After hitting 10-year lows last summer, natural gas prices are slowly starting to rise. However, a number of natural gas-heavy E&Ps are still trading significantly below their net asset value. While gas prices are far from their 2007 levels, low-cost producers are able to eke out profits with gas prices at or above $4 per thousand cubic feet.
However, some of the best deals are found in gas companies significantly increasing liquids production. In this video, energy analyst Joel South points out two deeply discounted companies and determines which one is the best investment for your portfolio.
Joel South owns shares of Devon Energy. Taylor Muckerman has no position in any stocks mentioned. The Motley Fool owns shares of Devon Energy and has options on Chesapeake Energy. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.