The unseasonably warm weather across Europe and some parts of the United States drove natural gas prices down below $3 for the first time since May of 2021. Worries that suppliers would be unable to meet wintertime demands around the globe have been replaced by an unseasonably warm winter and other factors leading gas prices to drop more than 70%, after printing a 14-year high of $10.03 in August. This could all change fast, as an early February winter blast is expected.
In fact, Uzbekistan is expecting the coldest winter weather in 50 years. In true Wall Street style, the financial press is declaring the natural gas trade dead and soon to be buried. While it may not trade back to $10, there is a good chance it will be back about $4 soon, maybe as early as this week.
We screened our 24/7 Wall St. energy research database looking for companies that are leaders in natural gas production and have stocks that have been sold off as the commodity traded lower. Five top stocks hit our screens, and all are rated Buy across Wall Street and come with solid and dependable dividends. It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
Cheniere Energy
This top liquefied natural gas (LNG) play has backed up to levels not seen since the summer. Cheniere Energy Inc. (NYSEAMERICAN: LNG) is an energy company primarily engaged in LNG-related businesses. The company operates through two segments.
Cheniere’s LNG terminal segment consists of the Sabine Pass and Corpus Christi LNG terminals. Its LNG and natural gas marketing segment consists of LNG and natural gas marketing activities by Cheniere Marketing.
Cheniere Marketing is developing a portfolio of long- and medium-term sale and purchase agreements with professional staff based in the United States, the United Kingdom, Singapore, and Chile. The company conducts its business through its subsidiaries, including the development, construction, and operation of its LNG terminal business and the development and operation of its LNG and natural gas marketing business.
Cheniere Energy stock investors receive a 1.06% dividend. Citigroup’s $205 price target compares with a consensus target of $202.50 and Friday’s closing share price of $150.26.
Coterra Energy
This company was formed by the closing of the $17 billion merger of Cabot Oil & Gas and Cimarex Energy in 2021. Coterra Energy Inc. (NASDAQ: CTRA) is an independent oil and gas company engaged in the development, exploration and production of oil, natural gas and natural gas liquids (NGLs) in the United States. It primarily focuses on the Marcellus Shale, with approximately 177,000 net acres in the dry gas window of the play located in Susquehanna County, Pennsylvania.
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