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3 Natural Gas Stocks to Gain on Mounting Clean Energy Demand

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Key Takeaways

  • EQT is poised to benefit as rising gas prices support stronger cash flows in the Appalachian Basin.
  • KMI can capitalize on clean energy demand with its 78,000-mile pipeline network.
  • AR's vast drilling inventory boosts its production outlook amid higher natural gas prices.

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 revealed that it expects the natural gas spot price at $4.31 per million BTU for 2026, higher than $3.53 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. With the pricing environment of natural gas likely to remain healthy, EQT, carrying a Zacks Rank #3 (Hold), is expected to continue to generate handsome cash flows for shareholders.

Kinder Morgan Inc. (KMI - Free Report) is also well-positioned to gain since it has a massive network of pipelines spanning roughly 78,000 miles. The midstream assets are responsible for transporting a significant proportion of the natural gas produced in the domestic market. Hence, Kinder Morgan, with a Zacks Rank of 3, will also capitalize on growing clean energy demand. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Antero Resources (AR - Free Report) is a leading upstream energy company involved in producing natural gas in the Appalachian Basin. Notably, Zacks #3 Ranked 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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