We recently published a list of 11 Best Performing Energy Stocks So Far In 2025. In this article, we are going to take a look at where National Fuel Gas Company (NYSE:NFG) stands against other best performing energy stocks so far in 2025.
The United States of America is currently producing more oil and gas than any other country ever. The country’s oil production has surged by almost 50% in the last ten years, reaching just over 13.45 million barrels per day in October 2024.
READ ALSO: 10 Best Liquefied Natural Gas (LNG) Stocks to Buy in 2025
That said, President Donald Trump’s tariffs on Canada and Mexico, due to take effect on Tuesday, will have serious consequences on the American economy which is highly dependent on imports of crude oil. Canada is the source of about 20% of oil used by Americans, while Canada and Mexico together account for 70% of US crude imports, so the upcoming tariffs could significantly raise gas prices for American consumers. Moreover, oil refiners in the Midwest depend heavily on Canadian crude and the said tariffs will force them to pay either more for their feedstock, or slash production, further squeezing an industry that already had a tough time last year.
President Trump wants to make America self-sufficient and independent when it comes to energy, but no matter how much oil the United States pumps, its refineries are configured to run heavier grades, such as those coming in from Mexico and Canada. Converting those refineries to process American light oil will require significant time and investments, making it an unlikely scenario.
The President has made repeated calls to American oil producers to ramp up their production, but it doesn’t seem to be going as planned, as companies appear reluctant to shell out the big bucks at a time when the global crude prices are in decline. The US Energy Information Administration stated in January that it expects Brent crude oil prices to fall 8% to average $74 a barrel in 2025, then fall further to $66 a barrel in 2026.
Things are looking much better for the country’s natural gas industry though, which has witnessed a surge in demand due to a sharp uptick in LNG exports, coupled with the ongoing AI data center boom. According to energy data provider Enverus, a total of 80 new gas power plants could be constructed in America by 2030, adding about 46 GW of new capacity – 20% higher than the gas capacity additions in the last five years. Moreover, growth is also expected to come from new LNG export facilities coming online soon, like Plaquemines LNG and Corpus Christi Stage 3, while the Golden Pass LNG project is also anticipated to begin operations by mid-2026. Having said that, Donald Trump has recently vowed to slap the EU with tariffs of 25%, and since the bloc remains the top destination for American LNG, the future of this industry isn’t clear either anymore.
The energy sector has outperformed the broader market so far this year, with gains of 1.31% against the general market’s surge of 0.41%. This comes after a disappointing 2024 when the energy sector lagged significantly behind gains of 25% by the wider market.
Methodology
To collect data for this article, we have referred to several stock screeners to find energy stocks that have surged the most YTD as of the close of February 28, 2025. The stocks are ranked according to their YTD gains.
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A large oil and gas production plant with pipelines leading to tanker truck and storage tanks.
National Fuel Gas Company (NYSE:NFG)
YTD Share Price Gains as of Feb. 28: 22.56%
National Fuel Gas Company (NYSE:NFG) is a diversified energy company that operates an integrated collection of natural gas assets across four business segments – Exploration & Production, Pipeline & Storage, Gathering, and Utility.
National Fuel Gas Company (NYSE:NFG) reported a revenue of $549.48 million in Q1 2025, down almost 4.6% YoY and missing analysts’ estimates by $87.73 million. However, the company’s adjusted EPS of $1.66 was above market expectations. Moreover, it reported a 35% YoY jump in its Pipeline & Storage income primarily due to the settlement of the Supply Corporation rate case, which led to increased rates. NFG also repurchased $34 million of shares during the quarter and is making smooth progress towards the completion of its $200 million share buyback program that it authorized in March 2024.
National Fuel Gas Company (NYSE:NFG) boasts a robust balance sheet and generated a little over $220 million in operating cash flow in Q1 2025. The company currently offers a quarterly dividend of $0.515 per share and has stretched its dividend growth streak to 54 years. NFG is counted among the 10 Best Mid-Cap Dividend Aristocrats to Buy.
Shares of National Fuel Gas Company (NYSE:NFG) were held by 29 hedge funds in the Insider Monkey database at the end of Q4 2024, with GAMCO Investors holding the largest stake valued at over $87.84 million.
Overall, NFG ranks 3rd on our list of best performing energy stocks so far in 2025. While we acknowledge the potential for NFG to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NFG but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
