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3 Natural Gas Stocks to Gain From Rising Clean Energy Demand

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Key Takeaways

  • EIA projects 2025 natural gas prices at $3.40 per million BTU, up from $2.20 last year.
  • EQT generated $2B in free cashflows over three quarters, signaling strong financial momentum.
  • KMI's 66,000-mile pipeline network transports 40% of U.S. gas, supporting growth from clean energy demand.

To combat climate change, the world is gradually demanding cleaner fuel, which in turn is boosting demand for natural gas. The increasing number of data centers across the globe requires massive amounts of natural gas-driven electricity. Also, mounting U.S. LNG exports reflect rising demand for the commodity from different corners of the world. Thus, it seems that the business scenario of companies involved in the exploration and production of natural gas and in transporting and storing the commodity is highly favorable. 

In its latest short-term energy outlook, the U.S. Energy Information Administration (“EIA”) revealed that it expects the natural gas spot price at $3.40 per million BTU for 2025, higher than $2.20 per million BTU last year. Higher prices are likely to aid the exploration and production companies’ bottom line.

3 Stocks to Gain: EQT, KMI, AR

EQT Corporation (EQT - Free Report) is a leading producer of natural gas in the United States, having a strong presence in the Appalachian basin, one of the most prolific basins in the domestic market. In its second-quarter 2025 presentation, EQT boasted that in the three past quarters, it generated cumulated free cashflows of $2 billion. In fact, with the pricing environment of natural gas likely to remain healthy, EQT is expected to continue to generate handsome cashflows for shareholders.

Kinder Morgan Inc. (KMI - Free Report) is also well-positioned to gain since it has a massive network of pipeline spanning roughly 66,000 miles. The midstream assets are responsible for transporting approximately 40% of the natural gas produced in the domestic market. Hence, Kinder Morgan will also capitalize on growing clean energy demand.

Antero Resources (AR - Free Report) is a leading upstream energy company involved in producing natural gas in the Appalachian Basin. AR has decades of drilling inventories, reflecting a brightened production outlook and is likely to gain from rising natural gas prices.


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