In this article, we take a look at the 10 best LNG stocks to buy now.
The world’s largest producer of liquified natural gas in 2020 was Australia. The country exported 106.2 billion cubic meters of LNG in 2020. Qatar was the runner-up exporter in 2020, with an export volume of 106.1 billion cubic meters, and the United States came in third, with an export volume of 61.4 billion cubic meters.
LNG Industry Outlook
According to the Shell LNG Outlook 2021, the global demand for liquefied natural gas increased to 360 million tonnes in 2020. LNG did not suffer relatively as much as other industries did as a consequence of the worldwide lockdowns due to the pandemic.
The little impact that the pandemic had on the global LNG market, such as a delay in certain projects, is certainly not hard to bounce back from, according to Royal Dutch Shell plc (NYSE:RDS). The oil giant forecasts the demand for LNG to roughly double to 700 million tonnes by 2040, from 360 million tonnes in 2020.
Several companies such as Cheniere Energy, Inc. (NYSE:LNG), Devon Energy Corporation (NYSE:DVN), and Chevron Corporation (NYSE:CVX) are investing heavily in building liquefaction facilities in order to reap the profits from the increasing global demand for liquified natural gas. Liquified natural gas is a cleaner and greener choice and economies around the world are shifting towards it, in efforts to battle climate change.
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Our methodology
We, at Insider Monkey, keep track of 867 hedge funds as of the third quarter of 2021. We carefully picked the best LNG stocks that were popular among these hedge funds to compile our list of the 10 best LNG stocks to buy now.
So without further ado, let’s dive into the 10 best LNG stocks to buy now.
Best LNG Stocks to Buy Now
10. Royal Dutch Shell plc (NYSE:RDS)
Number of Hedge Fund Holders: 33
Royal Dutch Shell plc (NYSE:RDS) is an energy and petrochemical company with operations worldwide. The company operates through four segments: Integrated Gas, Upstream, Oil Products, and Chemicals. Royal Dutch Shell plc (NYSE:RDS) was founded in 1907 and is headquartered in The Hague, the Netherlands.
By the end of the third quarter of 2021, 33 hedge funds, out of the elite 867 tracked by us at Insider Monkey, held stakes in Royal Dutch Shell plc (NYSE:RDS). The total value of these stakes was more than $2.05 billion.
This November, Argus analyst Bill Selesky raised his price target on Royal Dutch Shell plc (NYSE:RDS) to $54 from $46 and reiterated a Buy rating on the shares. Royal Dutch Shell plc (NYSE:RDS) turned over revenues of $60.04 billion for the third quarter of 2021, which is indicative of the growth of 36.40% year over year.
As of September 2021, Ken Fisher of Fisher Asset Management owns more than 18.15 million shares in Royal Dutch Shell plc (NYSE:RDS) which are worth $809 million. Fisher Asset Management is the leading stakeholder in Royal Dutch Shell plc (NYSE:RDS).
9. Antero Resources Corp (NYSE:AR)
Number of Hedge Fund Holders: 41
Antero Resources Corp (NYSE:AR) operates as an independent oil and natural gas company that acquires, explores for, develops, and produces natural gas, natural gas liquids, and oil properties in the United States. Antero Resources Corp (NYSE:AR) was founded in 2002 and is headquartered in Denver, Colorado.
On October 26, Raymond James analyst John Freeman raised his price target on Antero Resources Corp (NYSE:AR) to $32 from $19 and reiterated a Strong Buy rating on the shares.
We at Insider Monkey take a look at the hedge fund sentiment of stocks to determine how well the stock is performing in the market, and according to our data, by the end of the third quarter of 2021, 41 hedge funds held positions in Antero Resources Corp (NYSE:AR) with a total stake value of $973 million. This is compared to 33 positions in the second quarter, with stakes worth $841 million.
According to the latest September filings, SailingStone Capital Partners was the leading shareholder in Antero Resources Corp (NYSE:AR). The fund owns over 6 million shares of the stock, worth a total of $115.02 million. The investment covers a hefty 29.07% of SailingStone Capital Partner’s 13F portfolio.
8. Chesapeake Energy Corporation (NASDAQ:CHK)
Number of Hedge Fund Holders: 44
Last month, Chesapeake Energy Corporation (NASDAQ:CHK) was initiated with a Buy at UBS by analyst Lloyd Byrne, with a price target of $88. The analyst believes that its $2.2 billion acquisition of Vine Energy announced in August improves the company’s upside.
For the third quarter of 2021, Chesapeake Energy Corporation (NASDAQ:CHK) boasted earnings per share of $2.38, and beat expert EPS estimates by $0.69. The company’s revenue turnover was reported to be $1.17 billion, beating estimates by $360.8 million.
Chesapeake Energy Corporation (NASDAQ:CHK) is up 33% year to date.
Insider Monkey’s data shows that by the end of the third quarter of 2021, 44 hedge funds held stakes Chesapeake Energy Corporation (NASDAQ:CHK) worth $2.17 billion. The primary stakeholder in the company’s stock was Howard Marks’ Oaktree Capital Management.
7. Pioneer Natural Resources Company (NYSE:PXD)
Number of Hedge Fund Holders: 48
Pioneer Natural Resources Company (NYSE:PXD) is an independent oil and gas exploration and production company in the United States. The company explores for, develops, and produces oil, natural gas liquids (NGLs), and gas. It has operations in the Permian Basin in West Texas. Pioneer Natural Resources Company (NYSE:PXD) was founded in 1997 and is headquartered in Irving, Texas.
Pioneer Natural Resources Company (NYSE:PXD) reported its third-quarter earnings in September. The company reported earnings per share of $4.13, beating EPS estimates by $0.27. Pioneer Natural Resources Company (NYSE:PXD) generated revenues of $4.46 billion, which shows a 145.90% growth year over year. Moreover, the share price for the stock has gained 7% over the past six months.
This October, Mizuho analyst Vincent Lovaglio raised his price target on Pioneer Natural Resources Company (NYSE:PXD) to $263 from $231 and reiterated a Buy rating on the shares.
By the end of the third quarter of 2021, Insider Monkey found Pioneer Natural Resources Company (NYSE:PXD) to be a part of 48 hedge funds’ investment portfolios. The hedge funds held a total stake of $958.64 million in the oil and gas corporation. This is compared to 45 positions in the second quarter of 2021, with a total stake of $876.32 million.
Insider Monkey’s data shows Adage Capital Management to be in possession of the most shares of Pioneer Natural Resources Company (NYSE:PXD). As of September 30th, the fund owns more than 1.57 million shares in the company, which are worth $262.42 million.
6. EQT Corporation (NYSE:EQT)
Number of Hedge Fund Holders: 57
EQT Corporation (NYSE:EQT) operates as a natural gas production company in the United States. The company produces natural gas, natural gas liquids (NGLs), and crude oil. EQT Corporation (NYSE:EQT) was founded in 1878 and is headquartered in Pittsburgh, Pennsylvania.
On October 18th, Mizuho analyst Vincent Lovaglio raised his price target on EQT Corporation (NYSE:EQT) to $35 from $29 and reiterated a Buy rating on the shares.
For the third quarter of 2021, EQT Corporation (NYSE:EQT) reported earnings per share of $0.12, beating EPS estimates by $0.17.
Our data shows that by the end of the third quarter of 2021, 57 hedge funds out of 867 tracked by Insider Monkey held stakes in EQT Corporation (NYSE:EQT), worth $838.22 million. This is compared to 43 hedge positions in the previous quarter with stakes of $468.45 million. It can be observed that the hedge fund sentiment surrounding the stock is positive.
According to the September filings, Adage Capital Management is the leading shareholder in EQT Corporation (NYSE:EQT) with a total stake value of $81.74 million. The fund owns more than 3.99 million shares of EQT Corporation (NYSE:EQT) which represent 0.16% of its investment portfolio.
5. Devon Energy Corporation (NYSE:DVN)
Number of Hedge Fund Holders: 48
By the end of the third quarter of 2021, 48 hedge funds out of the 867 tracked by Insider Monkey held stakes in Devon Energy Corporation (NYSE:DVN). The total value of these stakes was $1.40 billion. This is compared to 50 positions in the second quarter of 2021, with total stakes worth $1.03 billion.
As of the third quarter of 2021, Devon Energy Corporation (NYSE:DVN) generated revenues of $3.47 billion, up 224.84% year over year, and beat revenue estimates by $546.05 million. The stock also posted earnings per share of $1.08, beating expert EPS estimates by $0.15.
On 4th November, Truist analyst Neal Dingmann raised his price target on Devon Energy Corporation (NYSE:DVN) to $60 from $52 and reiterated a Buy rating on the shares after its third-quarter earnings beat.
According to Insider Monkey’s database, GQG Partners is the key stakeholder in Devon Energy Corporation (NYSE:DVN).
4. ConocoPhillips (NYSE:COP)
Number of Hedge Fund Holders: 49
ConocoPhillips (NYSE:COP) explores for, produces, transports, and markets crude oil, bitumen, natural gas, liquefied natural gas (LNG), and natural gas liquids worldwide. The company primarily engages in conventional and tight oil reservoirs, shale gas, heavy oil, LNG, oil sands, and other production operations. ConocoPhillips (NYSE:COP) was founded in 1917 and is headquartered in Houston, Texas.
This October, Mizuho analyst Vincent Lovaglio raised his price target on ConocoPhillips (NYSE:COP) to $99 from $88 and reiterated a Buy rating on the shares.
ConocoPhillips (NYSE:COP) posted its third-quarter earnings this September. According to their quarterly assessment, the company reported an EPS of $1.77, beating estimates by $0.25. On top of this, the company generated revenues of $11.62 billion, up 165.21% year over year, and beat revenue estimates by $1.36 billion.
As of the third quarter of 2021, 49 hedge funds have reportedly held stakes in ConocoPhillips (NYSE:COP) worth roughly $1.37 billion. This is compared to 50 hedge funds in the second quarter of 2021, with stakes of $1.15 billion.
According to Insider Monkey’s data, as of September 30th, Ken Fisher’s Fisher Asset Management has the highest stakes in ConocoPhillips (NYSE:COP). Mr. Fisher owns 5.95 million shares in the company, worth $403.5 million.
ClearBridge Investments, an investment management firm, published its “Large Cap Value Strategy” first quarter 2021 investor letter. The firm mentioned ConocoPhillips (NYSE:COP) in their investor letter and shared their stance on the company, here’s what they had to say:
“While reducing in health care and consumer staples, we increased our exposure to high-quality names in economically sensitive areas of the market. We added to low-cost, high-quality energy names (including) ConocoPhillips. We are positive on the company’s strong balance sheets, competitive positions and exposure to an economic recovery.”
3. Cheniere Energy, Inc. (NYSE:LNG)
Number of Hedge Fund Holders: 49
By the end of the third quarter of 2021, 49 hedge funds out of the elite 867 tracked by Insider Monkey held stakes in Cheniere Energy, Inc. (NYSE:LNG) worth $3.10 billion. This is compared to 49 positions in the previous quarter, with a total stake value of $2.94 billion. The hedge fund sentiment surrounding the stock can be observed to be positive.
On October 25, Morgan Stanley analyst Devin McDermott raised his price target on Cheniere Energy, Inc. (NYSE:LNG) to $132 from $94 and reiterated an Overweight rating on the shares. The analyst highlighted that the stock price of the company has risen 110% over the past year as the company has now beaten expectations and raised guidance for three consecutive quarters.
Cheniere Energy, Inc. (NYSE:LNG) reported its third-quarter earnings in September 2021. The company has generated a revenue of $3.20 billion, which indicates year-over-year growth of 119.18%.
According to the September filings, Icahn Capital LP holds the most shares of Cheniere Energy, Inc. (NYSE:LNG). The fund is in possession of more than 16.16 million shares of the stock, worth roughly $1.57 billion.
2. Chevron Corporation (NYSE:CVX)
Number of Hedge Fund Holders: 51
Chevron Corporation (NYSE:CVX) engages in integrated energy, chemicals, and petroleum operations worldwide. The company operates in two segments, Upstream and Downstream. Chevron Corporation (NYSE:CVX) was founded in 1879 and is headquartered in San Ramon, California.
Out of the 867 elite funds tracked by Insider Monkey, 51 hedge funds held stakes in Chevron Corporation (NYSE:CVX) by the end of the third quarter of 2021. The total value of these stakes was $4.44 billion. This is compared to 50 positions in the previous quarter with a total stake value of $4.27 billion.
As of this November, Wells Fargo analyst Roger Read raised his price target on Chevron Corporation (NYSE:CVX) to $115 from $109 and kept an Equal Weight rating on the shares. The analyst notes Chevron Corporation (NYSE:CVX) delivered an “impressive” third-quarter performance and continues to strengthen its balance sheet.
As of the third quarter of 2021, Chevron Corporation (NYSE:CVX) reported earnings per share of $2.96, beating estimates by $0.77. The company’s revenue came out at $44.71 billion, up 82.86% year over year, and beat estimates by $3.86 billion.
According to the latest third-quarter filings, Warren Buffett’s Berkshire Hathaway is the leading stakeholder in Chevron Corporation (NYSE:CVX). Mr. Buffett owns more than 28.7 million shares in the company, which amount to a stake value of $2.91 billion, and represent 0.99% of Berkshire Hathaway’s 13F portfolio.
ClearBridge Investments, an investment management firm, published its “Large Cap Value Strategy” first quarter 2021 investor letter, in which it shared its insights on Chevron Corporation (NYSE:CVX). Here’s what the experts at ClearBridge Investments had to say:
“While reducing in health care and consumer staples, we increased our exposure to high-quality names in economically sensitive areas of the market. We added to low-cost, high-quality energy names, (including) Chevron. We are positive on the company’s strong balance sheets, competitive positions and exposure to an economic recovery.”
1. Exxon Mobil Corporation (NYSE:XOM)
Number of Hedge Fund Holders: 64
Exxon Mobil Corporation (NYSE:XOM) explores for and produces crude oil and natural gas in the United States and internationally. It operates through Upstream, Downstream, and Chemical segments. Exxon Mobil Corporation (NYSE:XOM) was founded in 1870 and is based in Irving, Texas.
Exxon Mobil Corporation (NYSE:XOM) released its third-quarter 2021 earnings this September. The company reported earnings per share of $1.58, and beat EPS estimates by $0.06. The company also reported revenues of $73.79 billion, up 59.71% year over year, and beat estimates by $2.09 billion.
By the end of the third quarter of 2021, 64 hedge funds held stakes in Exxon Mobil Corporation (NYSE:XOM). The total value of these stakes was $4.64 billion. This is compared to 68 positions in the second quarter of 2021, with stakes of $3.69 billion.
Taking a look at the September filings, GQG Partners is the primary stakeholder in Exxon Mobil Corporation (NYSE:XOM), possessing the highest stakes in the company as compared to other hedge funds tracked by Insider Monkey. The fund has stakes worth over $1.56 billion in the company, which represents 4.28% of its 13F portfolio.
First Eagle Investment Management, an investment management firm, published its second-quarter 2021 investor letter, in which it mentioned Exxon Mobil Corporation (NYSE:XOM). Here’s what the firm had to say:
“Leading contributors in the First Eagle Global Fund this quarter included Exxon Mobil Corporation. The continued recovery in oil prices as economies reopen helped fuel another strong performance across the energy complex, including shares of Exxon Mobil. Exxon Mobil recently lost a proxy fight with an activist investor that took three of the company’s 12 board seats. While the press was focused on the investor’s concerns over Exxon Mobil’s long term energy transformation strategy, other factors fundamental to shareholder returns—like capital discipline and balance sheet management—were also at play.”
You can also take a look at 15 Biggest Oil Companies in USA and 15 Most Valuable Gas Companies in the World.
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Disclosure: None. 10 Best LNG Stocks to Buy Now is originally published on Insider Monkey.
