4 Top Natural Gas Stocks to Buy in January

After a strong 2019 where the S&P 500 gained nearly 30%, many investors are wondering what's next. One solution is to park your money in solid dividend stocks that provide a guaranteed return in any market. These are the top four natural gas stocks to buy in January, which together, offer a balance of income, growth, and long-term upside.

As a result of the rise of United States energy independence, the U.S. is now the no. 1 producer of natural gas. Founded in 1977, the U.S. Energy Information Administration (EIA) collects and analyzes energy information for the public good. According to the EIA's December 2019 Short-Term Energy Outlook, "annual U.S. dry natural gas production will average 92.1 billion cubic feet per day (Bcf/d) in 2019, up 10% from 2018 ... natural gas production in 2020 will average 95.1 Bcf/d."

U.S. natural gas production reached a new daily production record of 92.8 Bcf/d on Aug. 19, but the EIA warns that the natural gas production grow rate will slow in 2020. That being said, companies that are poised to benefit from strong U.S. supply and growing global demand will make the most out of a good problem: cheap natural gas. Pipeline giant Kinder Morgan (NYSE: KMI) says it expects about 33% growth in U.S. oil and natural gas production by 2025, and that the U.S. will produce about 25% of the world's natural gas by 2025.

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Source: Motley Fool
(January 9, 2020 - 9:06 AM EST)

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