In this article, we will discuss 9 Best Natural Gas Stocks to Buy for Transitional Power.
Natural gas stocks are becoming an increasingly important investment theme on Wall Street as billionaire investors and hedge fund managers bet on rising LNG exports, power demand from AI data centers, energy security concerns, and the global shift away from coal. For many investors, natural gas is increasingly seen as both a transition fuel and a geopolitical asset.
Legendary investor Warren Buffett has long favored energy infrastructure through Berkshire Hathaway Energy because of its durable cash flow and strategic role in powering economies. Buffett has repeatedly emphasized investing in essential businesses that remain critical regardless of market cycles. Meanwhile, Stanley Druckenmiller has often argued that commodity and energy markets can produce enormous investment opportunities when supply-demand imbalances emerge. Ray Dalio has similarly warned that geopolitical fragmentation and inflationary pressures make real-asset exposure increasingly important, especially in strategic commodities tied to energy security. Hedge fund billionaire David Einhorn has also historically favored energy investments when markets underestimate cyclical supply constraints and commodity scarcity.
Recent studies strongly support the bullish case for natural gas. Research published on arXiv in 2026 found that disruptions in natural gas supply can create cascading effects across fertilizer production and global food systems, with the study estimating that under severe trade disruptions, global caloric consumption could fall by as much as 22%, highlighting how strategically important natural gas has become in the global economy.
The investment case for natural gas stocks rests on several major themes: rising global LNG demand, power generation growth, AI electricity consumption, industrial demand, fertilizer production, and energy security. Unlike oil, natural gas is often viewed as a cleaner bridge fuel in the energy transition, making it attractive to both traditional energy investors and long-term infrastructure-focused funds.
With this context in mind, here are some of the best natural gas stocks to buy for transitional power.
Our Methodology
We used stock screeners to identify a list of natural gas stocks and picked out the ones with the lowest short percentage of outstanding shares. We limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds. To make the list easier to navigate, we ranked the stocks in descending order of their short percentage of shares outstanding as of April 30, 2026.
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).
9 Best Natural Gas Stocks to Buy for Transitional Power
9. Enbridge Inc. (NYSE:ENB)
Short % of Shares Outstanding: 1.26%
On May 11, CIBC analyst Robert Catellier raised the firm’s price target on Enbridge Inc. (NYSE:ENB) to C$74 from C$72 while maintaining a Neutral rating. The target increase reflects continued confidence in the company’s long-term energy infrastructure cash flow profile despite evolving market conditions.
The same day, RBC Capital Markets analyst Maurice Choy lowered the firm’s price target on Enbridge Inc. to C$79 from C$80 while maintaining an Outperform rating. The analyst stated that evolving macro conditions for energy infrastructure are creating accelerated growth opportunities with attractive risk-adjusted returns for the company. (Note: the original “C$760” appears to be a typo; C$80 is the likely prior target.)
Founded in 1949 and headquartered in Calgary, Alberta, Enbridge Inc. is a major North American energy infrastructure company engaged in transporting, distributing, and generating energy across pipeline, utility, renewable power, and storage networks.
8. Exxon Mobil Corporation (NYSE:XOM)
Short % of Shares Outstanding: 1.11%
On May 13, proxy advisory firms Glass Lewis and Institutional Shareholder Services recommended that shareholders of Exxon Mobil Corporation (NYSE:XOM) and Chevron vote against certain board-related proposals, including Exxon’s proposed redomicile to Texas, ahead of annual meetings expected to feature close scrutiny of climate and human rights-related shareholder proposals. The recommendations reflect increasing investor governance attention surrounding major integrated energy companies.
Earlier, on May 11, Bernstein Research analyst Bob Brackett lowered the firm’s price target on Exxon Mobil Corporation to $182 from $195 while maintaining an Outperform rating. Bernstein noted that while oil market scenarios remain uncertain, the firm’s updated model assumes a return to more normalized market conditions by mid-year.
Founded in 1870 and headquartered in Spring, Texas, Exxon Mobil Corporation is one of the world’s largest integrated energy and chemical companies, engaged in crude oil and natural gas exploration, refining, petrochemicals, fuels marketing, and specialty chemicals manufacturing.
7. Equinor ASA (NYSE:EQNR)
Short % of Shares Outstanding: 0.90%
On May 11, Banco Santander analyst Alejandro Vigil upgraded Equinor ASA (NYSE:EQNR) to Outperform from Neutral with a NOK 415 price target. The analyst stated that the company stands to benefit from favorable tailwinds tied to a tighter European natural gas market, which could support earnings and cash flow across its substantial gas production and export operations.
Earlier, on May 8, TD Cowen raised its price target on Equinor ASA to $40 from $38 while maintaining a Hold rating. The firm noted that quarterly earnings exceeded expectations, driven by stronger U.S. gas realizations and solid performance across the company’s Norwegian operating portfolio.
Founded in 1972 and headquartered in Stavanger, Norway, Equinor ASA is a broad international energy company engaged in oil and gas production, trading, renewable energy development, offshore wind, and carbon capture initiatives. The company remains majority-owned by the Norwegian government and operates a diversified global energy portfolio.
6. Energy Transfer LP (NYSE:ET)
Short % of Shares Outstanding: 0.90%
On May 13, TD Cowen analyst Jason Gabelman raised the firm’s price target on Energy Transfer LP (NYSE:ET) to $23 from $22 while maintaining a Buy rating. The firm stated that the company raised its fiscal 2026 EBITDA guidance on the back of optimization opportunities, with prevailing commodity prices supporting results near the high end of management’s outlook range.
The same day, Bank of America also raised its price target on Energy Transfer LP to $24 from $22 while maintaining a Buy rating, citing improving upside tied to natural gas liquids and natural gas market strength. Analysts continue to see Energy Transfer as a beneficiary of strong U.S. hydrocarbon production, export demand growth, and favorable midstream infrastructure utilization trends.
Founded in 1996 and headquartered in Dallas, Texas, Energy Transfer LP is among the best natural gas stocks to buy for transitional power. Its infrastructure network includes pipelines, storage facilities, processing assets, and transportation systems handling natural gas, crude oil, natural gas liquids, and refined products.
5. Shell plc (NYSE:SHEL)
Short % of Shares Outstanding: 0.76%
On May 7, Shell plc (NYSE:SHEL) reported first-quarter revenue of $69.69 billion, slightly above $69.23 billion in the same period last year. Management stated that the company delivered strong results despite a quarter marked by significant disruption in global energy markets, driven by continued operational discipline and resilient business performance across its integrated portfolio. Shell also announced the acquisition of ARC Resources, a move management said would accelerate its long-term strategy by adding complementary, high-quality, low-cost liquids and natural gas assets. In addition, the company announced a $3 billion share repurchase program for the next three months and a 5% dividend increase, reflecting management’s continued emphasis on shareholder returns under its capital allocation framework.
The same day, Shell’s board declared an interim first-quarter 2026 dividend of 39.06 cents per ordinary share. Shareholders were also given the option to receive dividends in U.S. dollars, euros, or pounds sterling, underscoring the company’s global shareholder base and ongoing commitment to consistent capital returns.
Founded in 1907 and headquartered in London, England, Shell plc (NYSE:SHEL) is one of the world’s largest integrated energy and petrochemical companies. The company operates across oil and gas exploration, refining, chemicals, LNG, trading, fuels marketing, and renewable energy development.
4. Enterprise Products Partners L.P. (NYSE:EPD)
Short % of Shares Outstanding: 0.76%
On May 20, Morgan Stanley raised its price target on Enterprise Products Partners L.P. (NYSE:EPD) to $43 from $42 while maintaining an Underweight rating on the shares. Although the target increase reflects updated valuation assumptions, Morgan Stanley continues to take a more cautious stance relative to peers as investors assess growth expectations, cash flow sustainability, and valuation levels across the midstream sector.
Earlier, on May 14, Goldman Sachs raised its price target on Enterprise Products Partners L.P. to $39 from $37 while maintaining a Neutral rating. Goldman Sachs noted that the company delivered a better-than-expected quarter, driven by strength in gas marketing and increasingly constructive long-term commentary regarding U.S. energy export demand and global supply dynamics. The firm also pointed to potential upside from operational optimization and macro-driven pricing improvements, while noting that conservative guidance and valuation expectations remain important considerations.
Founded in 1968 and headquartered in Houston, Texas, Enterprise Products Partners L.P. is a North American midstream energy logistics company focused on gathering, processing, transporting, storing, and exporting natural gas, natural gas liquids, crude oil, and refined petrochemical products.
3. BP p.l.c. (NYSE:BP)
Short % of Shares Outstanding: 0.48%
On May 15, BP p.l.c. (NYSE:BP) announced plans to scale back much of its pipeline gas trading team, eliminating approximately 20 roles while integrating remaining personnel into its expanding liquefied natural gas trading business. The move reflects Europe’s continued transition away from Russian pipeline gas toward LNG imports and highlights BP’s efforts to adapt its energy trading operations to changing regional supply dynamics. Management’s restructuring suggests a strategic reallocation of resources toward growth areas within global gas trading markets.
Earlier, on May 11, Argus Research upgraded BP p.l.c. (NYSE:BP) to Buy from Hold following stronger-than-expected first-quarter results. According to the analyst, BP’s earnings beat was driven by higher upstream production, materially improved refining margins, and robust oil trading performance. These positives were partially offset by lower commodity price realizations, but the upgrade reflects improving confidence in the company’s operational momentum and diversified energy platform.
Founded in 1909 and headquartered in London, England, BP p.l.c. (NYSE:BP) is a global integrated energy company engaged in oil and gas exploration, refining, trading, petrochemical production, and energy marketing. Originally founded as the Anglo-Persian Oil Company, BP remains one of the world’s largest multinational energy producers.
2. Canadian Natural Resources Limited (NYSE:CNQ)
Short % of Shares Outstanding: 0.47%
On May 20, Scotiabank analyst Kevin Fisk raised the firm’s price target on Canadian Natural Resources Limited (NYSE:CNQ) to C$74 from C$70 while maintaining an Outperform rating on the shares. The revised target reflects confidence in the company’s operational execution, production portfolio, and ability to generate strong cash flow across changing commodity price environments. Canadian Natural continues to benefit from its diversified mix of crude oil, natural gas, and natural gas liquids production across North America and international assets.
Previously, on May 7, Raymond James Financial upgraded Canadian Natural Resources Limited to Outperform from Market Perform. The upgrade signaled growing confidence in the company’s operational outlook, balance sheet strength, and capital return profile as analysts evaluate energy sector fundamentals and long-term commodity demand trends.
Founded in 1973 and headquartered in Calgary, Alberta, Canadian Natural Resources Limited is a senior independent energy producer engaged in the exploration, development, and production of crude oil, natural gas, and natural gas liquids. The company maintains a broad asset base spanning oil sands, conventional production, offshore operations, and natural gas development.
1. Ecopetrol S.A. (NYSE:EC)
Short % of Shares Outstanding: 0.47%
On May 5, UBS raised its price target on Ecopetrol S.A. (NYSE:EC) to $13.50 from $10 while maintaining a Neutral rating on the shares. The revised target reflects improved valuation assumptions as analysts continue assessing Ecopetrol’s operational performance and exposure to evolving energy market dynamics. As Colombia’s largest energy producer, Ecopetrol remains highly sensitive to crude oil pricing, refining margins, export demand, and broader macroeconomic conditions across Latin American energy markets.
Earlier, on April 30, JPMorgan Chase & Co. analyst Rodolfo Angele raised the firm’s price target on Ecopetrol S.A. to $11 from $9.50 while maintaining a Neutral rating. JPMorgan stated that the updated price target reflects revisions to the company’s financial model as analysts reassessed commodity assumptions, production trends, and earnings expectations. The firm continues to monitor Ecopetrol’s integrated operations across exploration, transportation, and refining as it navigates fluctuations in global oil markets.
Founded in 1951 and headquartered in Bogotá, Colombia, Ecopetrol S.A. is Colombia’s largest integrated energy and petroleum company. The company operates across the hydrocarbon value chain, including upstream oil and gas exploration and production, pipeline transportation and logistics, refining operations, and downstream energy distribution.
