8 Most Profitable Natural Gas Stocks To Invest In

2. Diamondback Energy, Inc. (NASDAQ:FANG)

Number of Hedge Fund Investors: 49

5-Year Net Income CAGR: 25.54%

TTM Net Income: $3.22 Billion

Diamondback Energy, Inc. (NASDAQ:FANG) is a US-based independent oil and natural gas company, specializing in unconventional, onshore oil and natural gas reserves in the Permian Basin of West Texas. The company utilizes advanced technologies and efficient drilling practices to maximize natural gas recovery while maintaining a low-cost operating structure.

Diamondback Energy, Inc. (NASDAQ:FANG) is prioritizing infrastructure and transportation solutions to access higher-value markets for its gas. In Q3, the company secured significant capacity on major pipelines, including Whistler and Matterhorn, with approximately 250 million cubic feet of gas per day of space. This ensures a substantial portion of the company’s gas production reaches markets where it can fetch better prices. Furthermore, the company holds a 10% stake in the upcoming Blackcomb pipeline, which will transport gas from the Permian Basin to South Texas and is anticipated to become operational in the coming years.

Diamondback Energy, Inc. (NASDAQ:FANG) is also exploring innovative strategies to enhance the value of its gas production. One initiative involves the development of power generation facilities utilizing its natural gas resources. By converting natural gas into electricity, the company aims to achieve higher margins and shield its operations from gas price volatility. The company is currently engaging with data center operators and other potential partners to develop power solutions that capitalize on the low-cost gas available in the Permian Basin.

Additionally, the company is investing in Verde Clean Fuels, which focuses on converting natural gas into low-carbon fuels. This investment aligns with the increasing demand for sustainable and cleaner energy solutions to monetize its gas resources effectively.