Since the beginning of 2021, natural gas prices in Europe have increased by 700%. This has brought the continent dangerously close to experiencing a recession. The increase in benchmark interest rates by central banks is further reducing demand. Price changes have been considerably impacted by the conflict between Russia and Ukraine. The G7 nations are looking for methods to negatively affect Russia’s natural gas revenues because those revenues are being used to finance the crisis in Ukraine. This week, a 10-day maintenance period is anticipated for the main pipeline carrying natural gas from Russia to Germany. In Asia and Europe, the cost of natural gas has increased by 60%. The growth of multiple projects is a result of the rise in LNG demand. The expansion of Cheniere Energy, Inc.’s Texas LNG terminal was approved in June.
Insider Monkey highlights the 10 best natural gas stocks to buy now. The largest US and second-largest global producer of LNG is Cheniere Energy, Inc. With Chevron Corporation, the corporation has agreed to supply two million tonnes of liquefied natural gas annually. The target price set by Credit Suisse for EQT Corporation was raised from $41 to $50. Due to higher-than-anticipated natural gas prices in Q2 2022, the analyst increased the company’s estimated cash flow per share from $1.69 to $2.36. On April 28, Wells Fargo changed the stock rating on Kinder Morgan, Inc. from Underweight to Equal-Weight. The analyst also used the sum-of-the-parts valuation method to determine the $21 target price. A $1 billion share buyback program was approved by Southwestern Energy Company. The initiative is anticipated to begin right away and end in December 2023. The corporation aims to have a target leverage ratio of between 1 and 1.5. The stock of Ovintiv Inc. was upgraded by JPMorgan from Neutral to Overweight, and the price target was raised from $56 to $64. Some of the difficulties encountered during the first half of 2022, according to the analyst, should be “in the rearview mirror near term.” For more details, click 10 Best Natural Gas Stocks To Buy Now.
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