SPECIAL REPORT The Top 7 Stocks for 2024

3 LNG Stocks Expected to Spike by 2030

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  • These LNG companies are for investors who want to buy in before the peak.
  • Cheniere Energy (LNG): It’s an energy company that operates natural gas pipelines in the Southern U.S.
  • Sempra (SRE): They are engaged in natural gas transport as well as electricity generation.
  • Exxon Mobil (XOM): It is the largest energy company that also oversees LNG projects.
lng stocks - 3 LNG Stocks Expected to Spike by 2030

Source: shutterstock.com/Wojciech Wrzesien

Proper energy infrastructure is a vital component of our daily lives. Of the different segments of the energy market, there is liquified natural gas, which is the product of cooling natural gas until it changes from a gas to a liquid. It is much easier to transport because the volume it takes up is roughly 1/600th of what regular natural gas occupies. This efficiency is part of what makes LNG stocks so compelling.

The overall energy market has fallen over this last year, but there are times, such as during 2022, when energy prices drastically increased. So, investors should always look for opportunities in the energy market to make a considerable return possibly.

Below, I discuss three different LNG stocks that continue to grow in the industry.

Cheniere Energy (LNG)

Aerial drone photo of LNG (Liquified Natural Gas) tanker anchored in small LNG industrial islet of Revithoussa equipped with tanks for storage, Salamina, Greece.
Source: Aerial-motion / Shutterstock.com

Cheniere Energy (NYSE:LNG) is a liquified natural gas producer and distributor. Cheniere Energy is the United States’ largest supplier of liquified natural gas and the second in the world behind QatarGas, which the government of Qatar owns. They have multiple pipeline terminals in the southern U.S., including their Creole Trail, Midship, and Corpus Christi Pipeline.

On November 2, they released their earnings results for the third quarter of 2023. It stated that total revenue decreased by 53% compared to the previous year. And they reported a net loss of $2.6 billion for Q3 2022. And for Q3 2023, it was a net income of $2.1 billion. Like other energy companies, Cheniere Energy has seen a reduction in overall sales due to lower natural gas prices within this last year. Still, it’s one of those LNG stocks investors should keep on their radars.

Even with the overall decline in the price of natural gas, Cheniere Energy has seen its share price grow by 24% year-to-date. This company is a robust choice for investors seeking exposure to liquefied natural gas companies.

Sempra (SRE)

A 3D illustration of hydrogen molecules.

Sempra (NYSE:SRE) is an energy infrastructure company. They are a natural gas provider and an electric utility for locations throughout Southern California and Texas. They provide over 3 million people with natural gas services and another 3 million with electricity through multiple methods, including solar and wind energy.

Since last November, their share price has fallen by 9%. They also have a strong dividend yield of 3.29% on an annual basis, which has seen growth for 12 consecutive years, and recently announced a dividend payment of $0.60 per share, which will be paid to investors on January 15.

They reported third-quarter earnings recently, which stated that total revenue fell by 8% and net income grew by 52%. Sempra saw a slight decrease in its electric, natural gas, and energy-related business segments. Their CEO also mentioned that exports for liquified natural gas saw a considerable expansion this quarter.

Exxon Mobil (XOM)

Exxon Retail Gas Location
Source: Jonathan Weiss / Shutterstock.com

Exxon Mobil (NYSE:XOM) is the largest energy company through market cap trading on the stock market. They are engaged in exploring and producing natural gas and crude oil. Their energy and specialty products include petrochemicals, waxes, resins, lubricants, low-carbon fuels, and liquefied natural gas.

Exxon Mobil announced on November 2 that they acquired Denbury (NYSE:DEN), an independent oil and natural gas company with energy properties in Texas, Montana, Louisana, Wyoming, North Dakota, and Mississippi, through an all-stock transaction of $4.9 billion. 

Exxon Mobil has seen its share price fall by 7% over this last year. They have a decent dividend yield of 3.64%, and their previous dividend payout will be given to investors on December 11.

Exxon Mobil is a considerable player in the energy market, and investors should pay close attention to this company when looking at energy markets. However, during this lagging energy industry, investors looking to buy into Exxon Mobil should maybe wait until a more opportune time.

As of this writing, Noah Bolton did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Noah has about a year of freelance writing experience. He’s worked with Investopedia dealing with topics such as the stock market and financial news.


Article printed from InvestorPlace Media, https://investorplace.com/2023/11/3-lng-stocks-expected-to-spike-by-2030/.

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