We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Data Center Buildout Boosts Natural Gas Use: WMB, AR & KMI to Gain?
Read MoreHide Full Article
Key Takeaways
Antero Resources is positioned to capitalize on rising natural gas demand fueled by data center energy needs.
WMB transports roughly 33% of U.S. natural gas production through its extensive pipeline network.
KMI carries roughly 40% of natural gas produced in the domestic market through its huge pipeline network.
The world is gradually witnessing a widespread adoption of artificial intelligence (AI) across all businesses, which is driving a significant increase in demand for data centers. These data centers house sophisticated servers and supporting infrastructure required by AI to process data and train models. To support this immense computing power and intense workload, data centers are in increasing need of more electricity, which is raising the demand for natural gas.
This is because the electricity generated from natural-gas-fired plants is cleaner. With the rising demand for natural gas, the outlook becomes bright for companies involved in exploring, producing and transporting the commodity from the shale plays to the end market. Three energy players that are well-poised to grow are Antero Resources (AR - Free Report) , Williams (WMB - Free Report) and Kinder Morgan Inc. (KMI - Free Report) .
3 Energy Stocks to Benefit: AR, WMB & KMI
Antero Resources is a leading explorer and producer of natural gas in the United States. In the Appalachian Basin, among the prolific plays, the company has a strong footprint, brightening the production outlook. Thus, being a prominent producer in the United States, AR is well-positioned to capitalize on the data center-led mounting energy demand. AR currently carries a Zacks Rank #3 (Hold).
Williams is a midstream energy giant with a huge pipeline network, involved in transporting roughly 33% of the natural gas produced in the domestic market. Thus, the outlook for #3 Ranked WMB also remains bright. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Kinder Morgan is also a midstream energy major. Employing its huge pipeline network, KMI, with a Zacks Rank of 3, is responsible for carrying roughly 40% of the natural gas being produced in the domestic market.
View the Zacks #1 Rank List
Image: Bigstock
Data Center Buildout Boosts Natural Gas Use: WMB, AR & KMI to Gain?
Key Takeaways
The world is gradually witnessing a widespread adoption of artificial intelligence (AI) across all businesses, which is driving a significant increase in demand for data centers. These data centers house sophisticated servers and supporting infrastructure required by AI to process data and train models. To support this immense computing power and intense workload, data centers are in increasing need of more electricity, which is raising the demand for natural gas.
This is because the electricity generated from natural-gas-fired plants is cleaner. With the rising demand for natural gas, the outlook becomes bright for companies involved in exploring, producing and transporting the commodity from the shale plays to the end market. Three energy players that are well-poised to grow are Antero Resources (AR - Free Report) , Williams (WMB - Free Report) and Kinder Morgan Inc. (KMI - Free Report) .
3 Energy Stocks to Benefit: AR, WMB & KMI
Antero Resources is a leading explorer and producer of natural gas in the United States. In the Appalachian Basin, among the prolific plays, the company has a strong footprint, brightening the production outlook. Thus, being a prominent producer in the United States, AR is well-positioned to capitalize on the data center-led mounting energy demand. AR currently carries a Zacks Rank #3 (Hold).
Williams is a midstream energy giant with a huge pipeline network, involved in transporting roughly 33% of the natural gas produced in the domestic market. Thus, the outlook for #3 Ranked WMB also remains bright. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Kinder Morgan is also a midstream energy major. Employing its huge pipeline network, KMI, with a Zacks Rank of 3, is responsible for carrying roughly 40% of the natural gas being produced in the domestic market.