As the world is turning more to oil alternatives, the possibility of global demand for liquefied natural gas (LNG) doubling by 2040 could result in companies involved in natural gas increasing their revenue, writes Q.ai for Forbes.
There are many companies that are involved in natural gas processing, divided into three distinct categories: upstream, midstream, and downstream. All of them create many opportunities for investing in the natural gas and energy field.
Here are 7 stocks investors should consider.
Kinder Morgan (KMI) controls the largest natural gas transmission network in the United States. Considering that natural gas travels through pipelines, the infrastructure in this field is crucial. Many analysts believe that with LNG exports on the rise, Kinder Morgan will reap the benefits for a long time.
The company is at $17.04. Its one-year target price is $20.49.
Cheniere Energy (LNG) is the biggest producer of LNG in the nation. It was the first company to be approved for exporting LNG, and it has continued to enjoy the perks of being the industry first. With the European energy crisis still ongoing, the company is expected to generate more revenue moving forward.
The company’s stock is currently at $171.67. It has a one-year target of $193.68.
EQT Corporation (EQT) is a natural gas producer that is on track to make record profits in 2023 thanks to high energy prices. As a pure-play Appalachian explorer, EQT can capitalize on the growing prices of natural gas with its upstream operations.
The company’s stock currently stands at $43.53 with a one-year target of $63.26.
Other stocks to consider include Shell Plc (SHEL), DCP Midstream, LP (DCP), Coterra Energy (CTRA), and 7. Range Resources Corporation (RRC).
In addition to buying public oil company stock, there are other options for accredited investors. According to Fred Hubler, CEO/Chief Wealth Strategist at Creative Capital Wealth Management Group and forbes.com contributor, accredited investors have additional options. “In the oil space,” according to Hubler, “accredited investors can invest in oil and gas projects that give them a large first-year reduction of taxable income as well as other oil-based investments pay income that is offset by expenses, so the income ends up being tax-free.”
“Oil and gas direct investments (not via public stocks) have unique properties not enjoyed by other direct investments,” says Hubler.
Read more about these stocks in Forbes.
Want to know if you’re on the right path financially? CCWMG’S Second Opinion Service (SOS) is a no-obligation review with one of Creative Capital Wealth Management Group‘s Wealth Strategists.
It’s simply not possible to get a reliable second opinion from the same person who gave you the first one. Click here to schedule an SOS meeting with Fred and his team.