Energy
5 Stocks Best Positioned for Huge Potential Spike in Natural Gas
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The gigantic move in the price of oil since the lows printed back in February have not been mirrored by the natural gas market. While West Texas Intermediate crude is up a staggering 60% or more, natural gas still trades right around the $2 level, and that’s the lowest since March of 2012. However, that may be ready to change. Thursday we covered the reasons one analyst feels natural gas will move significantly higher.
In the same research report, Jefferies natural gas analyst Jon Wolff highlights five stocks that he feels are best positioned for what the firm feels could be a huge run up in the commodity over the next year and a half. All five are rated Buy at Jefferies.
Anadarko Petroleum
This top stock is still down a stunning 52% since the highs printed in 2014. Anadarko Petroleum Corp. (NYSE: APC) operates through three segments. The Oil and Gas Exploration and Production segment explores for and produces natural gas, oil, condensate and natural gas liquids (NGLs).
The Midstream segment provides gathering, processing, treating and transportation services to Anadarko and third-party oil, natural gas and NGLs producers, as well as owns and operates gathering, processing, treating and transportation systems in the United States. The Marketing segment markets oil, natural gas and NGLs in the United States; oil and NGLs internationally; and anticipated liquefied natural gas production from Mozambique.
The company’s asset portfolio includes U.S. onshore resource plays in the Rocky Mountains, the southern United States, the Appalachian basin and Alaska; the deepwater Gulf of Mexico; and in Mozambique, Algeria, Ghana, Brazil, Colombia, Côte d’Ivoire, Kenya, Liberia, New Zealand and other countries. As of December 31, 2014, it had approximately 2.9 billion barrels of oil equivalent of proved reserves.
Anadarko investors receive a miniscule 0.38% dividend. The Jefferies price target for the stock is $56, and the Thomson/First Call consensus price objective is$58.60. Shares closed most recently at $53.20.
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