Energy Business

Natural Gas Prices Are Skyrocketing: Buy These 5 Sizzling Stocks Now

With more than 125 years of experience, EQT continues to be a leader in the use of advanced horizontal drilling technology. This technology is designed to minimize the potential impact of drilling-related activities and reduce the overall environmental footprint.

The $34 Truist Securities price target on Buy-rated EQT stock compares with the $29.00 consensus target. The stock dropped almost 5% on Monday to close at $19.90 a share.

Ovintiv

This off-the-radar name has some undeniable positive prospects. Ovintiv Inc. (NYSE: OVV) engages in the exploration, development, production and marketing of natural gas, oil, and NGLs in the United States and Canada.

The company’s principal assets are in the Permian in west Texas, Anadarko in west-central Oklahoma and Montney in northeast British Columbia and northwest Alberta. Its other upstream assets are in the Eagle Ford in south Texas, Bakken in North Dakota, Uinta in central Utah, Duvernay in west central Alberta, Horn River in northeast British Columbia, and Wheatland in southern Alberta. The company was formerly known as Encana.

The dividend yield is 1.47%. Morgan Stanley has an Overweight rating with a $54 price target. The much lower $40.45 consensus target on Ovintiv stock also compares with Monday’s $38.05 closing print.

Targa Resources

This top energy midstream company is on the Goldman Sachs Conviction List of top stock picks. Targa Resources Corp (NYSE: TRGP) is a leading provider of midstream services and one of the largest independent midstream energy companies in North America. Targa owns, operates, acquires and develops a diversified portfolio of complementary midstream energy assets.

The company is primarily engaged in the business of gathering, compressing, treating, processing and selling natural gas; storing, fractionating, treating, transporting and selling NGLs and related products, including services to liquefied petroleum gas exporters; gathering, storing and terminaling crude oil; storing, terminaling and selling refined petroleum products.

Targa Resources has one of the premier asset positions in the Permian Basin. With solid management, a strong balance sheet and attractive exposure to some of the most attractive U.S. energy basins, it remains a top pick across Wall Street.

Investors in Targa Resources stock receive just a 0.75% dividend. BofA Securities set a $62 target price on the Buy-rated stock. The consensus target is $54.55, and shares closed at $53.02 on Monday.


These five top energy picks are perhaps off the radar for some investors but focused on natural gas, and sales offer outstanding growth potential and reasonable entry points compared to some other companies in the sector. Plus, with the natural gas prices soaring, many can hedge forward production at levels not seen in years.