Companies that are players in the natural gas field are expected to see an uptick in the commercial use of natural gas in 2017. The industry as a whole is expected to rise about 6% this year.
If you're looking to invest in natural gas, we've got you covered. Here's a list of some interesting stock picks that might fit your portfolio. As a note, a lot of these companies do not deal specifically in natural gas, but derive a lot their income from natural gas, among other areas.
In the News
Petronet LNG, Ltd. (OTC:PQRTY) is India's largest liquefied natural gas company and they've recently made headlines by securing a deal to invest in gas pipelines to Sri Lanka. Their goal is to revolutionize the pipeline system in Sri Lanka.
Saudi Aramco (ARMCO), Saudi Arabia's behemoth national oil company, will start investing in the global production of gas and liquefied natural gas after rolling out its initial public offering. They don't come bigger than this and while the company isn't public yet, they have plans to IPO sometime in 2017. Keep an eye out.
Israeli Firm, Delek Group (OTCPK:DGRLY) says it plans to start exploring Turkey for natural gas reserves. Delek Group is vast and operates over various industries. Although they've predominantly maintained their exploration and production activities to Israel and the Israeli shore, the Mediterranean waters off of the coast of Turkey will play host to further exploration. Delek Group found the two largest offshore oil reserves in the world when they found Tamar and Leviathan off the aforementioned coast of Israel. Turkey will also diversify its intake of natural gas by buying some of Delek Group and Israel's gas from Leviathan.
Antero Resources Corp. (NYSE:AR) is an American company with over 290 miles of gas pipelines, as well as an underground exploration business. Although the stock has been trending down (you can pick it up on the cheap), Antero predicts 25% production growth this year.
Cabot Oil & Gas Corp. (NYSE:COG) is a company that produces its own natural gas and buys gas for resale. It has shown rising revenues and can be bought at around $22 a share.
WPX Energy (NYSE:WPX) is an American company that uses different methods to extract the gas. They extract from shale instead of the more standard well drilling method. The stock climbed in 2016 and has plateaued so far this year as their cash flows have been smaller than what investors would like to see. Look for cash flow to rise before pulling the trigger on this one.
The makeup of BHP Billiton Ltd. (NYSE:BBL) is natural gas and the mining of metals. On the gas side, it extracts and develops natural gas. A huge rise from $18 to $40 per share in 2016 and a healthy outlook on this year make this a potentially huge play. This is really the type of company we want to look at, as natural gas prices going up helps it a lot, while its diversification means you don't have to worry too much if natural gas does fall.
Cheniere Energy (NYSEMKT:LNG) is about to break out. In the last quarter of 2016, this company generated half a billion in natural gas revenues. The year before they just had $2 million. Based in Texas, this company is increasing revenue while cutting down on their losses at the same time and is expected to reach profitability at the end of 2017.
When investing in these energy companies, as a fail-safe to the price of natural gas falling, all these companies have other streams of income to juxtapose any price drop. Because you can hedge your losses, we think this is one of the best ways to invest in natural gas.
Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.