Natural gas stocks refer to stocks of companies involved in the exploration, production, and distribution of natural gas. Natural gas is a fossil fuel that is used for heating and generating electricity. This makes it an essential component of the global energy mix. As such, natural gas stocks are considered an important part of many investment portfolios, particularly those focused on energy and utilities.
The performance of natural gas stocks is closely tied to the price and supply of natural gas. Which is impacted by factors such as weather patterns, demand from the electricity sector, and government regulations. Geopolitical factors such as production cuts, supply disruptions, and import/export policies can also impact the natural gas market.
Investing in natural gas stocks requires a thorough understanding of the individual company’s financials, production capabilities, and market position. It’s important to evaluate factors such as reserves, drilling costs, and transportation capabilities. Additionally, investing in natural gas stocks can be risky due to the potential for market volatility and geopolitical factors to impact the sector as a whole. Taking this into consideration, here are two natural gas stocks to check out in the stock market this week.
Natural Gas Stocks To Buy [Or Avoid] In 2023
Kinder Morgan (KMI Stock)
First, Kinder Morgan Inc. (KMI) is an energy infrastructure company. In brief, the company owns and operates pipelines, terminals, and other assets used for transporting and storing natural gas, crude oil, and other energy products. The company operates primarily in North America and is one of the largest energy infrastructure companies in the region.
Back in January, Kinder Morgan announced its fourth quarter 2022 financial results. In the report, the company notched in earnings of $0.31 per share, along with revenue of $4.6 billion. This is in comparison to analysts’ consensus estimates for Q4 2022 which were earnings of $0.31 per share, and revenue estimates of $4.9 billion. What’s more, KMI currently offers its stockholders an annual dividend yield of 6.61%.
During the last trading week, shares of KMI stock have rebounded by 2.88%. Meanwhile, as of this past Friday’s closing bell, Kinder Morgan stock is trading at $16.79 a share, ahead of this week’s trading action.
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EQT Corp. (EQT Stock)
Next, EQT Corporation (EQT) is a natural gas producer that operates in the Appalachian Basin. For context, the Appalachian Basin is one of the largest natural gas-producing regions in the United States. The company is known for its low-cost operations and efficient drilling techniques. This allows it to produce natural gas at a competitive price.
Last month, EQT Corporation reported its results for the fourth quarter of 2022. In detail, the natural gas company announced Q4 2022 earnings of $0.42 per share and revenue of $3.5 billion. This was versus Wall Street’s consensus estimates for the quarter which were an EPS of $0.43 and revenue of $2.3 billion. Moreover, EQT also offers its shareholders an annual dividend yield of 1.96%.
Looking at the last week of trading action, shares of EQT stock have jumped by 3.59%. Meanwhile, as of the end of the day this past Friday, EQT stock closed the day up 3.49% at $30.56 a share.
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