SandRidge Energy Inc. (SD), Apache Corporation (APA): Make Money in Growing Natural Gas Stocks the Easy Way

Apache Corporation (NYSE:APA) lost 27%, partly penalized for recent production levels that have been lower than hoped for. But that’s due to the company investing capital in projects that won’t immediately bump production much. About 11% of Apache’s revenue last year came from natural gas and, unlike some peers, it is cash-flow-positive, as well. Meanwhile, last month it hiked its dividend by a big 18%, so that it now yields 1.1% (versus 0% for many others). To some of our analysts, it seems inexpensive compared with its peers.

Devon Energy Corp (NYSE:DVN) fell 20%, and has also seemed like a bargain recently. It, too, has been shifting its focus more to oil and liquids. The company has been quite impressive, paying down debt, rapidly hiking its dividend, reducing its share count, and accumulating billions in cash. Some are wary of the cash, though, hoping the company doesn’t make unwise investments with it. Devon is also looking into spinning off an MLP that might include pipelines and other facilities.

The big picture
Demand for natural gas isn’t likely to go away anytime soon. A well-chosen ETF can grant you instant diversification across any industry or group of companies — and make investing in and profiting from it that much easier.

The article Make Money in Growing Natural Gas Stocks the Easy Way originally appeared on Fool.com and is written by Selena Maranjian.

Longtime Fool contributor Selena Maranjian, whom you can follow on Twitter, has no position in any stocks mentioned. The Motley Fool owns shares of Apache and Devon Energy.

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