5 Best Natural Gas Stocks to Buy Now

4. Cheniere Energy, Inc. (NYSE:LNG)

Number of Hedge Fund Holders: 67

Cheniere Energy, Inc. (NYSE:LNG) is the first American company to export liquified natural gas (LNG) and is the largest LNG company in the US. 67 hedge funds had a stake in the company in Q1 2023. Two Sigma Advisors was the most prominent hedge fund holder for the quarter with 1.2 million shares worth $190.46 million.

In the last two months, Cheniere Energy, Inc. (NYSE:LNG) signed two noteworthy deals. The first one was announced on June 21 with Equinor ASA (NYSE:EQNR). The company will purchase 1.75 million metric tonnes per annum of LNG from Cheniere Energy, Inc. (NYSE:LNG). The second deal was announced on June 26 with the China-based ENN Natural Gas Co., Ltd. The company will supply 1.8 million tonnes per annum of LNG to ENN and the deliveries will start around mid-2026.

In the last three months, 10 analysts have covered Cheniere Energy, Inc. (NYSE:LNG), and all of them maintain a Buy or Overweight rating on the stock. Their average price of $198.30 is nearly 30% higher than the stock price of $152.84 at the time of writing on June 30.

TimesSquare Capital Management made the following comment about Cheniere Energy, Inc. (NYSE:LNG) in its Q4 2022 investor letter:

“Within Energy, Cheniere Energy, Inc. (NYSE:LNG) is an energy infrastructure company that operates liquefied natural gas (LNG) terminals in Louisiana and Texas. Despite reporting inline for the latest quarter, its stock traded down -9%. Contributing factors were Europe had filled its storage ahead of the winter and a recent dip in natural gas pricing. The market for LNG is likely to remain tight for the next several years. Notably, Cheniere paid down $1.3 billion of long-term debt and repurchased $75 million of common stock during the quarter. Cheniere is well positioned to benefit from ongoing tightness in global gas markets.”