Natural Gas Stocks Exploding, as Expected

With historic cold weather expected to chill the U.S., natural gas stocks are on the run, we said just days ago. Now, with even more cold on the way, related stocks could race even higher with snow, ice, wind, and plunging temperatures prompting schools and businesses to close.

“A​n outbreak of arctic cold is sweeping through the Midwest and East, as well as into the Deep South and this frigid pattern is expected to last at least through the middle of January,” added Weather.com. 

With that, natural gas prices – and related stocks could push aggressively higher, including:

Expand Energy Corp. (SYM: EXE)

The last time we mentioned Expand Energy (EXE), it traded at about $100 on January 2. Today, it’s up slight at $102.58 and could race even higher until things warm up outside.

Formerly known as Chesapeake Energy, Expand Energy (EXE) just popped from about $94 to $101.32 and could race even higher with cold weather. EXE was also upgraded to a buy rating by analysts at UBS, who now have a $123 price target. The analysts note that EXE’s “ability to ramp volumes into a rising natural gas price environment is a strategic advantage vs. peers, with at least 1.5B cfe/day of built-up productive capacity.”

United States Natural Gas Fund (SYM: UNG)

UNG is still at breakeven from where we first mentioned it on January 2. Moving forward, we do expect for it to break higher with cold weather expected to last throughout January.

Kinder Morgan (SYM: KMI)

With a yield of 4.2%, Kinder Morgan (KMI) is also an attractive opportunity at $27.40, we also said. Today, KMI is still attractive and could also race higher with the cold weather.

Remember, as we said just days ago, Kinder Morgan is the biggest natural gas pipeline operator with a 40% market share. Two, aside from colder weather, KMI could be a strong beneficiary of the artificial intelligence data center energy boom.

Additional Reading: The unbeatable advantage of AI