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3 Natural Gas Stocks Set to Thrive in This Winter's Freeze
KMIKinder Morgan(KMI) MarketBeat·2025-01-11 12:16

Industry Overview - The current winter in the United States has been particularly cold, creating a favorable environment for investing in natural gas stocks [1] - Natural gas futures are projected to increase by 12% year-over-year as of January 9, 2025, with the U.S. Energy Information Administration (EIA) forecasting LNG prices to average 3.00in2025[2][3]CompanyAnalysis:KinderMorganKinderMorganoperatesavastnetworkof79,000milesandisresponsiblefortransportingapproximately403.00 in 2025 [2][3] Company Analysis: Kinder Morgan - Kinder Morgan operates a vast network of 79,000 miles and is responsible for transporting approximately 40% of the natural gas produced in the U.S. [4] - The company is expected to see high single-digit earnings growth in 2025, driven by increasing demand for natural gas, particularly from data centers supporting AI applications [5] - Kinder Morgan has a dividend yield of 4.08% and is expected to increase its dividend by 1.7% to 1.17 per share, marking eight consecutive years of increases [6] Company Analysis: ONEOK - ONEOK operates over 50,000 miles of pipelines and specializes in natural gas and natural gas liquids [7] - The company has achieved a 14% year-over-year growth in earnings per share over the past three years, with analysts forecasting a 17% growth in the next year [8] - Recent price action suggests a buying opportunity, with a consensus price target of around $115, indicating an 11% potential stock price gain alongside a dividend yield of 3.86% [8] Company Analysis: NGL Energy Partners - NGL Energy Partners operates a network of midstream pipelines and storage facilities, managing natural gas, water pipelines, and crude oil [10] - Despite a lighter earnings report, NGL stock has risen approximately 28% since the earnings report, with analysts projecting positive earnings of 11 cents for the full year [11]