5 LNG Stocks to Capitalizing on the Global Demand Surge

Dear Fellow Investor,

This week we’re talking about the massive opportunity for US (where there’s a glut) natural gas producers to export Liquefied Natural Gas (LNG) abroad.

Fortunately, now that we know global demand for natural gas projected to soar by 2040, there are multiple major energy companies are making significant investments in LNG export infrastructure.

Many of these companies happen to be publicly traded here in the US.

So, without further ado, let’s dive in.

The global LNG market is dominated by both state-controlled and publicly traded companies. While Qatar's Qatargas remains a major player, the U.S. has recently taken the lead as the top LNG producer thanks to the shale revolution.

Here are five publicly traded players for us to choose from:

• Market Cap: $42 billion

• % of Revenues Derived from LNG: 100%

• Trailing P/E ratio: 9.7

Cheniere Energy has established itself as a trailblazer in the U.S. LNG sector, becoming the first company to export LNG from the lower 48 states in 2016. With over $38 billion invested in its infrastructure, Cheniere operates two major LNG facilities along the Gulf Coast—Sabine Pass and Corpus Christi—capable of producing millions of tonnes of LNG annually.

The company’s growth strategy is driven by long-term contracts with foreign buyers, ensuring stable cash flows that are used to expand operations and reward shareholders. Cheniere’s focus on sustainability, including partnerships to deliver carbon-neutral LNG, positions it well in the global energy transition.

• Market Cap: $262 billion

• % of Revenues Derived from LNG: 10 - 15%

• Trailing P/E ratio: 14

Chevron’s LNG portfolio is extensive, with major operations in Australia, Angola, and plans to expand into the Eastern Mediterranean. The acquisition of Noble Energy has given Chevron a significant gas resource off the coast of Israel, which it plans to develop into a floating LNG facility. This strategic expansion aligns with the growing European demand for LNG as the continent seeks to diversify its energy sources.

• Market Cap: $528 billion

• % of Revenues Derived from LNG: 10 - 15%

• Trailing P/E ratio: 14.2

ExxonMobil is one of the largest LNG producers globally, with interests in key projects in Qatar, Papua New Guinea, and the U.S. The company’s strategic focus through 2027 includes increasing its LNG capacity to 27 million tonnes per annum, with the Golden Pass project in the U.S. playing a crucial role. By 2030, ExxonMobil aims to double its LNG output, further solidifying its position in the global market.

• Market Cap: $227 billion

• % of Revenues Derived from LNG: 20-25%

• Trailing P/E ratio: 13

Shell has long been a dominant force in the LNG market, with projects spanning 10 countries and a robust marketing and distribution network. The company’s integrated approach—controlling supply, export, and marketing—allows it to maximize the value of its LNG operations. With new projects in Qatar and Canada, Shell is well-positioned to capitalize on the growing demand for LNG.

• Market Cap: $156 billion

• % of Revenues Derived from LNG: 15-20%

• Trailing P/E ratio: 7.7

TotalEnergies has made LNG a central pillar of its strategy, aiming to supply 50% of its energy mix from gas by 2030. The company’s rebranding in 2021 reflects its commitment to cleaner energy, and its investments in LNG are set to propel it to the forefront of the global market. With ambitious targets and ongoing projects in Mozambique and Nigeria, TotalEnergies is poised for significant growth.

As the world shifts towards cleaner energy, LNG is emerging as a crucial component of the global energy mix. With demand expected to remain strong, the top LNG companies are well-positioned to deliver substantial returns to investors. For those looking to capitalize on the growth of LNG, these stocks offer compelling opportunities.

Tomorrow, we’ll start narrowing our list down with the goal of identifying the very best bet.

To Your Investing Success,

Sean O’Reilly

Disclosure: This content is for educational purposes only and should not be construed as financial advice. Sean O'Reilly may have positions in some of the stocks discussed in this post. Please conduct your own research or consult a financial advisor before making any investment decisions.