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. (NYSE:ENB) 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. (NYSE:ENB) 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 (NYSE:XOM) 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 (NYSE:XOM) 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 (NYSE:EQNR) 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 (NYSE:EQNR) 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 (NYSE:ET) 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 (NYSE:ET) 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.
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