8 Most Profitable Natural Gas Stocks To Invest In

3. EOG Resources, Inc. (NYSE:EOG)

Number of Hedge Fund Investors: 46

5-Year Net Income CAGR: 19.01%

TTM Net Income: $7.14 Billion

EOG Resources, Inc. (NYSE:EOG) was established in 1985 and is based in Houston, Texas. The company along with its subsidiaries, engages in the exploration, development, production, and marketing of crude oil, natural gas liquids, and natural gas, primarily in active basins within the United States, the Republic of Trinidad and Tobago, and other international locations.

EOG Resources, Inc. (NYSE:EOG) is making strategic infrastructure investments that are designed to ensure that the company can capitalize on the growing demand for North American natural gas. The company is building the Janus gas plant in the Delaware Basin, which is expected to be completed in 2025. Furthermore, the company has completed the Verde pipeline, which will be primarily used to transport natural gas extracted from the Dorado play in South Texas to the Agua Dulce hub in Texas to allow the company to access the Gulf Coast market.

The company is optimistic that new LNG projects, exports to Mexico, and increased power generation will drive about 10 to 12 billion cubic feet per day of new LNG capacity starting in 2025 and continuing through 2027. To capitalize on this trend, EOG Resources, Inc. (NYSE:EOG) in 2022, announced to drill 25 wells using two rigs in the Dorado area, which is part of the Eagle Ford and Austin Chalk formations. However, during the Q3 earnings call, management informed that the company now plans to continue a one-rig program in the Dorado area to improve efficiency and deepen its understanding of the play. The company estimates that Dorado holds about 21 trillion cubic feet of natural gas with a production cost of less than $1.25 per million British thermal units (MMBtu).