“With historic cold weather expected to chill the U.S., natural gas stocks are on the run,” we said in early January. Now, with even more cold on the way, related stocks could race even higher with snow, ice, wind, and plunging temperatures.
As CNN just reported, “Dangerously cold conditions will impact millions of Americans and set the stage for widespread disruptions from a winter storm. Arctic air will interact with a storm system moving out of the Rockies to create hazardous winter weather from the Central US to the mid-Atlantic coast. The bitter cold and snow will also complicate recovery efforts in parts of Kentucky, West Virginia and Virginia, where communities are still reeling from a deadly flooding caused by a storm over the weekend.”
With that, natural gas prices – and related stocks could push aggressively higher, including:
Expand Energy Corp. (EXE)
The last time we mentioned Expand Energy (EXE), it traded at about $100 on January 2. Today, it’s up slight at $106.30 and could race even higher until things warm up outside.
Formerly known as Chesapeake Energy, Expand Energy (EXE) just popped from about $94 to $101.32 and could race even higher with cold weather. EXE was also upgraded to a buy rating by analysts at UBS, who now have a $123 price target. The analysts note that EXE’s “ability to ramp volumes into a rising natural gas price environment is a strategic advantage vs. peers, with at least 1.5B cfe/day of built-up productive capacity.”
United States Natural Gas Fund (UNG)
UNG is now up to $20.50 from about $17.05 since early January. Moving forward, we do expect for it to break higher with cold weather expected to get even worse.
Kinder Morgan (KMI)
With a yield of 4.28%, Kinder Morgan (KMI) is also an attractive opportunity at $26.86.
KMI should benefit from the colder weather considering it’s the biggest natural gas pipeline operator with a 40% market share. Also, aside from colder weather, KMI could be a strong beneficiary of the artificial intelligence data center energy boom.

