In this article, we are going to discuss the 12 most undervalued natural gas stocks to buy now.
The ongoing supply disruptions in the Middle East have choked around a fifth of the global LNG supply. Moreover, an Iranian missile attack on QatarEnergy forced it to halt LNG production last month, with the company warning that the outage could remove over 12 million mtpa of supply for up to five years.
The supply disruptions have sent the spot LNG prices soaring, especially in Asia, where buyers are now looking for alternatives. The American LNG operators are now pulling all levers to ramp up supply as quickly as possible and take advantage of this opportunity.
As a result, the US Energy Information Administration (EIA) revealed in its latest Short-Term Energy Outlook that it projects the country’s natural gas exports to grow by 18% to 18.7 billion cubic feet per day (Bcf/d) in 2026, followed by an additional 10% surge to 20.5 Bcf/d in 2027. The agency expects the US LNG export terminals to operate at higher utilization rates this year, driven by increased demand for cargoes from regions outside the Strait of Hormuz.
With that said, here are the Most Undervalued Natural Gas Stocks to Invest in.
Our Methodology
To collect data for this article, we scanned the list of natural gas companies and identified stocks with a forward P/E ratio of less than 15, as of April 15. We then limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. The following are the Most Undervalued 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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
12. BP p.l.c. (NYSE:BP)
Forward P/E Ratio as of April 15: 14.99
BP p.l.c. (NYSE:BP) is a British multinational company recognized worldwide for quality gasoline, transport fuels, chemicals, and alternative sources of energy such as wind and biofuels.
On April 15, UBS analyst Joshua Stone upgraded BP p.l.c. (NYSE:BP) from ‘Neutral’ to ‘Buy’, while also boosting its price target from £650 to £700. The raised target indicates an upside of over 20% from the current levels.
According to Mr. Stone, BP’s new CEO, Meg O’Neill, “takes over at a critical turning point for the company.” The analyst outlined that the current high-priced environment amid the Middle East conflict is “undoubtedly positive” for the energy giant and there are “plenty of catalysts in 2026”. However, the London-based company still has work to do to regain investor confidence and reverse the decline it has witnessed compared to its peers since 2018.
Joshua Stone highlighted right-sizing the company’s cost base as a key area for BP p.l.c. (NYSE:BP) to focus on, since the company has the highest cost intensity of its peers, with total operating expenses up around $10 billion since 2019. The analyst has suggested potential savings of $3 billion to $6 billion from the current levels.
It needs mentioning that BP p.l.c. (NYSE:BP) is already looking to optimize its operations, with a pledge to slash up to $5 billion in costs and divest $20 billion in assets by 2027.
11. Exxon Mobil Corporation (NYSE:XOM)
Forward P/E Ratio as of April 15: 14.64
Exxon Mobil Corporation (NYSE:XOM) is one of the largest integrated fuels, lubricants, and chemical companies in the world.
On April 10, TD Cowen lowered its price target on Exxon Mobil Corporation from $175 to $172, but maintained its ‘Buy’ rating on the shares. The trimmed target still indicates an upside of over 20% from the current price level.
The move comes after TD Cowen revised its estimates, noting that the upstream realizations and downstream margins both fell below forecasts. Moreover, Exxon’s guidance implies that all its production in the Middle East has been impacted by the war.
Exxon Mobil Corporation revealed on April 8 that it expects the Middle East conflict to reduce its Q1 production by 6% compared to the previous quarter, when it reported 5 million boe/day of output. The company’s upstream assets in Qatar and the United Arab Emirates, which accounted for approximately 20% of its total global oil production last year, have been impacted by the disruptions amid the war.
10. Equinor ASA (NYSE:EQNR)
Forward P/E Ratio as of April 15: 13.39
Next on our list of the Undervalued Natural Gas Stocks is Equinor ASA (NYSE:EQNR). It is an international energy company headquartered in Norway, with over 25,000 employees in around 20 countries worldwide.
On April 15, Danske Bank downgraded Equinor ASA from ‘Buy’ to ‘Hold’ while assigning the stock a price target of NOK 385. The price target indicates an upside of over 9% from the current levels.
Equinor ASA continues to make strides in the natural gas sector and announced last month that it had started development drilling at the Raia natural gas project in the Campos basin offshore Brazil. Once operational, the project is expected to produce 126,000 barrels of oil and condensate and 16 million cubic meters of gas per day, representing around 15% of Brazil’s total natural gas demand. Raia marks the Norwegian energy giant’s largest international investment to date, totaling around $9 billion.
Equinor ASA boasts a robust annual dividend yield of 4.07%, putting it among the 15 Best High Yield Energy Stocks to Buy Right Now.
9. EQT Corporation (NYSE:EQT)
Forward P/E Ratio as of April 15: 12.99
EQT Corporation (NYSE:EQT) is a premier, vertically integrated American natural gas company with production and midstream operations focused in the Appalachian Basin.
On April 14, EQT Corporation declared a quarterly dividend of $0.165 per share. The dividend is payable on June 1 to all shareholders of record on May 6.
On April 14, EQT Corporation’s unlevered free cash flow breakeven of approximately $2/MMBtu is among the lowest in North America, enabling it to withstand the volatility in natural gas prices. Moreover, the company’s unique position at the heart of the Appalachian Basin and “Data Center Alley” gives it exposure to meet an estimated new gas demand of 10 Bcf/d from the AI-driven infrastructure build-outs through 2030.
As a result, EQT Corporation is projecting a cumulative free cash flow of over $16 billion over the next five years. Meanwhile, the company is targeting an adjusted EBITDA attributable to EQT of approximately $6.5 billion for FY 2026, while its free cash flow attributable to EQT is expected to be $3.5 billion.
EQT Corporation was also recently included in our list of the 15 Cash-Rich Dividend Stocks to Invest in Right Now.
8. TotalEnergies SE (NYSE:TTE)
Forward P/E Ratio as of April 15: 12.47
TotalEnergies SE (NYSE:TTE) is a global integrated energy company that produces and markets energy.
TotalEnergies SE revealed on April 16 that it was expecting a sharp rise in first-quarter earnings, driven by its strong trading performance and soaring prices amid the US-Iran war. While the company lost around 15% of its output amid the Middle East disruptions, it expects its Q1 2026 oil and gas production to be in line with the previous quarter, as start-ups in Brazil and Libya offset the lost production in the Middle East. This led to a sharp surge in upstream income due to the multi-year high prices.
TotalEnergies SE’s downstream results are also expected to receive a boost in the first quarter, supported by its refineries running above 90% and the company’s strong performance from crude oil and petroleum product trading activities in March.
Lastly, TotalEnergies SE also expects its Q1 integrated LNG results and cash flow to be significantly higher than the previous quarter, driven by a 10% sequential LNG production increase and strong trading activities benefiting from the market volatility.
7. EOG Resources, Inc. (NYSE:EOG)
Forward P/E Ratio as of April 15: 12.33
Next on our list of the Undervalued Natural Gas Stocks is EOG Resources, Inc. (NYSE:EOG). It is one of the largest crude oil and natural gas exploration and production companies in the United States, with proved reserves in the US and Trinidad.
On April 15, Citi analyst Scott Gruber reduced the firm’s price target on EOG Resources, Inc. from $150 to $142, while maintaining a ‘Neutral’ rating on the shares. The trimmed target still reflects an upside potential of over 7% from the current share price.
EOG Resources, Inc. expects to deliver a free cash flow of approximately $4.5 billion in FY 2026, with its breakeven price to cover the year’s capital program and regular dividend standing at $50 WTI. However, the supply disruptions amid the Middle East conflict sent the global crude oil prices soaring to multi-year highs, providing a significant FCF boost for operators like EOG.
Heartland Advisors, an investment management company, stated the following regarding EOG Resources, Inc. in its Q1 2026 investor letter:
“Energy. One of our top contributors in the quarter was EOG Resources, Inc., a Quality Value oil and gas producer. EOG is a low-cost, high-return operator in a tough business. Before the Iran conflict escalated, EOG shares rose after the company disclosed additional details that quelled concerns regarding well productivity in its Permian Basin footprint and provided evidence of ample remaining low-cost inventory. Meanwhile, EOG continues to reach new milestones in its portfolio of attractive domestic and international growth assets. This is all happening while the company is aggressively returning cash to shareholders via dividends and share repurchases.
Geopolitical factors have certainly helped turbocharge EOG shares recently, along with the broader oil and gas industry. However, compared to other upstream energy producers, we are most intrigued by the company’s elite track record in exploration and development combined with tangible evidence that it is repeating a similar playbook to what built the company into a premier operator. Even after the recent run, shares trade at just 6x EV/EBITDA.”
6. Cenovus Energy Inc. (NYSE:CVE)
Forward P/E Ratio as of April 15: 11.03
Cenovus Energy Inc. (NYSE:CVE) is an integrated energy company that operates across the full oil and natural gas value chain in exploration, production, refining, transportation, and retail.
On April 9, UBS upped its price target on Cenovus Energy Inc. from C$36 to C$41, while maintaining a ‘Buy’ rating on the shares. The raised target reflects an upside of over 17% from the current share price.
Similarly, earlier on April 7, BMO Capital also bumped its price target on Cenovus Energy Inc. from $35 to $42, while keeping an ‘Outperform’ rating on the shares. The target boost comes as the analyst firm adjusted its models with the updated mark-to-market assumptions in Q1, reflecting the impact of the Middle East conflict and the ongoing oversupply issues impacting the North American natural gas market.
The oil and gas markets remain on edge, awaiting President Trump’s next move. According to the firm, an end to the US-Iran war would allow the resumption of flows through the waterway of Hormuz, bringing crude prices down to the $75-$85 per barrel trading range. On the other hand, if the current peace efforts fail and hostilities escalate, we could even see oil prices soaring to the $150-$200 per barrel levels. While the analyst firm expressed concerns over the steep economic impact of a prolonged conflict, it expressed belief that the war would wind down by the end of this month.
5. Devon Energy Corporation (NYSE:DVN)
Forward P/E Ratio as of April 15: 11.01
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 April 14, UBS slightly reduced its price target on Devon Energy Corporation from $61 to $60, but maintained its ‘Buy’ rating on the shares. The trimmed target still represents an upside of over 32% from the current price levels.
That said, earlier on April 7, BMO Capital instead raised its price target on Devon Energy Corporation by $5 and kept an ‘Overweight’ rating on the shares (read more details here).
It was announced earlier in February that Devon Energy Corporation would merge with Coterra Energy to become a large-cap producer with a top position in the Permian Basin. The transaction is expected to close in the second quarter of 2026, with the companies aiming to deliver $1 billion in annual pretax run rate synergies by the end of 2027. The combined entity also plans to lift shareholder returns through higher dividends and a share buyback program of more than $5 billion.
4. Range Resources Corporation (NYSE:RRC)
Forward P/E Ratio as of April 15: 10.63
Range Resources Corporation (NYSE:RRC) is a pioneer of the Marcellus Shale and one of the most active natural gas drillers in Pennsylvania.
Range Resources Corporation had a setback on April 14 when Citi trimmed its price target on the stock from $50 to $45, while maintaining a ‘Neutral’ rating on the shares. The lowered target still indicates an upside of over 9% from the current levels.
On the other hand, the analysts over at Jefferies turned more bullish on Range Resources Corporation earlier on April 5, raising the firm’s price target on the stock (read more details here).
Range Resources Corporation is targeting production of 2.35 to 2.4 Bcfe per day for FY 2026, with a projected capital spending of $650 million to $700 million. The company expects its first-quarter production to be down versus Q4 of last year, with output then stepping up significantly in the second half of 2026 and continuing into 2027.
3. Expand Energy Corporation (NASDAQ:EXE)
Forward P/E Ratio as of April 15: 9.92
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.
On April 13, UBS lowered its price target on Expand Energy Corporation from $139 to $133, but maintained its ‘Buy’ rating on the shares. The reduced target, which still indicates an upside of over 38% from the current price levels, comes as the analyst firm updated the company’s model as part of a Q1 preview. According to UBS, EXE’s stock weakness has driven a faster buyback.
Similarly, earlier on April 7, BMO Capital analyst Phillip Jungwirth also trimmed the firm’s price target on Expand Energy Corporation from $125 to $120, while keeping an ‘Outperform’ rating on the shares.
With an upside potential of over 38% as of the writing of this piece, Expand Energy Corporation is included among the 15 Best American Energy Stocks to Buy According to Wall Street Analysts.
2. Shell plc (NYSE:SHEL)
Forward P/E Ratio as of April 15: 9.86
Shell plc (NYSE:SHEL) is an integrated energy company with operations spanning exploration, production, refining, marketing, and chemical manufacturing, alongside growing investments in biofuels and hydrogen.
A Reuters report on April 9 revealed that Shell plc (NYSE:SHEL) is planning to begin natural gas production from the Loran-Manatee offshore field, which crosses the border of Venezuela and Trinidad and Tobago, by mid-2027. The move comes as the energy giant looks to accelerate its projects in Venezuela, especially to Trinidad, which needs a fresh gas supply for its LNG and petrochemical projects.
According to estimates, Loran holds 7.3 Tcf of gas reserves, compared to Manatee’s reserves of 2.7 Tcf. While Shell expects to begin production at Manatee next year, it has not taken any final investment decision on Loran yet.
Moreover, given the high demand, Shell plc (NYSE:SHEL) has decided to increase the capacity of the pipeline that will transport the gas to Trinidad to 1 billion cubic feet per day, up from the originally planned 700 million cubic feet per day.
1. Suncor Energy Inc. (NYSE:SU)
Forward P/E Ratio as of April 15: 8.90
Topping our list of the Most Undervalued Natural Gas Stocks to Buy is Suncor Energy Inc. (NYSE:SU). It is a Canadian integrated energy company that extracts, produces, and provides energy from a mix of sources, ranging from oil sands to renewable fuels. The firm supplies and trades crude oil, natural gas, sulphur, and petroleum coke to mid-to large-sized businesses.
On April 14, JPMorgan raised its price target on Suncor Energy Inc. from C$79 to C$105, while keeping an ‘Overweight’ rating on the shares. The bumped target, which reflects an upside potential of more than 21% from the current share price, comes as part of the analyst firm’s Q1 preview.
JPMorgan cited the soaring commodity prices amid the Middle East conflict as the primary reason behind the boost. The analyst expects a strong performance by Suncor Energy Inc., both upstream and downstream, in its upcoming Q1 2026 report.
Suncor Energy Inc. is targeting to repurchase C$3.3 billion of its shares in 2026, with expectations to return 100% of excess funds to shareholders. With an annual dividend yield of 2.79%, Suncor Energy Inc. was recently included in our list of the 14 Best Oil and Gas Dividend Stocks to Buy Right Now.
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