3 Companies to Watch as Natural Gas Stocks Make a Comeback

Don’t look now, but energy stocks are starting to look like compelling investments once again. While crude oil prices have been under pressure, natural gas prices are up over 70% year-over-year—and over 50% in the last three months.

Several catalysts are driving this rally. First, the United States had an early blast of winter weather, driving seasonal heating demand. Second, liquefied natural gas (LNG) exports to Europe remain strong amid ongoing concerns that Russia may cut supply. Third, and most notably, the artificial intelligence (AI) buildout is providing a tailwind for energy prices for years to come.

This benefits natural gas producers who continued drilling even when prices were lower. Their improved balance sheets and production outlooks make them well-positioned heading into 2026. Below are three natural gas stocks to consider as this trend unfolds.

America’s Largest Gas Producer Is Positioned for a Big Run

Expand Energy Corp. (NASDAQ: EXE) may not be a household name to investors, but it stands to be one of the largest beneficiaries of the rising demand for natural gas. EXE stock is up 17.8% year-to-date (YTD) and is on pace to match its 12-month growth of around 23% and its five-year total return of over 267%.

The company was formed after the merger between Chesapeake Energy and Southwestern Energy and is currently the largest natural gas producer in the United States. 

Investors who recall that Chesapeake went through bankruptcy may be cautious about investing in EXE stock. However, Expand Energy has shown improved operational efficiency.

The company expects to achieve $500 million in annual synergies this year and about $600 million next year. That’s expected to boost free cash flow by 30% this year and 20% in 2026.

Supporting the bullish argument, Expand Energy's revenue is up 358% year-over-year (YOY) through the first three quarters of 2025.

Investors may also look sideways at an energy stock with a price-to-earnings (P/E) ratio of 33x—higher than typical energy peers—however, the more important metric may be the whopping 312% earnings growth that analysts are forecasting.

Permian Exposure and Data Center Demand Drive Upside

Diamondback Energy Inc. (NASDAQ: FANG) has lagged the market in 2025, https://www.marketbeat.com/stocks/NASDAQ/FANG/chart/ YTD. However, with a consensus price target of $188.55, analysts see upside of more than 27% from current levels.

The stock has started to recover, rising about 3.8% in the last month following its solid earnings report in which revenue beat estimates by over 11% and earnings per share (EPS) beat by 4.7%.

Reasons to be bullish about Diamondback Energy include its exposure to the Permian Basin and its involvement in the Competitive Power Ventures project, where it has agreed to supply 50 million cubic feet per day to a major 1,350-megawatt power plant.

It is also targeting long-term contracts to fuel data center expansion, a growing demand source for natural gas.

Diamondback Energy continues to prioritize free cash flow growth per share over production growth. As evidence of this, in the company’s Q3 earnings report, it reported a 36% reinvestment rate year-to-date, assuming oil prices in the mid-$60s, underscoring its capital discipline and focus on shareholder returns. 

A Beaten-Down Midstream Giant That May Be Oversold

ONEOK Inc. (NYSE: OKE) presents a more conservative, midstream angle on the natural gas rally. OKE stock is down 30% in 2025, but analysts are bullish, with a consensus stock price of $89.27 offering potential upside of more than 28%.

ONEOK has delivered strong revenue growth in 2025, but investor concerns about the company’s high projected capital expenditures for the current year have weighed on sentiment.

Even though the company is forecasting that level of expense to move lower in the future, some fear it could impact short-term earnings.

However, this stock may now be beaten down to the point of being attractive, particularly with crude oil prices expected to rise in the next 12 to 18 months. With a strong earnings beat and natural gas infrastructure in high demand, OKE stock may represent an oversold opportunity in a rebounding sector. 

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