In this article, we are going to discuss the 12 best natural gas stocks to buy according to analysts.
The benchmark U.S. natural gas price at Henry Hub has surged by more than 10% over the last month, primarily due to the lower daily output and forecasts for hotter weather and higher demand over the next few weeks.
The global natural gas prices can also be significantly impacted by the growing escalations in the Middle East, especially after Iran’s parliament recently endorsed the closure of the Strait of Hormuz, a crucial choke point through which 20% of the world’s oil and natural gas shipments pass.
However, it is still unclear if Iran will actually attempt such a blockade, as the country has vowed to close the strait in the past but never successfully followed through. Also, most of the energy passing through the narrow stretch of water is delivered to Asia, and Iran is wary of alienating its allies, particularly China.
Moreover, with President Trump now announcing a ceasefire between Israel and Iran, there is a chance that the tense situation in the region will now begin to de-escalate.
With that said, here are the Best Natural Gas Stocks with the Highest Upside Potential.
Our Methodology
To collect data for this article, we examined all the companies in the natural gas sector that are listed on NASDAQ and NYSE and then compiled a list of the stocks with the highest upside potential according to Wall Street analysts, as of June 21, 2025. The following are the Best Natural Gas Stocks According to Analysts.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
12. Kinder Morgan, Inc. (NYSE:KMI)
Upside Potential as of June 21: 14.44%
Kinder Morgan, Inc. (NYSE:KMI) makes its money typically by charging fees for use of the capacity of its pipelines, terminals, and other assets. The company boasts very stable cash flows, as around 95% of its earnings come from predictable sources like take-or-pay agreements, fee-based contracts, or commodity price hedges.
Kinder Morgan, Inc. (NYSE:KMI) maintains a robust balance sheet, ending Q1 2025 with a Net Debt-to-Adjusted EBITDA ratio of 4.1 times. It also generated cash flow from operations of $1.2 billion and $0.4 billion in free cash flow after capital expenditures. The company is targeting to generate about $5.9 billion in cash flow from operations this year, up 5% from 2024.
Kinder Morgan, Inc. (NYSE:KMI) remains committed to its shareholders and paid dividends of around $650 million in the first quarter of 2025. The company recently announced a quarterly dividend of $0.2925 per share for Q1, up 2% YoY and marking the eighth straight year that Kinder Morgan has increased its payouts. With an annual dividend yield of 4.18%, KMI was recently included in our list of the 10 Energy Stocks with Fat Dividends.
Kinder Morgan, Inc. (NYSE:KMI) is one of the largest energy infrastructure companies in North America. With approximately 66,000 miles of pipelines, the company transports approximately 40% of the natural gas produced in the United States.
11. Duke Energy Corporation (NYSE:DUK)
Upside Potential as of June 21: 14.62%
Duke Energy Corporation (NYS:DUK) recently revealed that it intends to apply to the Public Service Commission of South Carolina (PSCSC) to construct a new natural gas-fired power plant in Anderson County. The company hopes to begin construction in 2027 and put the 1.4 GW facility into operation by 2031.
The gas turbines and related equipment for the Anderson plant will be provided by GE Vernova, which recently signed a partnership with Duke Energy Corporation (NYS:DUK) to provide the latter with up to 11 gas turbines and associated equipment for its future power plants. The deal is expected to help Duke meet an anticipated record increase in power demand from advanced manufacturing, data centers, and population growth.
The development is consistent with Duke Energy Corporation (NYS:DUK)’s Carolinas Resource Plan, in which the energy provider identified a need for 6.8 GW of new combined-cycle gas generation and about 2.125 GW of combustion turbine gas generation as part of its recommended portfolio.
Duke Energy Corporation (NYS:DUK) engages in the distribution of natural gas and energy-related services. The company’s electric utilities serve 8.4 million customers across six states, while its natural gas utilities provide gas to 1.7 million customers across five states in the US.
10. Gran Tierra Energy Inc. (NYSE:GTE)
Upside Potential as of June 21: 18.06%
Gran Tierra Energy Inc. (NYSE:GTE) is counted among the Best Natural Gas Stocks to Buy According to Analysts. GTE received a boost this week after Raymond James analyst Luke Davis initiated coverage of the stock with a ‘Market Perform’ rating and a price target of C$10.
According to the analyst, the energy company’s recent repositioning and entrance into the Canadian market provides ‘a platform for differentiated growth across multiple plays combined with geographic diversification’. However, despite the bullish aspects, Davis noted that investors are currently more focused on the integration of i3 Energy and enhancements to the company’s balance sheet.
Gran Tierra Energy Inc. (NYSE:GTE) rallied earlier this month after Equinox Partners Investment Management LLC, a major shareholder, notably increased its stake in the company. Additionally, Gran Tierra also reported transactions involving the acquisition of common shares by its directors and key managerial personnel through the Employee Share Savings Plan, further increasing investor confidence in the company.
Gran Tierra Energy Inc. (NYSE:GTE) is an independent international energy company currently focused on oil and natural gas exploration and production in Canada, Colombia, and Ecuador.
