8 Most Undervalued Natural Gas Stocks To Buy According To Analysts

4. BP p.l.c. (NYSE:BP) 

Upside Potential: 34.15%

Forward P/E Ratio as of December 9: 7.03

Number of Hedge Fund Investors: 36

Stock Price as of December 9: $28.70

BP p.l.c. (NYSE:BP) is a vertically integrated multinational oil and gas company headquartered in London. The company operates in almost all aspects of the oil and gas industry and operates in over 80 countries worldwide. In late 2022, BP p.l.c. (NYSE:BP) acquired Archaea Energy for $4.1 billion. Archaea Energy is now one of the largest renewable natural gas (RNG) producers in the United States.

Archaea is making significant strides in the RNG sector. The company plans to bring in a total of 15 plants online this year, with seven of them fully operational and another eight in the process of integrating into the midstream pipeline network. These eight plants are currently flowing natural gas and working through the necessary adjustments to ensure the effective separation of molecules, which is crucial for the smooth operation and efficiency of the gas flow.

BP p.l.c. (NYSE:BP) is also focusing on reducing its debt to strengthen its financial position and improve overall stability. On December 6, Reuters reported that BP p.l.c. (NYSE:BP) is finding buyers for a stake of up to 49% in its U.S. natural gas pipeline network. With the potential sale, the company aims to raise as much as $3 billion. This move is part of CEO Murray Auchincloss’ strategy to reduce BP p.l.c.’s (NYSE:BP) debt, which has to $24.3 billion at the end of September, up from $22.3 billion a year earlier, due to lower-than-expected asset disposals. BP p.l.c. (NYSE:BP) also plans to divest stakes in its Lightsource BP solar business and its U.S. onshore wind division.