natural gas, English is Natural gas It is an important Commodity And energy.Invest in natural gas and Invest in oil The same is one item high risk As well as High income investment.
Investment in natural gas is huge and cannot be blindly invested.The natural gas companies or funds listed in this article are the author’s personal sharing and experience, which does not mean any investment advice.
There are the following in the investment of natural gas Characteristic The
- Price fluctuation: The price fluctuations in natural gas are very large, and it is often affected by various factors such as supply and demand, weather, and market emotions.It is not unusual to change 8% within a day.
- Seasonal demand: The demand for natural gas has seasonal fluctuations.Generally Winter demand is the highest, followed by summer, spring and autumn demand low Essence
- National policy: Different countries and regions may have different energy policies, which may affect the supply and demand relationship and price of the natural gas market.
- Natural gas mining status: The mining, transportation and processing of natural gas requires high-level technical support.The investment in natural gas infrastructure in various countries has a huge impact on the long-term price of natural gas prices.
- Diverse investment channels: You can invest in natural gas through a variety of investment channels, such as buying stocks of natural gas mining companies, investing in natural gas ETF (UNG), investment of natural gas futures, options, and MLPS.
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How to invest in natural gas?
In the United States, there are several ways to invest in natural gas:
- Natural Gas Company: Investors can invest in the natural gas market by buying stocks related to natural gas.These companies may be companies engaged in natural gas production, processing, transportation and sales.For example, Chesapeake Energy Corporation, The Williams Companies, Inc., etc.
- Natural Gas ETFS: Investors can also invest in the natural gas market by purchasing natural gas-related exchange trading funds (ETFS) or common funds.These funds usually hold the stocks of natural gas futures contracts or natural gas companies to reflect the performance of the natural gas market.
- Natural gas futures (Futures): Investors can purchase natural gas futures contracts through the futures market and participate in changes in natural gas prices.Natural gas futures contracts are generally based on a certain amount of natural gas to trade in the futures market.
Below, let’s explain in detail the channels for investment of natural gas:
1.Invest in natural gas stocks
The following are some natural gas-related companies that can be purchased in the US stock market:
| Company Name | The natural gas business engaged in |
|---|---|
| CNX Resources Corporation (CNX) | Natural gas development, midstream business, technology companies, mainly in the Abbarachia Basin to collect and produce natural gas |
| Cabot Oil & Gas Corporation (COG) | Natural gas production, focusing on the development of the Marceleus shale |
| Devon Energy Corporation (DVN) | Petroleum and natural gas exploration and production, the event is concentrated in the United States |
| Chesapeake Energy Corporation (CHK) | The production of natural gas, oil and liquid natural gas, and terrestrial drilling activities in the United States |
| Range Resources Corporation (RRC) | Natural gas and natural gas liquid (NGL) are produced. |
| SouthWestern Energy Company (SWN) | Natural gas exploration and production, as well as the market and transportation of natural gas, natural gas liquid and oil |
| EQT Corporation (EQT) | Independent natural gas production company, the event is concentrated in the Abbarachia Basin of Massels and Uteca shale |
| Antero Resources Corporation (AR) | Independent natural gas and liquid company, operate in the Abbarachia Basin |
| Coterra Energy Inc (CTRA) | The development, utilization, exploration, production and marketing of natural gas, crude oil and natural gas liquid |
| Marathon Oil Corporation (MRO) | Independent exploration and production companies, business concentrated in the United States’ unconventional resource zones and equatorial Guinea’s comprehensive natural gas business |
| Concho Resources Inc. (CXO) | Oil and gas exploration and production, business concentrated in the di-stack basin in southeast New Mexico and the West Texas |
| Gulfport Energy Corporation (GPOR) | For exploration and production companies, which are mainly natural gas, Gulfport focuses on exploration, acquisition and production of natural gas, crude oil and natural gas liquid (NGL) in the United States. |
| EOG Resources, Inc. (EOG) | Focus on the exploration, development, production and sales of natural gas, crude oil and natural gas liquid |
| OCCIDENTAL PETROLEUM Corporation (Oxy) | Mainly engaged in the exploration and production of oil and natural gas, and also involved in the manufacturing of chemical products |
| NewField Explration Company (NFX) | It is mainly engaged in exploration, development and production of crude oil, natural gas and liquefied natural gas.The company’s main business scope includes the central mainland of the United States, the Rocky Mountains, the Gulf of Mexico, and China’s maritime oil development. |
| Anadarko Petroleum Corporation (APC) | Mainly engaged in large independent companies in oil and natural gas exploration and production.Its business covers the main natural gas resource zone in the United States, including the development and production activities in the deep-water area of the Gulf of Mexico |
| Williams Companies Inc (WMB) | Its core business involves the treatment and transportation of natural gas, as well as the assets generated by other oil and electricity |
| Kinder Morgan Inc. (KMI) | It operates about 83,000 miles of pipelines and 143 terminals for transporting natural gas, liquefied natural gas, ethanol, biological diesel, hydrogen, refined petroleum products, crude oil, carbon dioxide, etc. |
| ONEOK, INC. (OKE) | Mainly operate liquid natural gas (LNG), and focus on the marketing and related services of natural gas |
It should be noted that stock investment is risky.You need to comprehensively understand the information of the financial conditions, profitability, growth potential, valuation, etc.of the natural gas company, in order to make a relatively correct judgment.
In addition to these natural gas listed companies, there are also a type of company called MLPS.
Natural gas MLPS (Master Limited Partnerships) refers to limited partnerships specializing in natural gas exploration, mining, processing, transportation, storage and other links.They have and operate energy infrastructure, and are responsible for the entire process from natural gas exploration and mining to final delivery to customers.
The structure of the enterprise consists of limited partners and ordinary partners.Among them, ordinary partners are responsible for operation and management, and limited partners provide financial support.The advantage of this corporate structure is that it can achieve tax incentives, and also has a high cash dividend rate and stable benefits.
Investing in natural gas MLPS can obtain dividends and capital appreciation of the natural gas market, and can also enjoy tax discounts.
The following are several natural gas MLPS:
- Kinder Morgan, Inc.(KMI): The company is one of the largest pipelines and storage and transport companies in the United States, operating one of the world’s largest natural gas transportation networks.KMI is responsible for transporting natural gas from the market to the market, and at the same time engaged in natural gas storage and liquefied natural gas (LNG).
- Enterprise Products Partners L.P.(EPD): The company is engaged in natural gas processing, transportation, storage and sales.EPD has one of the world’s largest natural gas storage and transportation systems and operates more than 5,000 miles of natural gas pipeline systems.
- Williams Companies, Inc.(WMB): The company is engaged in natural gas processing, transportation and storage.WMB has a full-process natural gas conveying system from the place of origin to the market, including one of the largest natural gas pipeline systems in North America.
It should be noted that the investment risk of natural gas MLPS is similar to other investment.It also needs to conduct sufficient market research and risk assessment, and formulate reasonable investment plans and risk control strategies.
In addition, investors need to pay attention to tax issues, because the tax processing of natural gas MLPS is different from ordinary stocks, and it is necessary to carefully evaluate before investing.
Investors can pass the American businessmen, such as, Ying Diandai 劵, Schwab, Fidelity, etc., buy natural gas MLPS.Securities brokers usually provide support from investment suggestions, market research and trading services, so that investors can conduct investment operations.
2.Invest in natural gas ETFS
Natural Gas ETF is an exchange trading fund (ETF), which aims to track the performance of the natural gas market.Main include: tracking Natural gas futures contract price ETFS, tracking Natural Gas Company’s stock price ETFS, or the combination of the two.
Natural Gas ETF allows investors to invest in the entire natural gas market through a single transaction without buying a single natural gas futures contract or the stock of natural gas companies.
This fund’s transaction method is similar to ordinary stocks.Investors can buy and sell ETF stocks through the stock exchange, or they can also purchase and redemption outside the exchange.
track Natural gas futures contract price ETFS mainly includes the following, and its investment purpose is to track the recent or long-term natural gas futures prices.
Therefore, you need to have an in-depth understanding of natural gas futures contracts to understand the transaction principles of these ETFS in depth.
For example, the most commonly used UNG, which mainly tracks the price contract price of natural gas, so rolling effect will often occur.
In the futures market, the contract has different expiration date.When a contract is close to the expiration, UNG needs to sell its upcoming contracts and purchase the contract for the next month.This process is called “rolling”.The rolling effect occurs during this conversion, especially when the upcoming contract price is significantly different from the contract price of the next month.
If the contract price of the next month is higher than the upcoming contract (this phenomenon is called “contango”), UNG may suffer losses when rolling its position.Instead, if the contract price of the next month is lower than the upcoming contract (called “Backwardation”), UNG may benefit when rolling.Therefore, the rolling effect will directly affect the performance of the UN fund, which may cause deviation between it and the actual spot price of natural gas.
Therefore, the working principle of ETFS that tracks the price of natural gas futures is very complicated.If you don’t understand, please don’t invest in these ETFS.
These ETFS rises 5 to 10% per day is very common, so the risk is great.
| Natural Gas Futures Contract ETF | ETF introduction |
|---|---|
| United States Nature Gas Fund, LP (Ung) | Tracking the price contract price of natural gas in recent months, doubled, established in 2007 |
| United States 12 MONTH NATURAL GAS Fund LP (UNL) | Following the price contract price of natural gas for nearly 12 months, it was established in 2009 |
| Proshares Ultra Bloomberg Nature Gas (BOIL) | Tracking the price contract price of natural gas in the last month, twice as much as possible |
| Proshares Ultraashort Bloomberg Nature Gas (KOLD) | Used to provide twice a day Reverse income The opposite of the daily benefits of Bloomberg Nature Gas Subindex.This index mainly tracks the performance of natural gas futures contracts. |
In addition to the above-mentioned ETFS that tracks the price of natural gas futures, there are many companies that track natural gas business:
| ETF name/code | ETF introduction |
|---|---|
| First Trust ISE-Revere Nature Nature Gas ETF (FCG) | Tracking the ISE-Revere Nature Gas index, which contains the main natural gas company listed in the United States |
| Alerian MLP ETF (AMLP) | Focus on investing in large energy infrastructure companies that are mainly operated in the United States.Most of these companies exist in the form of MLPS |
| VaNeck Vectors Unconventional Oil & Gas ETF (Frak) | Track the MVIS Global Unconvental Oil & Gas index, the goal is to invest in companies that are mainly engaged in unconventional oil and gas resources, such as shale oil, oil sand, and natural gas liquid. |
| Ishares U.S.Oil & Gas Exploration & Production ETF (IEO) | Tracking Dow Jones U.S.SELECT OIL Exploration & Production Index, reflecting the company with the best performance in the oil and gas exploration and production industry |
| SPDR S & P Oil & Gas Exploration & Production ETF (Xop) | Tracking S & P Oil & Gas Explration & Production Select Industry Index, covering companies listed in the United States and mainly engaged in oil and gas exploration and production activities in the United States, mainly engaged in oil and gas exploration and production activities. |
| Invesco dwa Energy Momentum ETF (PXI) | Track the DORSEY WRIGHT ERIGY Technical Leaders index, which contains an energy company selected based on market performance and momentum |
| INVESCO S & P Smallcap Energy ETF (PSCE) | Tracking the S & P SmallCap 600 Capped Energy Index, which is included in the energy field in the energy field in the S & P SmallCap 600 Index. |
| First Trust Nature Gas ETF (FCAN) | Tracking the ISE-Revere Nature Gas index reflects the performance of companies listed on the US exchange and mainly engaged in natural gas mining and distribution. |
| Ishares Global Energy ETF (IXC) | Tracking the S & P Global 1200 Energy Sector Index, which contains major energy companies worldwide, covering oil and gas exploration, production, refining and marketing and other fields |
| SPDR S & P Oil & Gas Equipment & Services ETF (XES) | Tracking S & P Oil & Gas Equipment & Services Select Industry Index, including companies listed in the United States, these companies are mainly engaged in providing equipment and services for oil and gas exploration, production and transportation |
| Invesco Dynamic Energy Exploration & Production ETF (Pxe) | Tracking Dynamic Energy Explration & Production Intellidex Index, which is based on many factors, such as value, quality, and momentum. |
| Global X MLP & Energy Infrastrus ETF (Mlpx) | Tracking Solactive MLP & Energy Infrastructure Index, which contains companies engaged in transportation, storage and management of energy products, especially oil and natural gas |
| Ishares U.S.Oil Equipment & Services ETF (IEZ) | Track Dow Jones U.S.SELECT OIL Equipment & Services Index, including American companies that mainly provide equipment and services for equipment and services for the oil and gas industry |
| Ishares U.S.Oil & Gas Exploration & Production ETF (IEO) | Tracking Dow Jones U.S.SELECT OIL Exploration & Production Index, including companies that are mainly engaged in oil and gas exploration, mining and production activities in the US market |
| Invesco S & P 500 Equal Weight Energy ETF (Rye) | Tracking the S & P 500 Equal Weight Energy Sector Index, including all the stocks in the energy industry in the S & P 500 index, and each company has the same weight |
| SPDR S & P Oil & Gas Equipment & Services ETF (XES) | Tracking S & P Oil & Gas Equipment & Services Select Industry Index, including companies listed in the United States, these companies are mainly engaged in providing equipment and services for oil and gas exploration, production and transportation |
| Direxion Daily Nature Gas Related Bull 3X Shares (Gasl) | Provide a three-fold leverage effect on the daily income of the tracking index, tracking the IHS Markit North American Nature Gas index, including North American companies that are mainly engaged in natural gas exploration, production, distribution, or providing related services. |
It should be noted that investment ETFs also need to consider market risk and volatility.Investors need to conduct adequate market research and risk assessment before investing, and formulate reasonable investment plans and risk control strategies.
Natural gas ETFs are traded through the stock exchange.Investors can purchase natural gas ETFs through securities brokers, online trading platforms or other financial institutions.
Investors can choose the online trading platform they are familiar with, for example,,, for example, Transparent securities As well as Webull As well as Firstrade Wait for transaction operations.Through these platforms, investors can easily buy and sell ETFs, and at the same time, they can also view relevant information and market conditions.
It should be noted that investment ETFs have market risks and volatility.Investors need to conduct sufficient market research and risk assessment before purchasing, and formulate reasonable investment plans and risk control strategies.At the same time, the cost, transaction volume, and component stocks of ETF also need to be considered to formulate reasonable investment plans and risk control strategies.
3.Investment of natural gas futures (Futures)
Due to the use of high-power leverage (such as 20 times leverage), traders only need to pay a small part of the contract value as a margin to control a large amount of assets.Therefore Futures transaction The risk is extremely great, and people who have been lined up in the futures trading market every day abound.Therefore, please do not blindly conduct futures transactions.
Natural gas futures transactions are the process of buying and selling natural gas futures contracts in the futures market.These contracts are standardized legal agreements, allowing traders to buy and sell a specific number of natural gas at a predetermined price in the future at a specific date.This form of trading is carried out on a special futures exchange, such as the New York Merchant Exchange (Nymex).
Natural gas futures use standardized contracts.Each natural gas futures contract has a fixed contract size (such as 10,000 million British thermal units, MMBTUs), delivery date and quality standards.
Traders only need to pay a part of the contract value as margin to control large contracts.This leverage can increase profits, but also increases potential losses.
Investors who invest in natural gas futures have two main purpose: hedge and investment.
- Hedge: Manufacturers and consumers lock prices through futures contracts to reduce the risk of price fluctuations.
- Speculation: Traders attempts to make profits by predicting market price changes.
Therefore, natural gas contracts can be fulfilled through physical delivery.However, in practice, most of the natural gas futures transactions were closed before expiration, and did not involve physical delivery.
The brokers who provide natural gas futures transactions are as follows:
- Interactive brokers
- Charles SCHWAB
- Fidelity Investments
- E*trade
Here Ying Diandai 劵 For example, the specific steps are as follows:
- Open an account: First of all, you need to register and open an account on the official website of Yingyou Securities.Fill in personal information, including identity proof and financial status.
- Account review: After submitting an account opening application, Yinglou Securities will review your information.This process may take a few days.
- Capital deposit: After passing the audit, you need to deposit funds into your penetrating securities account.You can transfer it through bank transfer.
- Understand the natural gas futures market: Before starting the transaction, you should have a full understanding of the natural gas futures market, including price fluctuations and trading time.
- Choose a trading platform: Yingli Securities provides a variety of trading platforms, you can choose a platform that is suitable for you to trade.
- Start trading: On the trading platform, you can start buying and selling natural gas futures.Pay attention to monitoring market changes and reasonably control risks.
Is it safe to invest in natural gas?
There is a lot of risks in investing in natural gas.However, for experienced investors and investors with sufficient market knowledge, natural gas investment is a high-risk and high-yield investment method.
The volatility and risk of the natural gas market are high, and price fluctuations are affected by various factors, such as weather, seasons, policies, technology, and so on.For example, from 2014 to 2016, the US natural gas prices fell from $ 4.5 per British heat to less than $ 2, resulting in a sharp decline in the stock price of natural gas manufacturers.
In addition, due to certain technical and environmental risks, such as natural gas leakage and environmental pollution, investors need to carefully evaluate relevant risks and influence.
Therefore, any investor needs to develop a reasonable investment plan and risk control strategy through sufficient market research and risk assessment to invest in natural gas.
In short, there are certain risks and volatility in natural gas investment, but for investors with full market knowledge and investment experience, natural gas investment is still a safe investment method.Investors need to conduct adequate market research and risk assessment, and formulate reasonable investment plans and risk control strategies.
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