UBS selects the top stocks in the U.S. natural gas sector

Investing.com – UBS Group (UBS) released its latest U.S. natural gas sector rankings, identifying five standout companies in the current market environment. The analysis covers natural gas producers across different market capitalizations, from large, diversified operators to specialized companies focused on natural gas.

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As investors continue to assess investment opportunities in the domestic natural gas sector, this ranking has emerged. In this space, production levels and price dynamics remain key factors influencing company performance. UBS’s assessment provides a framework for understanding which operators are in a favorable position based on the company’s analysis.

**1. Expand Energy (Nasdaq stock ticker: EXE)- **UBS has named Expand Energy as the top pick in the U.S. natural gas sector. The company is a major natural gas producer with extensive land assets in major U.S. basins.

Expand Energy’s fourth-quarter cash flow per share and free cash flow both exceeded broader market expectations. The company was also hit with a rating downgrade by KeyBanc following leadership changes, while Truist Securities initiated coverage with a Buy rating.

**2. EQT Corporation (New York Stock Exchange stock ticker: EQT)- **EQT Corporation ranks second, maintaining its position as one of the largest natural gas producers in the U.S., with its business concentrated in the Appalachian Basin.

EQT Corporation priced its cash tender offer for senior notes and expanded the size to $1.4 billion. In addition, BMO Capital raised the company’s price target, and Truist Securities also initiated coverage with a Buy rating.

**3. Antero Resources (New York Stock Exchange stock ticker: AR)- **UBS places Antero Resources at number three. The company focuses on developing and producing natural gas, natural gas liquids, and oil from its Appalachian Basin assets.

Antero Resources reported fourth-quarter earnings and revenue that both beat analysts’ expectations, and it completed an $800 million sale transaction of its Utica shale assets.

**4. EOG Resources (New York Stock Exchange stock ticker: EOG)- **EOG Resources is fourth. As a diversified energy company, its natural gas production is part of its broader portfolio of hydrocarbons across multiple regions in the U.S.

In its recent fourth-quarter report, EOG Resources reported earnings per share above expectations, but revenue missed expectations. Mizuho also raised the company’s price target, while Truist Securities initiated coverage with a Hold rating.

**5. Gulfport (New York Stock Exchange stock ticker: GPOR)- **Gulfport Energy ranks in the top five, as UBS’s fifth-ranked company in the U.S. natural gas sector, with its natural gas operations in the Appalachian Basin.

Gulfport Energy announced a $17.2 million stock repurchase and reported mixed fourth-quarter results, with revenue exceeding expectations but earnings per share falling short. Most recently, the company also saw its chief executive officer step down.

UBS’s rankings reflect the company’s assessment of these firms within the U.S. natural gas sector. Each company has a different asset base, production profile, and operating strategy across various domestic natural gas basins.

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