Utility Gas Inflation Is Soaring. This Stock Is a Clear Winner

Core Insights - The U.S. Consumer Price Index data for December indicates a year-over-year inflation rate of 2.7%, with utility gas services experiencing a significant increase of 10.8% [2][6] - The surge in utility gas prices is attributed to global demand for liquefied natural gas (LNG), limited domestic supply, and increased production costs [3][4] - Atmos Energy, the largest natural gas-only utility in the U.S., has seen its stock gain 17% over the past year, outperforming the S&P 500 [6] Industry Overview - Utility gas prices are rising globally, with the European and UK benchmarks increasing by 25% and 26% respectively, while U.S. LNG futures have surged 17% amid extreme winter conditions [3][4] - The demand for LNG is further driven by the needs of AI data centers, which currently consume over 1 billion cubic feet per day of natural gas, with forecasts suggesting this could rise to between 4 Bcf/d and 8 Bcf/d by 2030 [4] Company Analysis - Atmos Energy is positioned to benefit from the rising utility gas prices, as indicated by its stock performance and potential dividend growth [6] - The company is likely to profit from the supply-demand gap in the natural gas market, making it an attractive option for investors [5]