Corporation (NYSE:CVX)
Number of Hedge Fund Holders: 72
Latest TTM Net Income: $25.46 billion
Chevron Corporation (NYSE:CVX) is a distinguished American multinational energy company with a primary focus on the oil and gas industry. Originating as the Standard Oil Company of California, it stands as the second-largest direct descendant of Standard Oil. The company is headquartered in San Ramon, California, and operates in more than 180 countries globally.
On October 27, the energy company announced a quarterly dividend of $1.51 per share, maintaining the same dividend amount as the preceding period. Noteworthy is the company’s consistent dividend growth over the past 36 consecutive years, underscoring a steadfast commitment to rewarding shareholders.
As of the conclusion of the third quarter of 2023, 72 hedge funds out of the 910 included in Insider Monkey’s database held positions in Chevron Corporation (NYSE:CVX). Among these, Warren Buffett’s Berkshire Hathaway emerged as the largest investor, with ownership of 110.2 million shares valued at $18.59 billion.
The London Company Large Cap Strategy made the following comment about Chevron Corporation (NYSE:CVX) in its first quarter 2023 investor letter:
“Initiated: Chevron Corporation (NYSE:CVX) – CVX is an integrated energy and chemical producer. Its upstream segment explores for, produces, processes and transfers energy products. Its downstream segment refines and markets these products in addition to industrial plastics and fuel and lubricant additives. Among the major oil companies, CVX is the most levered to oil and gas production; it has one of the most successful exploration programs and among the best production profiles. CVX also has less exposure to the downstream business, which provides an above-peer operating margin profile and supports CVX’s return on invested capital. CVX has one of the strongest balance sheets in the oil industry with net debt/EBITDA of just 0.1x. The combination of its low cost positioning and strong balance sheet gives us greater confidence in downside protection despite its ties to a volatile commodity. We’re attracted to management’s rational approach to capital allocation, with consideration for the full cycle. In terms of capital allocation, CVX just announced a $75B share repurchase plan, and it pays a healthy 3.5% dividend. We have owned CVX in the past and it is the only Energy exposure in the Large Cap portfolio.”
3. BP p.l.c. (NYSE:BP)
Number of Hedge Fund Holders: 35
Latest TTM Net Income: $25.67 billion
BP p.l.c. (NYSE:BP), a British multinational oil and gas company headquartered in London, England, ranks as one of the oil and gas “supermajors” and stands among the world’s largest companies in terms of revenues and profits. On November 6, Morgan Stanley analyst Martijn Rats maintained an Overweight rating on BP p.l.c. (NYSE:BP) shares, albeit with a reduced price target of 610 GBp from the previous 700 GBp.
As of the close of Q3 2023, 35 hedge funds tracked by Insider Monkey reported having stakes in BP p.l.c. (NYSE:BP), compared with 36 in the preceding quarter. The collective value of these stakes is more than $2.05 billion.
2. Shell plc (NYSE:SHEL)
Number of Hedge Fund Holders: 49
Latest TTM Net Income: $29.3 billion
Shell plc (NYSE:SHEL) is a global energy giant renowned for its significant presence in the liquefied natural gas market. Its integrated gas division, prominently featuring LNG operations, has been the primary contributor to the company’s profits in four out of the last five years. This segment accounted for slightly over half of the company’s $14.7 billion in earnings during the first half of 2023. The company is actively working to further diversify its LNG export portfolio, having applied for a U.S. government license that would permit LNG exports to countries not covered by free trade agreements with the U.S.
During this year’s September quarter, 49 hedge funds out of the 910 that were polled by Insider Monkey had invested in Shell plc (NYSE:SHEL). The company’s biggest hedge fund shareholder is Ken Fisher’s Fisher Asset Management through a $1.44 billion stake that comes courtesy of 22.39 million shares.
1. Exxon Mobil Corporation (NYSE:XOM)
Number of Hedge Fund Holders: 79
Latest TTM Net Income: $41.13 billion
Exxon Mobil Corporation (NYSE:XOM) has been a key leader in the LNG business, with over 40 years of LNG project development experience. Boasting a heritage dating back to John D. Rockefeller’s Standard Oil, Exxon Mobil Corporation (NYSE: XOM) has undergone an evolution over 140 years. Initially established as a local kerosene distributor in the United States, the company has grown into a global powerhouse, standing among the leading publicly traded names in the petroleum and petrochemical sectors.
On November 2, Exxon Mobil Corporation (NYSE:XOM) announced the successful completion of its acquisition of Denbury Inc. in an all-stock transaction valued at $4.9 billion, equivalent to $89.45 per share based on XOM’s closing price on July 12, 2023. According to the terms of the agreement, Denbury shareholders will receive 0.84 shares of ExxonMobil for each Denbury share. The acquisition encompasses Gulf Coast and Rocky Mountain oil and natural gas operations, which include proven reserves exceeding 200 million barrels of oil equivalent (MMboe) as of year-end 2022, along with approximately 46,000 barrels of oil equivalent per day (boed) in current production. These operations not only generate immediate operating cash flow but also provide flexibility for carbon capture initiatives.
By the end of Q3 2023, data from Insider Monkey’s database revealed that 79 hedge funds had positions in Exxon Mobil Corporation (NYSE:XOM), an increase from the 71 hedge funds in the previous quarter. The combined value of these holdings exceeds $4.48 billion.
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