Kinder Morgan Bullish on Natural Gas: Time to Bet on AR & RRC?
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Energy companies have just started to post first-quarter 2025 results, with Kinder Morgan, Inc. KMI having already reported. In the earnings release and transcript, KMI highlighted that natural gas demand will keep growing strongly in the United States and globally. So, what’s the cleanest, most focused investment to ride the natural gas demand trend? Are Range Resources Corporation RRC and Antero Resources Corporation AR well-positioned to capitalize on the rising demand for natural gas?Kinder Morgan Optimistic on Natural Gas DemandKMI's earnings call transcript for the first quarter of 2025 expressed optimism regarding natural gas demand. The midstream energy player stated that from 60 billion cubic feet per day (Bcf/D) in 2005, natural gas demand in the United States surged to 109 Bcf/D in 2024, indicating a substantial increase of 80% over the two-decade period. Kinder Morgan expects natural gas demand in the domestic market to increase by another 20 to 28 Bcf/D by the end of this decade. The prime reason for the growth is the rise in LNG exports, with Europe and Asia willing to import more gas from the United States.Kinder Morgan also highlighted the increasing need for natural gas power plants with rising electricity consumption from data centers. Gas Explorers & Producers in the SpotlightImproving demand for natural gas will thus be reflective of the higher price of the commodity. In its latest short-term energy outlook, the U.S. Energy Information Administration (EIA) estimated the average natural gas spot price for 2025 at $4.30 per million British thermal units (Btu), almost double than $2.20 per million Btu in 2024.With the pricing environment of the commodity remaining favorable, incentives to explore and produce more of the commodity will rise. Thus, energy companies involved in exploring and producing natural gas are now in the spotlight as they will be able to sell their volumes at higher prices, thereby generating more cash flows for shareholders.2 Stocks to Buy Right AwayRange ResourcesRange Resources is among the top 10 natural gas producers in the United States. In the natural gas-rich Appalachian basin, RRC has a strong footprint. Range Resources boasted that it has enough premium drilling locations in the prolific resource to keep producing gas for more than three decades. Thus, the handsome pricing environment of natural gas is highly beneficial for Range Resources. Notably, RRC, carrying a Zacks Rank #2 (Buy), is likely to see earnings growth of 30.4% when it reports first-quarter 2025 results on April 22.Antero ResourcesAntero Resources is among the top five natural gas and natural gas liquid producers in the United States. In the prolific Appalachian basin, Antero Resources also has a strong presence and claims it has sufficient high-quality drilling locations in this prolific region to sustain gas production for over two decades. With a solid production outlook, #2 Ranked AR is thus well poised to capitalize on rising commodity prices. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Range Resources Corporation (RRC): Free Stock Analysis Report Kinder Morgan, Inc. (KMI): Free Stock Analysis Report Antero Resources Corporation (AR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks
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