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3 Natural Gas Stocks to Buy Now to Power Up Your Portfolio – ReadWrite

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Natural gas markets are under increasing stress in Europe after the Russian invasion of Ukraine. For now, the American gas market is marginally affected. These tensions have raised Europe’s awareness on securing alternative sources of gas supply, even at a premium price. U.S. natural gas markets are well-positioned to benefit from these developments and natural gas stocks will particularly from this situation.

The U.S. natural gas backdrop has been sustained since the beginning of the year. Colder than normal temperatures this winter, weighed on domestic natural gas inventories, causing Henry Hub natural gas prices to rise 31.6% year-to-date to $4.6 per Metric Million British Thermal Unit (MMBtu). 

In the past year, natural gas stocks have outperformed the broader market. The United States Natural Gas Fund LP (NYSEARCA:UNG) surged 61.18% to $16.07 per share since March 2021. In the meantime, the SPDR S&P 500 Trust ETF (NYSEARCA:SPY) advanced only 7.51%% to $416.25 per share.

In this context, let’s look into three natural gas stocks to buy to power up your portfolio.

  • Coterra Energy (NYSE:CTRA)
  • Antero Resources (NYSE:AR)
  • EQT (NYSE:EQT)

Natural Gas Stocks to Buy: Coterra Energy (CTRA)

CTRA stock is a relatively new natural gas producer but it is a large-capitalization company. CTRA stock was formed last year after the merger of Cabot Oil & Gas and Cimarex Energy. CTRA displays one of the most vigorous top-line growth of the large natural gas pure-plays. Net sales are expected to surge 85.3% to $6.93 billion this year and net income is esteemed to advance robustly, up 73.1% to $2 billion.

With this impressive growth trajectory, CTRA stock is forecasted to maintain elevated net margins compared to industry peers. The consensus expects margins to reach 31.4% in 2022 and 29.4% in 2023. In the meantime, Coterra offers ample free cash flow, which is forecasted to nearly double this year, up 91.3% year-on-year to $2.56 billion.

In addition, Coterra Energy has one of the finest balance sheets of the natural gas complex. The leverage ratio of the company, measured by dividing debt with Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) stands at 0.95x at the end of 2021.

In terms of valuation, CTRA stock has one of the most stretched valuations of the peer group, but the ratios are still acceptable given the solid fundamentals of the company. The gas company trades at 2022 EV/EBITDA of 4.08x and P/E of 9.32x. Nonetheless, Coterra delivers an expected dividend yield of 3.64% in 2022, which should not leave shareholders indifferent.

Antero Resources (AR)

AR stock is a mid-cap natural gas producer that is set to benefit from the constructive natural gas backdrop. The company has strong financials and has subdued valuation metrics.

Antero Resources’ net sales advanced robustly in 2021, up 32.3% year-on-year to $4.61 billion. Top-line growth is forecasted to decelerate moderately in 2022, increasing by 21.2% to $5.6 billion. However, AR’s profitability remains comfortable. Net earnings are forecasted to jump steeply this year, reaching a level of $1.13 billion versus a net loss of $187 million in 2021. 

With this fast advance, Antero’s net margin will bounce to 20.1%, a strong figure for a natural gas producer.

More interestingly, AR’s low debt is an asset for future growth prospects. With a net debt of $1.4 billion, representing a leverage ratio of 0.55x in 2022, the natural gas producer has sufficient financial power to develop its activity and finance new projects.

On the negative side, the company hedged 438 billion cubic feet (Bcf) of natural gas, as of Dec. 31, 2021, at a weighted average index price of $2.49 per MMBtu through 2023. This represents approximately 50% of Antero’s yearly production hedged at a significant discount compared to spot prices.

Despite that, Antero Resources trades at a small 2022 EV/EBITDA of 3.65x and P/E of 7.39x. The company even provides a tiny dividend yield of 0.43%. AR stock also announced a share repurchase program of up to $1 billion and plans to redeem remaining Senior Notes due 2025 on March 1, 2022, that are bullish catalysts for the stock.

Natural Gas Stocks to Buy: EQT (EQT)

EQT stock is a natural gas production company focused on the Marcellus and Utica Shales of the Appalachian Basin, with approximately 25 trillion cubic feet equivalents (Tcfe) of total proved natural gas and oil reserves.

The company’s fundamentals are expected to improve significantly this year. The profitability of the natural gas producer surged in the past year, following increasing natural gas throughput and lifting realized natural gas prices. EQT reported an adjusted net income of $1.8 billion for Q4, 2021, compared to only $64 million in Q4, 2020.

Going forward, the consensus of analysts expects EQT’s net sales to advance at a healthy pace in 2022, up 79% to $6.3 billion. Furthermore, EQT’s bottom line is forecasted to bounce robustly from a net loss of 1.15 billion in 2021 to a net gain of $821 million in 2022, representing a double-digit net margin of 15%.

EQT’s balance sheet is not as strong as AR. However, the natural gas producer is currently focusing on reducing debt. Net debt is esteemed to decline nearly 20% in 2022 to $4.31 billion, corresponding to a tolerable leverage ratio of only 1.42x versus 2.3x in 2021.

Besides, EQT hedged approximately 63% of 2022 gas production and less than 15% of 2023 production, which might limit gains this year, if natural gas prices continue to advance. 

In terms of valuation, the natural gas company is exchanging at a low 2022 EV/EBITDA of 4.57x and at a tolerable P/E of 12.1x. 

Cover Image Credit: Loïc Manegarium; Pexels; Thank you!

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Fintech Kennek raises $12.5M seed round to digitize lending

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Google eyed for $2 billion Anthropic deal after major Amazon play


London-based fintech startup Kennek has raised $12.5 million in seed funding to expand its lending operating system.

According to an Oct. 10 tech.eu report, the round was led by HV Capital and included participation from Dutch Founders Fund, AlbionVC, FFVC, Plug & Play Ventures, and Syndicate One. Kennek offers software-as-a-service tools to help non-bank lenders streamline their operations using open banking, open finance, and payments.

The platform aims to automate time-consuming manual tasks and consolidate fragmented data to simplify lending. Xavier De Pauw, founder of Kennek said:

“Until kennek, lenders had to devote countless hours to menial operational tasks and deal with jumbled and hard-coded data – which makes every other part of lending a headache. As former lenders ourselves, we lived and breathed these frustrations, and built kennek to make them a thing of the past.”

The company said the latest funding round was oversubscribed and closed quickly despite the challenging fundraising environment. The new capital will be used to expand Kennek’s engineering team and strengthen its market position in the UK while exploring expansion into other European markets. Barbod Namini, Partner at lead investor HV Capital, commented on the investment:

“Kennek has developed an ambitious and genuinely unique proposition which we think can be the foundation of the entire alternative lending space. […] It is a complicated market and a solution that brings together all information and stakeholders onto a single platform is highly compelling for both lenders & the ecosystem as a whole.”

The fintech lending space has grown rapidly in recent years, but many lenders still rely on legacy systems and manual processes that limit efficiency and scalability. Kennek aims to leverage open banking and data integration to provide lenders with a more streamlined, automated lending experience.

The seed funding will allow the London-based startup to continue developing its platform and expanding its team to meet demand from non-bank lenders looking to digitize operations. Kennek’s focus on the UK and Europe also comes amid rising adoption of open banking and open finance in the regions.

Featured Image Credit: Photo from Kennek.io; Thank you!

Radek Zielinski

Radek Zielinski is an experienced technology and financial journalist with a passion for cybersecurity and futurology.

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Fortune 500’s race for generative AI breakthroughs

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Deanna Ritchie


As excitement around generative AI grows, Fortune 500 companies, including Goldman Sachs, are carefully examining the possible applications of this technology. A recent survey of U.S. executives indicated that 60% believe generative AI will substantially impact their businesses in the long term. However, they anticipate a one to two-year timeframe before implementing their initial solutions. This optimism stems from the potential of generative AI to revolutionize various aspects of businesses, from enhancing customer experiences to optimizing internal processes. In the short term, companies will likely focus on pilot projects and experimentation, gradually integrating generative AI into their operations as they witness its positive influence on efficiency and profitability.

Goldman Sachs’ Cautious Approach to Implementing Generative AI

In a recent interview, Goldman Sachs CIO Marco Argenti revealed that the firm has not yet implemented any generative AI use cases. Instead, the company focuses on experimentation and setting high standards before adopting the technology. Argenti recognized the desire for outcomes in areas like developer and operational efficiency but emphasized ensuring precision before putting experimental AI use cases into production.

According to Argenti, striking the right balance between driving innovation and maintaining accuracy is crucial for successfully integrating generative AI within the firm. Goldman Sachs intends to continue exploring this emerging technology’s potential benefits and applications while diligently assessing risks to ensure it meets the company’s stringent quality standards.

One possible application for Goldman Sachs is in software development, where the company has observed a 20-40% productivity increase during its trials. The goal is for 1,000 developers to utilize generative AI tools by year’s end. However, Argenti emphasized that a well-defined expectation of return on investment is necessary before fully integrating generative AI into production.

To achieve this, the company plans to implement a systematic and strategic approach to adopting generative AI, ensuring that it complements and enhances the skills of its developers. Additionally, Goldman Sachs intends to evaluate the long-term impact of generative AI on their software development processes and the overall quality of the applications being developed.

Goldman Sachs’ approach to AI implementation goes beyond merely executing models. The firm has created a platform encompassing technical, legal, and compliance assessments to filter out improper content and keep track of all interactions. This comprehensive system ensures seamless integration of artificial intelligence in operations while adhering to regulatory standards and maintaining client confidentiality. Moreover, the platform continuously improves and adapts its algorithms, allowing Goldman Sachs to stay at the forefront of technology and offer its clients the most efficient and secure services.

Featured Image Credit: Photo by Google DeepMind; Pexels; Thank you!

Deanna Ritchie

Managing Editor at ReadWrite

Deanna is the Managing Editor at ReadWrite. Previously she worked as the Editor in Chief for Startup Grind and has over 20+ years of experience in content management and content development.

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UK seizes web3 opportunity simplifying crypto regulations

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Deanna Ritchie


As Web3 companies increasingly consider leaving the United States due to regulatory ambiguity, the United Kingdom must simplify its cryptocurrency regulations to attract these businesses. The conservative think tank Policy Exchange recently released a report detailing ten suggestions for improving Web3 regulation in the country. Among the recommendations are reducing liability for token holders in decentralized autonomous organizations (DAOs) and encouraging the Financial Conduct Authority (FCA) to adopt alternative Know Your Customer (KYC) methodologies, such as digital identities and blockchain analytics tools. These suggestions aim to position the UK as a hub for Web3 innovation and attract blockchain-based businesses looking for a more conducive regulatory environment.

Streamlining Cryptocurrency Regulations for Innovation

To make it easier for emerging Web3 companies to navigate existing legal frameworks and contribute to the UK’s digital economy growth, the government must streamline cryptocurrency regulations and adopt forward-looking approaches. By making the regulatory landscape clear and straightforward, the UK can create an environment that fosters innovation, growth, and competitiveness in the global fintech industry.

The Policy Exchange report also recommends not weakening self-hosted wallets or treating proof-of-stake (PoS) services as financial services. This approach aims to protect the fundamental principles of decentralization and user autonomy while strongly emphasizing security and regulatory compliance. By doing so, the UK can nurture an environment that encourages innovation and the continued growth of blockchain technology.

Despite recent strict measures by UK authorities, such as His Majesty’s Treasury and the FCA, toward the digital assets sector, the proposed changes in the Policy Exchange report strive to make the UK a more attractive location for Web3 enterprises. By adopting these suggestions, the UK can demonstrate its commitment to fostering innovation in the rapidly evolving blockchain and cryptocurrency industries while ensuring a robust and transparent regulatory environment.

The ongoing uncertainty surrounding cryptocurrency regulations in various countries has prompted Web3 companies to explore alternative jurisdictions with more precise legal frameworks. As the United States grapples with regulatory ambiguity, the United Kingdom can position itself as a hub for Web3 innovation by simplifying and streamlining its cryptocurrency regulations.

Featured Image Credit: Photo by Jonathan Borba; Pexels; Thank you!

Deanna Ritchie

Managing Editor at ReadWrite

Deanna is the Managing Editor at ReadWrite. Previously she worked as the Editor in Chief for Startup Grind and has over 20+ years of experience in content management and content development.

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