Natural gas prices are rallying on rising demand. Analysts expect the rally to extend to this winter. Hence, it could be wise to invest in fundamentally strong natural gas stocks Western Midstream (WES), APA Corporation (APA), and PDC Energy (NASDAQ:PDCE).Natural gas prices have more than tripled in Europe and Asia, reaching record highs this year. The benchmark U.S. natural gas contract has rallied to $5.62 per million British thermal units (mmBtu), reaching seven-year highs.
Analysts expect the upcoming winter season to lead to further price increases. In addition, the floating liquefied natural gas (LNG) market is expected to grow at a CAGR of 6.1% between 2021 and 2025 to $4.68 billion.
Given this backdrop, fundamentally sound natural gas stocks, Western Midstream Partners, LP (NYSE:WES), APA Corporation (APA), and PDC Energy, Inc. (PDCE) are expected to continue to see gains in the near term.