Rising EPS & Strong Natural Gas Prices: 3 Stocks to Buy Now

Industry Overview - Natural gas prices have surged more than twofold over the past year and are expected to maintain momentum into 2025 due to cold weather, supply constraints, and strong global demand [1] - The U.S. has become the world's largest LNG supplier, with exports averaging 16 billion cubic feet per day, contributing to price strength [5] - Europe is facing a severe supply crunch, with gas storage levels at 40% full compared to 60% in 2024, necessitating higher LNG imports throughout 2025 [4] Supply and Demand Dynamics - Natural gas markets tightened in 2024 due to severe winter conditions and limited production growth, with working gas stocks 5% below the five-year average by late February 2025 [3] - U.S. natural gas production rebounded to 105 billion cubic feet per day by late February 2025, but producers are cautious about ramping up output, maintaining capital discipline [7] Company Opportunities - Antero Resources, Coterra Energy, and Gulfport Energy are well-positioned to benefit from higher natural gas prices and increased drilling activity, with upward revisions to their 2025 EPS estimates [2] - Antero Resources has a projected 1,381% year-over-year growth in 2025 EPS, with a recent 14.3% increase in estimates [11] - Coterra Energy's expected EPS growth rate for three to five years is 15.5%, with an 18.6% increase in 2025 EPS estimates [13] - Gulfport Energy's 2025 EPS indicates a 42.4% year-over-year growth, with a recent 6.4% increase in estimates [15] Market Outlook - The EIA expects U.S. inventories to be 4% below the five-year average at the end of the withdrawal season in March, supporting continued price strength [8] - Natural gas prices are anticipated to remain close to $4 per MMBtu in the near term due to rising summer electricity demand and sustained LNG exports [8]