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U.S. natural gas prices are often volatile, depending on weather, production and export demand.
The US. has seen rapid supply growth from major shale basins, keeping long-term pricing competitive.
The top natural gas stocks to buy now include SM Energy, Riley Exploration and Permian Resources.
Natural gas remains one of the most closely followed energy commodities in global markets. It heats homes during winter cold spells, supports a growing liquefied natural gas (LNG) export market, and increasingly supplies electricity to power energy-intensive infrastructure such as data centers. For investors, the right natural gas stocks can offer income, cyclical upside tied to commodity prices, and participation in long term shifts in global energy supply.
Below, we examine and rank leading natural gas stocks using a blend of Zacks Rank signals, Style Scores, and core fundamental metrics to highlight companies that may offer durable opportunities for patient investors.
This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months. How good is it? See rankings and related performance below.
The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank.
An industry with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's.
The industry with the best average Zacks Rank would be considered the top industry (1 out of 265), which would place it in the top 1% of Zacks Ranked Industries. The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%.
The Zacks Sector Rank assigns a rating to each of the 16 Sectors based on their average Zacks Rank.
A sector with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's.
The sector with the best average Zacks Rank would be considered the top sector (1 out of 16), which would place it in the top 1% of Zacks Ranked Sectors. The sector with the worst average Zacks Rank (16 out of 16) would place in the bottom 1%.
The Style Scores are a complementary set of indicators to use alongside the Zacks Rank. It allows the user to better focus on the stocks that are the best fit for his or her personal trading style.
The scores are based on the trading styles of Value, Growth, and Momentum. There's also a VGM Score ('V' for Value, 'G' for Growth and 'M' for Momentum), which combines the weighted average of the individual style scores into one score.
Value ScoreA
Growth ScoreA
Momentum ScoreA
VGM ScoreA
Within each Score, stocks are graded into five groups: A, B, C, D and F. As you might remember from your school days, an A, is better than a B; a B is better than a C; a C is better than a D; and a D is better than an F.
As an investor, you want to buy stocks with the highest probability of success. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style.
Zacks Earnings ESP (Expected Surprise Prediction) looks to find companies that have recently seen positive earnings estimate revision activity. The idea is that more recent information is, generally speaking, more accurate and can be a better predictor of the future, which can give investors an advantage in earnings season.
The technique has proven to be very useful for finding positive surprises. In fact, when combining a Zacks Rank #3 or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time, while they also saw 28.3% annual returns on average, according to our 10 year backtest.
Permian Resources is a Delaware Basin-focused oil and gas company with substantial exposure to natural gas and NGLs alongside its oil production. The company continues to benefit from strong production growth, supported by an expanding drilling inventory that ensures long-term output visibility. Operational efficiency has improved, with reduced drilling costs enhancing margins even in moderate oil price environments. Its shareholder-friendly policies also add to its appeal.
Potential Risks
Results remain sensitive to oil and gas prices, and frequent acquisitions add integration risk. If service costs rise or takeaways tighten, free cash flow could compress, and the stock’s rebound could fade.
Forecast
A Zacks Rank #1 (Strong Buy) with Scores of C for Value and Growth, and B for Momentum implies revisions and trading action are aligned. The Price, Consensus & EPS Surprise chart shows 2026-2027 EPS estimates drifting lower into early 2026 before a sharper rebound, with mostly positive recent surprises.
This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months. How good is it? See rankings and related performance below.
The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank.
An industry with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's.
The industry with the best average Zacks Rank would be considered the top industry (1 out of 265), which would place it in the top 1% of Zacks Ranked Industries. The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%.
The Zacks Sector Rank assigns a rating to each of the 16 Sectors based on their average Zacks Rank.
A sector with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's.
The sector with the best average Zacks Rank would be considered the top sector (1 out of 16), which would place it in the top 1% of Zacks Ranked Sectors. The sector with the worst average Zacks Rank (16 out of 16) would place in the bottom 1%.
The Style Scores are a complementary set of indicators to use alongside the Zacks Rank. It allows the user to better focus on the stocks that are the best fit for his or her personal trading style.
The scores are based on the trading styles of Value, Growth, and Momentum. There's also a VGM Score ('V' for Value, 'G' for Growth and 'M' for Momentum), which combines the weighted average of the individual style scores into one score.
Value ScoreA
Growth ScoreA
Momentum ScoreA
VGM ScoreA
Within each Score, stocks are graded into five groups: A, B, C, D and F. As you might remember from your school days, an A, is better than a B; a B is better than a C; a C is better than a D; and a D is better than an F.
As an investor, you want to buy stocks with the highest probability of success. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style.
Zacks Earnings ESP (Expected Surprise Prediction) looks to find companies that have recently seen positive earnings estimate revision activity. The idea is that more recent information is, generally speaking, more accurate and can be a better predictor of the future, which can give investors an advantage in earnings season.
The technique has proven to be very useful for finding positive surprises. In fact, when combining a Zacks Rank #3 or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time, while they also saw 28.3% annual returns on average, according to our 10 year backtest.
SM Energy is an onshore E&P with natural gas exposure in the Permian and South Texas. In Q4 2025, the company generated record production and robust operating cash flow, with higher adjusted EBITDAX even as oil benchmarks weakened. Management also emphasizes capital discipline and balance-sheet durability, aiming to fund development with cash flow while returning capital to shareholders.
Potential Risks
Integration and regulatory timing risk could weigh on sentiment, while greater scale can amplify exposure to basin differentials and service-cost inflation. With an F Momentum score, the stock can react quickly to estimate downticks.
Forecast
A Zacks Rank #1 with Scores of A for Value, D for Growth, and F for Momentum indicates revisions are favorable even if the trend is choppy. The company’s chart shows 2026 EPS consensus sliding into early 2026, then rebounding sharply as the price spikes.
This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months. How good is it? See rankings and related performance below.
The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank.
An industry with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's.
The industry with the best average Zacks Rank would be considered the top industry (1 out of 265), which would place it in the top 1% of Zacks Ranked Industries. The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%.
The Zacks Sector Rank assigns a rating to each of the 16 Sectors based on their average Zacks Rank.
A sector with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's.
The sector with the best average Zacks Rank would be considered the top sector (1 out of 16), which would place it in the top 1% of Zacks Ranked Sectors. The sector with the worst average Zacks Rank (16 out of 16) would place in the bottom 1%.
The Style Scores are a complementary set of indicators to use alongside the Zacks Rank. It allows the user to better focus on the stocks that are the best fit for his or her personal trading style.
The scores are based on the trading styles of Value, Growth, and Momentum. There's also a VGM Score ('V' for Value, 'G' for Growth and 'M' for Momentum), which combines the weighted average of the individual style scores into one score.
Value ScoreA
Growth ScoreA
Momentum ScoreA
VGM ScoreA
Within each Score, stocks are graded into five groups: A, B, C, D and F. As you might remember from your school days, an A, is better than a B; a B is better than a C; a C is better than a D; and a D is better than an F.
As an investor, you want to buy stocks with the highest probability of success. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style.
Zacks Earnings ESP (Expected Surprise Prediction) looks to find companies that have recently seen positive earnings estimate revision activity. The idea is that more recent information is, generally speaking, more accurate and can be a better predictor of the future, which can give investors an advantage in earnings season.
The technique has proven to be very useful for finding positive surprises. In fact, when combining a Zacks Rank #3 or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time, while they also saw 28.3% annual returns on average, according to our 10 year backtest.
Chord Energy is a Williston Basin producer whose barrels include significant associated natural gas and NGLs. The company’s scale in the Bakken shale supports infrastructure leverage and steady cash generation even when gas realizations are pressured. It also follows a shareholder-return model that prioritizes free-cash-flow generation and capital discipline.
Potential Risks
Bakken pricing can be volatile, and harsh-weather or downtime events can disrupt volumes and costs. If oil weakens, associated-gas volumes won’t fully offset the hit to cash flow, and share buyback or dividend capacity could narrow.
Forecast
A Zacks Rank #1 with Scores of A for Value, F for Growth, and B for Momentum suggests revisions are positive and price action supportive despite slower expected growth. The chart shows 2026 EPS consensus stepping lower before a rebound, a recent price jump alongside positive earnings surprises.
This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months. How good is it? See rankings and related performance below.
The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank.
An industry with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's.
The industry with the best average Zacks Rank would be considered the top industry (1 out of 265), which would place it in the top 1% of Zacks Ranked Industries. The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%.
The Zacks Sector Rank assigns a rating to each of the 16 Sectors based on their average Zacks Rank.
A sector with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's.
The sector with the best average Zacks Rank would be considered the top sector (1 out of 16), which would place it in the top 1% of Zacks Ranked Sectors. The sector with the worst average Zacks Rank (16 out of 16) would place in the bottom 1%.
The Style Scores are a complementary set of indicators to use alongside the Zacks Rank. It allows the user to better focus on the stocks that are the best fit for his or her personal trading style.
The scores are based on the trading styles of Value, Growth, and Momentum. There's also a VGM Score ('V' for Value, 'G' for Growth and 'M' for Momentum), which combines the weighted average of the individual style scores into one score.
Value ScoreA
Growth ScoreA
Momentum ScoreA
VGM ScoreA
Within each Score, stocks are graded into five groups: A, B, C, D and F. As you might remember from your school days, an A, is better than a B; a B is better than a C; a C is better than a D; and a D is better than an F.
As an investor, you want to buy stocks with the highest probability of success. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style.
Zacks Earnings ESP (Expected Surprise Prediction) looks to find companies that have recently seen positive earnings estimate revision activity. The idea is that more recent information is, generally speaking, more accurate and can be a better predictor of the future, which can give investors an advantage in earnings season.
The technique has proven to be very useful for finding positive surprises. In fact, when combining a Zacks Rank #3 or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time, while they also saw 28.3% annual returns on average, according to our 10 year backtest.
Riley Exploration Permian is a small Permian Basin producer with meaningful associated natural-gas exposure alongside its oil production. In Q4 2025, it increased production, reduced debt, and advanced strategic initiatives, including monetizing midstream interests that can improve liquidity. A large cash dividend adds discipline to capital allocation, and 2026 guidance points to steady activity levels.
Potential Risks
As a smaller operator, REPX faces higher volatility from single-basin exposure, operational challenges, and thinner trading liquidity. Sustained weakness in gas and NGL pricing, or higher service costs, would pressure free cash flow.
Forecast
A Zacks Rank #1 with a Value of A points to favorable revisions, but Scores of D for Growth and F for Momentum suggest estimate revisions are supportive even if the price trend has lagged. The company’s chart shows 2026 EPS estimates dipping before a late rebound and mixed earnings surprises.
This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months. How good is it? See rankings and related performance below.
The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank.
An industry with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's.
The industry with the best average Zacks Rank would be considered the top industry (1 out of 265), which would place it in the top 1% of Zacks Ranked Industries. The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%.
The Zacks Sector Rank assigns a rating to each of the 16 Sectors based on their average Zacks Rank.
A sector with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's.
The sector with the best average Zacks Rank would be considered the top sector (1 out of 16), which would place it in the top 1% of Zacks Ranked Sectors. The sector with the worst average Zacks Rank (16 out of 16) would place in the bottom 1%.
The Style Scores are a complementary set of indicators to use alongside the Zacks Rank. It allows the user to better focus on the stocks that are the best fit for his or her personal trading style.
The scores are based on the trading styles of Value, Growth, and Momentum. There's also a VGM Score ('V' for Value, 'G' for Growth and 'M' for Momentum), which combines the weighted average of the individual style scores into one score.
Value ScoreA
Growth ScoreA
Momentum ScoreA
VGM ScoreA
Within each Score, stocks are graded into five groups: A, B, C, D and F. As you might remember from your school days, an A, is better than a B; a B is better than a C; a C is better than a D; and a D is better than an F.
As an investor, you want to buy stocks with the highest probability of success. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style.
Zacks Earnings ESP (Expected Surprise Prediction) looks to find companies that have recently seen positive earnings estimate revision activity. The idea is that more recent information is, generally speaking, more accurate and can be a better predictor of the future, which can give investors an advantage in earnings season.
The technique has proven to be very useful for finding positive surprises. In fact, when combining a Zacks Rank #3 or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time, while they also saw 28.3% annual returns on average, according to our 10 year backtest.
Magnolia Oil & Gas is an independent upstream operator engaged in the exploration, development, and production of natural gas, crude oil, and natural gas liquids. The company’s core appeal is its solid operational execution, with production rising strongly and costs trending lower, supporting solid margins and returns. Shareholder returns via dividends and buybacks are funded by free cash flow, supporting per-share value through the cycle.
Potential Risks
With a concentrated asset base, weakness in gas, NGL, or local differentials can pressure cash flow. Cost inflation or underperforming wells could affect the company’s margin.
Forecast
A Zacks Rank #1 with Scores of C for Value, D for Growth, and A for Momentum signals improving revisions. The company’s chart shows 2026 EPS estimates easing for most of the period before a sharp late upswing, with mostly positive earnings surprises.
The Zacks Rank is a proprietary stock-rating model that uses trends in earnings estimate revisions and earnings-per-share (EPS) surprises to classify stocks into five groups: #1 (Strong Buy), #2 (Buy), #3 (Hold), #4 (Sell) and #5 (Strong Sell). The Zacks Rank is calculated through four primary factors related to earnings estimates: analysts' consensus on earnings estimate revisions, the magnitude of revision change, the upside potential and estimate surprise (or the degree in which earnings per share deviated from the previous quarter).
Zacks builds the data from 3,000 analysts at over 150 different brokerage firms. The average yearly gain for Zacks Rank #1 (Strong Buy) stocks is +23.62% per year from January, 1988, through June 2, 2025.
Selections for Best Natural Gas Stocks are based on the current top ranking stocks based on Zacks Indicator Score, Style Scores and fundamentals. All stocks have a daily trading volume of at least 100,000 shares and have a stock price of at least $5. All information is current as of market open, April 28, 2026.
Natural Gas Stock Market Overview and Forecast
U.S. natural gas prices have historically been volatile, responding quickly to changes in weather, production levels, and export demand. According to the U.S. Energy Information Administration (EIA), rapid supply growth from major shale basins such as the Marcellus and Permian has helped keep long-term pricing competitive. At the same time, the rise of LNG exports has introduced a powerful structural demand driver, increasingly linking U.S. prices to global energy markets.
The benchmark Henry Hub natural gas price, tracked by Trading Economics, has moved through pronounced cycles over the past decade. Periods of oversupply have pressured prices, while cold winters, infrastructure constraints, or export disruptions have triggered sharp rallies.
LNG export capacity continues to expand, positioning the United States as a key supplier to Europe and Asia. Among the companies shaping this trend are:
Cheniere Energy (LNG - Free Report) – The largest U.S. LNG exporter, backed by long-term international contracts.
Sempra (SRE - Free Report) – Which is developing LNG export terminals through its Sempra Infrastructure platform.
Meanwhile, major producers have adjusted drilling activity in response to price signals, helping moderate supply during downturns. Key players include:
EQT Corporation (EQT - Free Report) – The largest U.S. natural gas producer.
Antero Resources (AR - Free Report) – Leading Appalachian Basin producer with meaningful natural gas liquids exposure.
Comstock Resources (CRK - Free Report) – Which is heavily leveraged to Haynesville gas near Gulf Coast LNG facilities.
Is now a good time to invest in natural gas stocks?
Natural gas investing often depends more on timing than many other sectors. Periods of low prices can create opportunities in financially disciplined producers with low production costs and manageable debt.
Investors should monitor several key indicators:
Storage levels (EIA weekly reports).
Rig counts and production trends.
LNG export volumes.
Seasonal weather forecasts.
When production growth slows and export demand strengthens, natural gas equities have historically shown the ability to outperform.
General Questions about Natural Gas Stocks
What are the benefits of buying natural gas stocks?
Exposure to a critical fuel source. Gas remains essential for electricity generation and industrial use.
LNG export growth. U.S. exports have structurally increased global demand.
Dividend potential. Midstream operators such as Kinder Morgan (KMI) and Williams Companies (WMB) offer income-focused exposure.
Cyclical upside. Gas producers can see rapid earnings expansion when prices spike.
What are the risks of buying natural gas stocks?
Commodity price volatility.
Weather dependency (mild winters hurt demand).
Regulatory and environmental pressures.
High leverage in some exploration and production companies.
Natural gas producer stocks vs. pipeline stocks: which is better?
Producers (EQT, AR, CRK): Higher upside when prices rise, but more volatile.
Midstream/pipeline (KMI, WMB): Fee-based contracts provide steadier cash flow and dividends.
Income-focused investors often prefer pipelines. Growth-oriented investors may favor producers.
What’s the outlook for natural gas stocks if prices rise?
Producers typically see expanding margins and cash flow during price rallies. Companies with low breakeven costs, like EQT, tend to benefit most. Pipeline operators may see incremental volume growth but are less sensitive to price spikes.
How do natural gas stock prices correlate with commodity prices?
Producer stocks generally move in tandem with natural gas prices. However, hedging programs can mute the impact. Midstream stocks often correlate more with volume growth than spot prices.
Natural gas stocks vs natural gas ETFs
Individual stocks offer targeted exposure and dividend potential. ETFs provide diversification. Examples include:
United States Natural Gas Fund (UNG - Free Report) – Tracks natural gas futures.
Alerian MLP ETF (AMLP) – Focused on midstream MLPs.
ETFs reduce company-specific risk but may dilute upside.
What factors should I consider before buying natural gas stocks?
How important is free cash flow for natural gas companies?
Free cash flow is critical. Companies that generate excess cash during strong pricing cycles can:
Pay dividends.
Reduce debt.
Repurchase shares.
For example, Williams Companies emphasizes steady distributable cash flow tied to long-term contracts.
What debt levels are considered risky for gas producers?
High leverage magnifies downside risk when prices fall. Investors often monitor:
Net debt-to-EBITDA ratios.
Interest coverage.
Debt maturity schedules.
Producers operating near 3.0x–4.0x leverage can face pressure during downturns.
How do hedging strategies affect natural gas stock performance?
Hedging locks in future prices. This reduces volatility but may limit upside during rallies. Companies that hedge aggressively may lag during sharp commodity spikes.
Strategy and Portfolio Building with Natural Gas Stocks
Are natural gas stocks suitable for beginners?
They can be — if investors understand commodity cycles. Midstream dividend stocks may be more beginner-friendly than highly leveraged producers.
What natural gas stocks are good for long-term investing?
Long-term candidates often include:
Cheniere Energy (LNG) – Long-term LNG export contracts.
Williams Companies (WMB - Free Report) – Extensive U.S. pipeline network.
Kinder Morgan (KMI - Free Report) – Diversified gas infrastructure footprint.
These companies benefit from structural LNG demand growth rather than short-term weather swings.
How do natural gas stocks fit into an energy portfolio?
Natural gas can balance oil-heavy portfolios. Gas demand tends to be driven more by electricity and heating than transportation. Combining oil majors with gas-focused names adds diversification across commodities.
What are common mistakes investors make with natural gas stocks?
Buying after price spikes.
Ignoring balance sheet risk.
Overestimating short-term weather events.
Confusing LNG infrastructure stocks with upstream producers.
Should investors time the natural gas market or dollar-cost average?
Because natural gas is highly cyclical, dollar-cost averaging can reduce timing risk. However, experienced investors sometimes increase exposure during periods of low prices and production cutbacks.
What are the alternatives if you’re bearish on natural gas prices?
Focus on integrated majors with diversified revenue streams.
Invest in midstream companies less sensitive to price swings.
Allocate to renewable energy or utility stocks instead.
Bottom Line
The best natural gas stocks combine disciplined balance sheets, strong free cash flow, and exposure to long-term LNG export growth. Companies like EQT, Cheniere Energy, and Williams Companies illustrate different ways to gain exposure — from pure production leverage to fee-based infrastructure income.
As always, natural gas investing requires attention to commodity cycles, storage data, and global demand trends. For investors willing to tolerate volatility, the sector can offer both income and upside potential in an evolving global energy market.
View the Zacks #1 Rank List
Strong Buy 
