In this article, we are going to discuss the best natural gas stocks to buy right now.
US natural gas futures surged by approximately 10% in 2025, driven by high energy demand from data centers and record LNG exports from the country. However, after hitting a near three-year high in early December, natural gas prices have since fallen by over 34% due to forecasts pointing to warmer temperatures and, hence, lower heating demand.
In its Short-Term Energy Outlook report last month, the US Energy Information Administration projected domestic gas consumption to rise from a record 90.4 bcfd in 2024 to 91.8 bcfd in 2025. The booming LNG sector has added significantly to the demand, as according to preliminary data from LSEG, the United States shipped 111 million metric tons of liquefied natural gas in 2025, making it the world’s largest LNG exporter by a wide margin.
The growth was primarily driven by new LNG export projects coming into service, helped by President Trump lifting the moratorium on new facilities after he took office. Europe remains the top destination for American LNG, as the region continues its efforts to replace Russian gas amid the war in Ukraine.
American LNG exports are expected to continue to support natural gas prices in 2026 as more capacity comes online, including the 18 million metric tons per annum Golden Pass project in Texas.
Our Methodology
To collect data for this article, we observed companies in the natural gas sector and shortlisted those with at least 5% upside potential, according to Wall Street analysts as of January 5, 2026. We then ranked stocks by the number of hedge funds invested in them as of the end of Q3 2025, according to the Insider Monkey database, and selected the top ten names. To maintain institutional relevance, we have only included stocks with a market cap of $2 billion or more. The following are the Best Natural Gas Stocks to Buy Now.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
10. Energy Transfer LP (NYSE:ET)
Number of Hedge Fund Holders: 35
Upsider Potential as of January 5: 33.98%
Energy Transfer LP (NYSE:ET) is one of the largest and most diversified midstream energy companies in North America, with a strategic footprint across all major US production basins.
Energy Transfer LP (NYSE:ET) announced on December 18 that it is suspending development of its Lake Charles LNG export facility in Louisiana, amid fears of a looming LNG supply glut next year. Instead, the company wants to focus its attention and funds on the natural gas pipelines, which it believes is a more lucrative business.
The strategic decision comes as Energy Transfer LP (NYSE:ET) still sees itself as a pipeline operator rather than an LNG-focused company, especially with LNG margins getting squeezed due to lower prices. In this regard, the company also announced it would increase the transportation capacity of its planned Transwestern pipeline expansion to meet significant regional growth demand. The diameter of the Desert Southwest project’s main pipeline will be raised from 42 to 48 inches, increasing its capacity to as much as 2.3 billion cf/day. As a result, the project cost has increased to $5.6 billion from $5.3 billion.
Energy Transfer LP (NYSE:ET) also continues to benefit from the rising energy demand amid the ongoing AI boom, and over the last few months, the company has announced several agreements with hyperscalers to provide their data centers with natural gas.
9. Cenovus Energy Inc. (NYSE:CVE)
Number of Hedge Fund Holders: 38
Upsider Potential as of January 5: 26.67%
Cenovus Energy Inc. (NYSE:CVE) is an integrated energy company with oil and natural gas production operations in Canada and the Asia Pacific region, and upgrading, refining, and marketing operations in Canada and the United States.
Cenovus Energy Inc. (NYSE:CVE) received a boost on January 2 when Goldman Sachs analyst Neil Mehta reinstated coverage of the stock with a ‘Buy’ rating and a price target of $20, indicating an upside of 20% from the current share price. The analyst expects Cenovus to generate ‘strong’ free cash flow over the long term, especially after the acquisition of MEG Energy in November. The multi-billion dollar deal has added 110,000 bpd of long-life, low-cost assets to the company’s portfolio, consolidating a core growth area in northern Alberta. The MEG acquisition is expected to be immediately accretive to funds flow. Cenovus expects to produce between 945,000 and 985,000 boed in 2026, representing approximately 4% YoY growth.
Moreover, the analyst highlighted Cenovus’ sale of 50% interest in the Wood River and Borger refineries to Phillips 66 in September, adding that it has improved the company’s fundamentals. The Canadian energy operator had been experiencing underperformance at some of its US refineries, and the aforementioned transaction has now simplified its downstream business and sharpened its focus on assets tied to heavy oil operations.
With an annual dividend yield of 3.49%, Cenovus Energy Inc. (NYSE:CVE) is included among the 15 Global Dividend Stocks to Diversify Your Portfolio.
8. Canadian Natural Resources Limited (NYSE:CNQ)
Number of Hedge Fund Holders: 45
Upsider Potential as of January 5: 17.23%
Canadian Natural Resources Limited (NYSE:CNQ) is a senior crude oil and natural gas producer with ongoing operations in its core areas in Western Canada, the UK North Sea, and offshore Africa.
On January 2, Goldman Sachs slightly lowered its price target on Canadian Natural Resources Limited (NYSE:CNQ) from $36 to $35, but maintained a ‘Buy’ rating on the shares. The revised target reflects the firm’s updated crude oil price assumptions, with Goldman forecasting Brent and WTI to average $56 and $52 in 2026, respectively. Moreover, the firm is keeping a close eye on the developments in Venezuela as they could push global oil prices in either direction, since the country has the largest oil reserves in the world. Given the challenges that the oil sector is facing, Goldman Sachs believes that investors are now likely to begin to value equities based on 2027 free cash flow.
That said, Canadian Natural Resources Limited’s (NYSE:CNQ) industry-leading operating costs of approximately $21 per barrel position it to remain competitive even during periods of high volatility. At the same time, its $4.3 billion in liquidity (as of the end of Q3) will allow it to maintain its high annual dividend yield of 5.3% and execute strategic and opportunistic acquisitions.
Canadian Natural Resources Limited (NYSE:CNQ) was recently included in our list of the Best Energy Stocks to Buy for a Retirement Stock Portfolio.
7. Devon Energy Corporation (NYSE:DVN)
Number of Hedge Fund Holders: 59
Upsider Potential as of January 5: 20.38%
Devon Energy Corporation (NYSE:DVN) is a leading independent energy company engaged in finding and producing oil and natural gas, with operations focused onshore in the United States.
On December 31, Roth Capital reiterated its ‘Buy’ rating on Devon Energy Corporation (NYSE:DVN) and assigned the stock a price target of $42, indicating an upside potential of almost 15% from the current share price. The analyst believes Devon’s valuation ‘remains compelling’ given its strong free cash flow generation and expects its 2026 production to be slightly above guidance.
Devon Energy Corporation (NYSE:DVN) is projecting to maintain its total output in 2026 at around 845,000 boed, with oil production at approximately 388,000 barrels per day. However, thanks to its ongoing business optimization efforts, the company’s capital investment is expected to range from $3.5 billion to $3.7 billion, a $100 million decrease from 2025 levels. Moreover, Devon can fund this program even at a WTI crude price below $45 per barrel, including its dividend, allowing the company to generate strong free cash flow even during the current slump in the market. Devon also intends to continue targeting share repurchases of $200 million to $300 million per quarter, reaffirming its commitment to shareholders.
Devon Energy Corporation (NYSE:DVN) is exploring hydrogen as part of its energy transition and was recently included among the 8 Best Hydrogen and Fuel Cell Stocks to Buy Now.
6. Occidental Petroleum Corporation (NYSE:OXY)
Number of Hedge Fund Holders: 62
Upsider Potential as of January 5: 17.63%
Occidental Petroleum Corporation (NYSE:OXY) is an independent exploration and production company with assets primarily in the United States, the Middle East, Africa, and Latin America.
Occidental Petroleum Corporation (NYSE:OXY) announced on January 2 that it had completed the sale of its chemical business, OxyChem, to Berkshire Hathaway for $9.7 billion in cash, subject to customary purchase price adjustments. First announced in October, the divestment is a strategic move by Occidental to reduce its debt load, which has ballooned especially since its $12 billion acquisition of CrownRock last year. While the deal will enable the energy operator to achieve its target of reducing its principal debt balance to below $15 billion, the absence of OxyChem will be keenly felt, as the segment contributed $595 million in pre-tax income in the first three quarters of 2025.
Vicki Hollub, President and CEO of Occidental Petroleum Corporation (NYSE:OXY), said the following regarding the sale in the company’s Q3 earnings call:
The sale of OxyChem is an important milestone in the strategic transformation of our company and will enable us to further strengthen our balance sheet, accelerate shareholder returns and unlock high-return opportunities across our core oil and gas business.
Other than debt reduction, Occidental Petroleum Corporation (NYSE:OXY) plans to use the proceeds to accelerate the development of its oil and gas portfolio by investing in its Permian unconventional assets, its Gulf of America waterfloods, and its Baqiyah gas and condensate discovery in Oman.
Berkshire Hathaway made a significant investment in Occidental Petroleum Corporation (NYSE:OXY) back in 2019 and has consistently increased its stake since then. The conglomerate now owns nearly 265 million shares, representing 27% of OXY’s outstanding shares.
5. Kinder Morgan, Inc. (NYSE:KMI)
Number of Hedge Fund Holders: 65
Upsider Potential as of January 5: 12.9%
Kinder Morgan, Inc. (NYSE:KMI) is one of the largest energy infrastructure companies in North America. The company has an interest in or operates approximately 79,000 miles of pipelines and 139 terminals.
On December 23, Jefferies slightly trimmed its price target on Kinder Morgan, Inc. (NYSE:KMI) from $31 to $29, while maintaining its ‘Hold’ rating on the shares. The lowered target still represents an upside of 4% from the current share price. The analyst believes that Kinder Morgan’s new gas projects are the ‘clearest catalyst’ and will provide support to the stock in 2026 and beyond. However, due to their long-cycle nature, the projects may require more time to reach commercialization. As a result, Jefferies does not expect an upside surprise when the company presents its Q4 results later this month.
Kinder Morgan, Inc. (NYSE:KMI) has been investing heavily in expansion and placed $500 million of projects into commercial service in Q3 2025, including the $263 million Altamont Green River Pipeline project. Moreover, the company has several project completions in the pipeline, including the Cumberland and Hiland Express projects, which are expected to come online in the first quarter of 2026. Meanwhile, the GCX expansion is expected to be completed in Q2, and the Plantation North Expansion is projected to be finished by the end of the year. As a result, Kinder Morgan is forecasting its 2026 adjusted profit to be $1.37 per share, up about 8% from its 2025 guidance.
4. ConocoPhillips (NYSE:COP)
Number of Hedge Fund Holders: 72
Upsider Potential as of January 5: 14.42%
ConocoPhillips (NYSE:COP) is one of the world’s largest independent E&P companies based on oil and natural gas production and proved reserves.
On January 5, Bernstein lowered its price target on ConocoPhillips (NYSE:COP) to $98 from $116, while keeping an ‘Outperform’ rating on the shares. Bernstein has started 2026 with a balanced view on crude oil, expecting near-term volatility but remaining constructive on the long-term outlook.
ConocoPhillips (NYSE:COP) surged by 2.6% on January 5 in response to the events in Venezuela last week. With President Nicolás Maduro ousted from power, the White House intends to develop the South American country’s vast oil reserves by opening them up to American companies. ConocoPhillips stands to gain from the situation, as the company is already owed billions by the Venezuelan government, which seized its assets back in 2007 when then-President Hugo Chávez effectively nationalized the country’s oil industry.
As a result, ConocoPhillips (NYSE:COP) took the Venezuelan government to the arbitration court and was even awarded about $10 billion in damages. However, Venezuela has reportedly only paid out a fraction of the amount. While it remains unclear whether ConocoPhillips will ultimately receive those claims or reinvest in the country, the prospect of recovering billions in damages and regaining access to massive oil reserves has attracted strong investor interest.
3. Expand Energy Corporation (NASDAQ:EXE)
Number of Hedge Fund Holders: 77
Upsider Potential as of January 5: 27.32%
Formed in 2024 by the merger of Chesapeake Energy Corporation and Southwestern Energy Company, Expand Energy Corporation (NASDAQ:EXE) operates as an independent natural gas production company in the United States.
Expand Energy Corporation (NASDAQ:EXE) focuses on natural gas and has benefited significantly from recent high demand for the fuel, driven by record US LNG exports and high power demand from data centers. The stock also reached its all-time high last month when US natural gas futures hit a near three-year high of around $5.29 MMBtu. It comes as no surprise that the stock has received positive analyst attention.
On December 19, Citi raised its price target on Expand Energy Corporation (NASDAQ:EXE) from $118 to $125, while maintaining a ‘Buy’ rating on the shares. The revised target implies an upside of approximately 17% to the current share price.
Earlier on December 12, UBS also significantly raised its price target on Expand Energy Corporation (NASDAQ:EXE) from $132 to $154, while keeping its ‘Buy’ rating. The analyst believes that while the energy sector posted limited gains over the last three years, it is well-positioned for more substantial gains in 2026, driven by an improving outlook for oil and natural gas, M&A-driven value creation, cost and capex efficiencies, emerging OFS opportunities, and attractive valuations. While the analyst firm favors natural gas E&Ps, given the high expected demand for the commodity from the LNG and power sector, it also expects the positive momentum to spread broadly across Oil E&Ps and OFS.
2. EQT Corporation (NYSE:EQT)
Number of Hedge Fund Holders: 82
Upsider Potential as of January 5: 24.65%
EQT Corporation (NYSE:EQT) is a leading natural gas producer in the US with production and midstream operations focused in the Appalachian Basin.
On December 19, 2025, Citi slightly lowered its price target on EQT Corporation (NYSE:EQT) from $63 to $62, but maintained its ‘Buy’ rating on the shares. The revised target came amid a correction in natural gas prices, driven by forecasts of above-normal temperatures and lower-than-expected heating demand. US natural gas futures have fallen by 34% since reaching their 3-year high in early December.
EQT Corporation (NYSE:EQT) also came under pressure recently after the company forecasted total sales volume of 550 billion-600 billion cfe for Q4 2025, below the volume of 634 billion cfe reported in the third quarter. The company’s Q4 guidance reflected 15-20 Bcfe of strategic curtailments in October.
That said, EQT Corporation (NYSE:EQT) remains optimistic in 2026 and expects the rapid expansion of America’s LNG infrastructure to provide support to natural gas prices. Moreover, the company is well-positioned to withstand volatility in natural gas prices, given its breakeven price is among the lowest in North America. As a result of its low-cost, integrated business model, EQT expects to generate between $10 billion and over $25 billion in cumulative free cash flow through 2029 at an average gas price of $2.75 to $5 per MMBtu.
1. Chevron Corporation (NYSE:CVX)
Number of Hedge Fund Holders: 89
Upsider Potential as of January 5: 5.58%
Topping our list of the Best Natural Gas Stocks to Buy is Chevron Corporation (NYSE:CVX). The company manufactures and sells a range of high-quality refined products, including gasoline, diesel, marine and aviation fuels, premium base oil, finished lubricants, and fuel oil additives.
On January 2, Citi trimmed its price target on Chevron Corporation (NYSE:CVX) from $185 to $179, but maintained its ‘Buy’ rating on the shares. The reduced target, which still indicates an upside of over 9% from the current share price, comes as the firm updated its estimates to reflect Q4 2024 macro conditions, which featured ‘marginally’ higher oil and gas prices and refining margins. However, the upstream sector also witnessed a higher downtime in the fourth quarter.
That said, Chevron Corporation (NYSE:CVX) is the American oil company that stands to benefit the most from the current scenario following the US military operation to seize Nicolás Maduro. President Trump has already made it clear that regime change would allow American energy firms to reestablish a presence in Venezuela. This works in Chevron’s favor, as the company already maintains its position as the largest foreign investor in the South American country, operating under a US license that permits it to produce and export oil despite recent geopolitical tensions and US sanctions. The oil and gas giant already operates in Venezuela, with about 25% of its operations there, producing around 250,000 barrels per day.
So, while reviving Venezuela’s long-neglected oil sector will require considerable time and investment, Chevron Corporation (NYSE:CVX)’s strong and long-established presence on the ground gives it a significant head start in the race for the biggest oil reserves in the world.
While we acknowledge the potential of CVX to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CVX and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 12 Best Crude Oil Stocks to Buy for Dividends and 11 Best Performing Energy Stocks in 2025.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
