The natural gas sector consists of companies involved in exploring, producing, transporting, and distributing natural gas. These companies range from upstream producers to pipeline operators and local utility providers. Natural gas stocks offer potential investment opportunities in companies throughout the energy supply chain. The sector plays a crucial role in global energy markets, particularly in power generation and heating.
Investing in natural gas stocks can provide several potential benefits. The demand for cleaner-burning fuels has increased natural gas usage in power generation. Many natural gas companies offer steady dividends, particularly pipeline and utility operators. Infrastructure companies often have long-term contracts providing stable revenue streams. However, natural gas investments face certain challenges. Commodity prices can be volatile, affecting producer profitability. Weather patterns significantly impact seasonal demand and pricing. Regulatory changes and environmental concerns could affect future growth prospects.
When evaluating natural gas stocks, consider the company’s position in the supply chain and geographic diversification. Look at their infrastructure assets and long-term contract stability. Assess their ability to manage commodity price fluctuations. Be aware of emerging technologies that could impact natural gas demand. Consider the regulatory environment in their operating regions. With that, here are two natural gas stocks to keep an eye on in the stock market today.
Natural Gas Stocks To Watch In November 2024
- Kinder Morgan Inc. (NYSE: KMI)
- Devon Energy Corporation (NYSE: DVN)
Kinder Morgan (KMI Stock)
Leading off, Kinder Morgan Inc. (KMI) is one of North America’s largest energy infrastructure companies. They operate an extensive network of pipelines and terminals for transporting and storing natural gas, crude oil, and petroleum products.
Just last month, Kinder Morgan announced its third-quarter 2024 financial results. In detail, the company notched in Q3 2024 earnings of $0.25 per share, with revenue of $3.70 billion for the quarter. This is versus Wall Street’s consensus estimates which were earnings per share of $0.27, and revenue estimates of $3.82 billion. Additionally, the company said it expects 2024 earnings to come in at approximately $1.22 per share.
Year-to-date, shares of KMI stock have moved higher by 49.07 so far. Meanwhile, during Friday’s late afternoon trading session, Kinder Morgan stock is trading green up, 1.99%, at $26.92 a share.
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Devon Energy Corp. (DVN Stock)
Next up, Devon Energy Corporation (DVN) is an independent oil and natural gas exploration and production company. They operate primarily in U.S. onshore basins, with a significant presence in key production regions like the Delaware Basin and Anadarko Basin.
Just this week, Devon Energy announced its third-quarter 2024 financial and operating results. Getting right to it, the company reported Q3 2024 earnings of $1.10 per share, along with revenue of $4.02 billion for the quarter. This was compared to analysts’ consensus estimates for Q3 2024 which were earning estimates of $1.06 per share, on revenue of $3.77 billion.
So far in 2024, shares of DVN stock have retreated by 14.68% year-to-date. During Friday’s power hour trading session, Devon Energy stock is trading flat on the day so far, currently trading at $38.90 a share.
