Energy Crunch Ahead: 3 Natural Gas Stocks Set to Gain

Energy stocks are rebounding from a multi-year slump, but not for the reasons some investors might have expected at the start of the year. The price of crude oil recently fell below $60 per barrel and may stay under pressure as recession fears outweigh geopolitical concerns.

However, the United States faces a multi-year energy crunch driven by three key converging factors:

• Rising electricity demand to support data centers, electric vehicles, and the broader artificial intelligence (AI) infrastructure.
• The need to upgrade the country’s electrical grid after decades of being underfunded.
• Continued global demand for clean energy, as many countries still look to phase out coal.

Natural gas is one fuel source that’s a common denominator for each of those factors. It's sought after as a bridge fuel for a clean energy future. That’s why many investors have been piling into natural gas stocks in the last 18 months. Fortunately, it’s not too late to get involved. These three companies play different roles in the natural gas value chain and have varying degrees of risk for investors.

America’s LNG Growth Engine

Cheniere Energy Inc. (NYSE: LNG) is the largest U.S. exporter of liquefied natural gas (LNG), making it essential to global energy security. The country’s long-term contracts and expansion projects at Sabine Pass and Corpus Christi insulate it from short-term price swings and provide stable cash flows and growth.

LNG stock is up 365% in the last five years, and it’s up around 19% in the last 12 months. It’s been a different story in 2025 with the stock up just over 5%. However, analysts are forecasting the company’s free cash flow (FCF) to grow from $3.13 billion in the trailing twelve-month period to $4.73 billion by the end of 2029.

That suggests that Cheniere Energy stock has significant room for price appreciation. Plus, at around 13x earnings, the stock is trading at a discount to its historic average. Analysts have a consensus Buy rating on the stock with a $263.60 price target that suggests there could be over 16% upside from the stock’s closing price on October 14.

A Vertically Integrated, Under-the-Radar Gas Play

National Fuel Gas Co. (NYSE: NFG) is a diversified energy company engaged primarily in the production, gathering, transmission, distribution and marketing of natural gas. The company operates out of the low-cost, high-production Appalachian Basin, which is essential to U.S. supply growth. NFG’s vertically integrated model means that it owns upstream production and midstream infrastructure that provides natural hedges against price volatility.

The company has an attractive valuation setup, with projected earnings growth of 17%, compared favorably to a forward price-to-earnings (P/E) ratio under 13x. That said, the stock has received some downgrades in recent months, but the consensus price target of $98 offers 16% upside.

But the story of NFG stock isn’t complete without considering the company’s dividend. With 55 consecutive years of dividend increases, National Fuel is part of the select group of stocks known as Dividend Kings that have increased their dividend for at least 50 consecutive years. The 2.53% yield may not impress yield-seeking investors, but it makes up for that with its consistent performance.

The Infrastructure Backbone of U.S. Energy

One advantage of midstream energy companies is that oil prices do not dictate the company’s performance and stock price.

Companies like Kinder Morgan Inc. (NYSE: KMI) act as toll booths for oil and natural gas.

Specifically, Kinder Morgan owns and operates over 80,000 miles of pipelines, through which approximately 40% of U.S. natural gas moves.

This vast network is becoming a strategic asset as gas-filled power plants come online.

At around 22x earnings, KMI stock trades at a discount to its historic average.

Analysts give the stock a $30 price target, which would be an increase of 13% to go along with a dividend with an attractive 4.28% yield.

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The article "Energy Crunch Ahead: 3 Natural Gas Stocks Set to Gain" first appeared on MarketBeat.