Top Natural Gas Stocks for 2014

Photo credit: Clean Energy Fuels

There are a number of ways to invest in America's natural gas boom in 2014. One of the best ways to play natural gas stocks in 2014 is by investing in low-cost Marcellus Shale-based production. Another way to play top natural gas stocks in 2014 is to invest in those drilling into the emerging Utica Shale. That said, there are plenty of other ways to play the boom that don't involve investing in a natural gas driller. With that in mind, here are some of the top non-producing natural gas stocks for 2014.

Top natural gas stock to fuel our food
Cheap natural gas prices have burned investors in natural gas producers over the past few years. However, cheap natural gas is really good for heavy users like nitrogen producers. In fact, it has fueled quite a run in the shares of CF Industries Holdings, (NYSE: CF  ) as its stock is up nearly 400% over the past five years. Natural gas also fueled CF Industries' dividend, which was recently boosted by 150%.

The company is investing heavily to build new capacity in order to take advantage of cheap natural gas. That'll not only create more profits for CF Industries, but it will help American farmers as they'll be able to buy cheaper American-made nitrogen for their crops. Bottom line, CF Industries is one of the top stocks for investors looking to invest in a heavy producer of natural gas and profit from the abundances of that resource.

Top natural gas stocks to fuel our economy
Cheap natural gas is also fueling our economy as more trucking companies make the switch from expensive, dirty diesel to cheaper, cleaner natural gas. The two companies really driving that trend are Clean Energy Fuels Corp (NASDAQ: CLNE  ) and Westport Innovations (USA) (NASDAQ: WPRT  ) . Both are top stocks for investors looking to play the consumption part of the natural gas boom in 2014.

Clean Energy Fuels is building America's Natural Gas Highway in order to lay the infrastructure necessary to make the switch easier for America's trucking fleets. That move appears to be working as its customers ordered 70% more natural gas vehicles in the first nine months of 2013 than they did over the same period of 2012. That trend doesn't appear to be ending as the industry sees more than 10,000 Westport Innovation-designed truck engines being delivered in 2014. That's up substantially from the 2,400 projected for 2013. Bottom line, the tandem of Clean Energy Fuels and Westport Innovations makes a great way to play the natural gas boom in 2014 and beyond.

Top natural gas stocks to fuel the world
While companies like CF Industries, Clean Energy Fuels, and Westport Innovations all work on increasing domestic consumption, there are several top natural gas stocks working on getting more American natural gas into the world markets. Both Cheniere Energy, (NYSEMKT: LNG  ) and Chart Industries (NASDAQ: GTLS  ) are playing vital roles to increase America's natural gas exports. Chart Industries is a leader in supplying the equipment critical for liquefying natural gas so it can be exported as well as used as a transportation fuel in the U.S. Meanwhile, Cheniere Energy is working to build two LNG export facilities along the Gulf Coast. Both are great pure plays on America's potential natural gas export boom.

Investor takeaway
There are many ways that investors can play the consumption side of natural gas. It's actually a great hedge for investors who own a top natural gas producer as these stocks profit from low natural gas prices. Best of all, the more American natural gas we use, the less oil we'll import from OPEC. 

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  • Report this Comment On January 20, 2014, at 10:38 AM, DoubleFelix wrote:

    The "boom" is not all that when we talk about transportation (e.g. Clean Energy and Westport). It is happening in various niches, but not to degree that will make any of this profitable, or will fund the necessary build-out of the gas distribution infrastructure.

    Just this week, both Cummins and Westport have each killed the projects they had going to push natural gas for the 15 liter engine. That is a clear indication there just isn't any demand for that . There is some demand for the mid-sized engines that are used in bus fleets and smaller trucks. but not enough for Westport to ever make a profit.

    Meanwhile, there is still a debate about whether the distribution should be CNG or LNG, and that's a pretty important question to answer because the infrastructure costs are enormous, and nobody can afford to build out the wrong one. It isn't clear the market will ever support both modes.

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