Before you can invest in natural gas stocks, it's important to understand how this industry is similar and different from other energy companies, particularly oil companies. Natural gas is similar to oil in that it has to be extracted, processed, and transported. And, like oil companies, you can find upstream, midstream, downstream and integrated (companies that engage in all three categories) companies.
However, the price of the underlying commodity is driven more by factors like the weather. Demand usually rises during winter in the Northern Hemisphere and moves lower during the warmer months. By contrast, oil prices tend to be driven by broader consumer demand factors. That's why crude oil futures are typically higher in the warmer months when travel demand is at its peak.
Like clockwork, natural gas futures have climbed about 20% in the 30 days ending October 10, 2024. And with so much geopolitical uncertainty to consider along with cooler temperatures, it's a good time to look at natural gas stocks.
In this special presentation, we're looking at seven companies involved in various categories that make up the natural gas industry that investors should consider ahead of the winter season.
Click the "Continue to Slide #1" button to view the first company.
