Natural Gas Stocks Show Promise Amid Cold Winter Forecasts

Natural Gas Investment Up? With cold winter conditions boosting demand, natural gas stocks are gaining attention. Industry leaders like Kinder Morgan, ONEOK, and NGL Energy Partners are projected to benefit from this surge.

Date: 12-01-2025

AI Rating: 7

Earnings Per Share (EPS)

ONEOK has demonstrated strong earnings growth with a 14% year-over-year increase in EPS over the past three years, while analysts anticipate a further growth of 17% in the upcoming year. This positive trend could attract investors looking for stable growth in a challenging market.

NGL Energy Partners also projects positive earnings of 11 cents for the full year, which would require significant earnings growth following a negative performance in the first two quarters. This speculative outlook could sway investor decisions, depending on the firm’s ability to meet these targets.

Dividends

Kinder Morgan has established itself as a reliable dividend payer, with a current yield of 4.07% and an expected increase in its dividend to $1.17 per share, marking the eighth consecutive year of dividend increases. This could appeal to income-focused investors.

Stock Performance

ONEOK's stock has demonstrated a sharp increase in value with a previous 76% gain from its 52-week low. Despite recent downgrades, the stock appears to have found support, which may provide an opportunity for investors to buy at a favorable price point as it has a solid consensus price target of $115.

However, the light performance in NGL Energy Partners' recent earnings report could pose a risk for potential investors. If the company cannot deliver the projected earnings growth, it may hinder the stock's appeal.

Stocks: KMI OKE NGL