Investing in natural gas stocks has become an increasingly popular way to diversify one’s portfolio and make a good return on investment. With the global demand for energy rising, natural gas stocks offer investors the opportunity to capitalize on the growing market.
For the uninitiated, natural gas is an energy source found deep within the Earth’s surface and consists primarily of methane. It is one of the cleanest burning fossil fuels, producing fewer emissions than other energy sources such as coal and oil. As a result, it is becoming an increasingly popular fuel source for electricity generation, heating, and cooking.
Natural gas has several advantages over other forms of energy. It produces fewer greenhouse gases than coal or oil when burned, making it a more environmentally friendly option for energy generation. Additionally, prices for natural gas tend to be more stable than other forms of energy due to its strong supply chains and relatively short production cycle times. These factors make investing in natural gas stocks an attractive option for those looking for long-term investments with steady returns. With that, here are three natural gas stocks to watch in the stock market today.
Natural Gas Stocks To Watch Right Now
- Kinder Morgan Inc. (NYSE: KMI)
- DCP Midstream LP (NYSE: DCP)
- Chesapeake Energy Corporation (NASDAQ: CHK)
Kinder Morgan (KMI Stock)
Leading us off today is Kinder Morgan (KMI). In brief, Kinder Morgan is a leading energy infrastructure company that operates pipelines, terminals, and other energy assets across North America. The company is involved in the transportation and storage of oil, natural gas, and other energy products. For a sense of scale, KMI is one of the largest energy infrastructure companies in the world.
In early December, Kinder Morgan announced its 2023 financial outlook. Diving in, the company said it expects to generate a net income of $1.12 per share in 2023, which is the same as its forecast for 2022. They also expect to generate $2.13 in DCF per share, which is a 1% decrease from their forecast for 2022 due to an increase in interest expense. Also, KMI expects to generate $7.7 billion in Adjusted EBITDA in 2023, which is a 3% increase from their forecast for 2022, and a total segment EBDA of $8.2 billion, which is a 5% increase from their forecast for 2022.
Looking at the past six months of trading action, shares of KMI stock have rebounded 9.05%. On Thursday morning, Kinder Morgan stock opened lower by 0.88% and is currently trading at $18.08 a share.
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DCP Midstream (DCP Stock)
Next, we have DCP Midstream (DCP). For starters, DCP Midstream is a leading midstream energy company that owns, operates, and develops natural gas, natural gas liquids, and crude oil infrastructure assets. It serves customers across the United States through its pipelines, processing plants, and storage facilities.
Back in November, DCP Midstream reported its third-quarter 2022 financial results. Specifically, the company reported Q3 2022 earnings of $1.50 per share and revenue of $4.3 billion. These revenue figures reflect a 52.8% increase versus the same period, in 2021. What’s more, DCP Midstream reported that in the third quarter, the company reduced its debt by over $300 million and over $600 million year to date. Additionally, DCP also received an upgrade from S&P to investment grade and had its rating outlook updated to positive from stable by Moody’s.
Over the last six months, DCP Midstream stock has gained by 36.61%. Meanwhile, on Thursday morning, shares of DCP stock are trading modestly higher by 0.18% at $38.58 a share.
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Chesapeake Energy (CHK Stock)
Last but not least, Chesapeake Energy is an American oil and natural gas exploration and production company headquartered in Oklahoma City, Oklahoma. It is one of the largest independent natural gas exploration and production companies in the United States, with operations across the country in states such as Texas, Oklahoma, and Pennsylvania.
In November, CHK reported its 3rd quarter 2022 financial results. In detail, the company announced Q3 2022 earnings of $5.06 per share along with revenue of $3.2 billion. What’s more, CHK reported that its revenue increased by 255.3% compared to the same period a year prior.
Moving along, over the last six months, CHK stock is up another 13.56%. While, during Thursday morning’s trading session, Chesapeake Energy stock is trading lower off the open by 2.81% at $86.78 a share.
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