After years of trading in a tight boxed range, natural gas has taken off, and with the U.S. a top supplier, hot summers and cold winters can add up to big gains for some of the top stocks in the energy sector. The U.S. Energy Information Administration (EIA) reported that U.S. natural gas stocks increased by 34 billion cubic feet for the week ending July 15. Analysts were expecting a storage addition in a range of 32 billion to 44 billion cubic feet.
With the weather expected to stay hot, especially in Texas and across the Southwest, demand for electricity is big, and many top utilities are using clean-burning natural gas. We screened our own 24/7 Wall St. database for energy stock levered to natural gas and found four that make sense to look at.
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 Wall Street consensus price objective is $66.03. Shares closed most recently at $54.17.
The company almost has been more than in half from highs printed in 2014. CONSOL Energy Inc. (NYSE: CNX) is one of the largest independent natural gas exploration, development and production companies, with operations centered in the major shale formations of the Appalachian basin.
The company deploys an organic growth strategy focused on rapidly developing its resource base. Its premium coal assets are sold to electricity generators and steelmakers, both domestically and internationally. CONSOL also provides energy services, including coal terminal services, water services and land resource management services.
Top analysts have cited company management when noting that operations in the Marcellus continue to become more efficient as CONSOL drills longer laterals, more stages and uses more proppant.
CONSOL investors are paid a 0.9% dividend. The Wall Street consensus price target is $17.62. Shares closed Thursday at $16.96.