Natural Gas Demand Shift Supports JPMorgan's Higher Target for National Fuel Gas (NFG)

National Fuel Gas Company (NYSE:NFG) is included among the 12 Best Income Stocks to Buy Now.

On December 8, JPMorgan analyst Zach Parham raised the firm’s price target on National Fuel Gas Company (NYSE:NFG) to $96 from $95 and kept a Neutral rating on the shares. The change came as JPMorgan updated its ratings and targets across the exploration and production space for its 2026 outlook. The firm points to growing supply-side risks for oil and liquids. At the same time, it says the “long-awaited demand inflection for natural gas has finally arrived.” Parham adds that the scale of crude oil oversupply, combined with the possibility of an end to the Russia-Ukraine conflict in 2026, creates a “double whammy” for lower oil prices.

Earlier in October, National Fuel Gas Company (NYSE:NFG) announced a definitive agreement with CenterPoint Energy Resources Corp., a subsidiary of CenterPoint Energy, to acquire CenterPoint’s Ohio natural gas utility business.

National Fuel will acquire the equity interests in CNP Ohio for $2.62 billion on a cash-free, debt-free basis, subject to customary closing adjustments. The deal values the business at about 1.6x its estimated 2026 rate base of $1.6 billion. Once completed, the transaction brings a dedicated workforce that operates roughly 5,900 miles of distribution and transmission pipelines. The system serves about 335,000 residential, commercial, industrial, and transportation customers, with annual consumption near 60 Bcf of natural gas.

The company expects the transaction to close in the fourth quarter of 2026. The acquisition significantly expands National Fuel Gas Company (NYSE:NFG)’s regulated footprint. It doubles the size of the company’s gas utility rate base and extends operations into Ohio, a neighboring state known for its supportive stance on natural gas and constructive regulatory environment. The added regulated cash flows, paired with National Fuel’s ability to fund growth capital through free cash flow from its integrated upstream and gathering operations, help reinforce its investment-grade balance sheet.

National Fuel Gas Company (NYSE:NFG) distributes and transports natural gas to hundreds of thousands of customers across Western New York and Northwestern Pennsylvania.

While we acknowledge the potential of NFG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 14 Best Pharma Dividend Stocks to Buy in 2026 and 20 Best Performing Dividend Stocks in 2025

Disclosure: None.