Buy Natural Gas
If a natural gas consumer chooses to buy natural gas from a marketer, the marketer purchases the natural gas (from other sources) and arranges for its delivery to the consumer's natural gas utility, sometimes referred to as a local distribution company (LDC). The LDC charges the consumer (their customer) to deliver the natural gas to the customer's home or business. State utility or public service commissions do not allow an LDC to earn a profit on the sale of the delivered natural gas. Sales of natural gas by marketers are unregulated, and marketers may earn a profit on the sale of natural gas.
buy natural gas
Most natural gas customer choice programs began in the 1990s to promote more competition in local energy markets. Traditionally, LDCs provide natural gas to their customers as part of a bundled service that includes both the cost of the natural gas (sometimes called sales service) and the cost for distributing the natural gas to their customers. In customer choice programs, the volume and price of natural gas purchases may be listed on a customer's bill separately from distribution and other delivery-related services and costs.
The availability and characteristics of existing customer choice programs vary widely. Some states allow all natural gas customers to choose a natural gas supplier, while some limit choice to specific service areas or to a specific category or number of customers. Some states where customer choice is available may not have any or only a few participating marketers.
Many factors affect customer participation, such as the customer's potential to save money and the terms of service. In addition to month-to-month variable rates or fixed rates for longer terms, some marketers offer introductory rates, rebates, budget plans, or capped rates. The potential to earn a profit on natural gas sales influences marketer participation.
Natural gas is turning out to be one of the more popular petroleum fuels in the world right now. This is because when compared to gasoline, diesel, or kerosene, natural gas produces far less carbon dioxide and few other pollutants such as sulfur dioxide. This is part of the reason why the U.S. - one of the world's largest energy consumers - has shifted its energy production to natural gas in a bid to reduce carbon dioxide emissions while still exploiting the massive energy generation potential of petroleum products. In fact, data from the Energy Information Administration (EIA) shows that natural gas was the second most widely fuel in the U.S., accounting for 32% of the energy consumption in 2021. While petroleum was still the largest, it was used mostly for transportation purposes, as natural gas was the dominant fuel of choice in residential, industrial, and commercial use cases. Within the electricity sector, natural gas also led the pack and accounted for 32% of the total usage, and overall, natural gas accounted for 36% of the U.S. primary energy production. Finally, U.S. natural gas production also outstripped usage in 2021.
The dominance of America in the global natural gas supply chain also grew in 2022 in the aftermath of the Russian invasion of Ukraine. Europe, which had come to rely on Russian natural gas was in for a rough time as the Ukraine invasion saw its energy supplies disrupted and highlighted the need to drift away from Russian energy. This became a difficult task since Russia was the world's second largest natural gas producer in 2021, according to data from the BP Statistical Review. However, some progress is being made in this area, with the European Union having earmarked 210 billion euros to completely wean itself off of Russian fuels by 2030.
This plan requires shifting away to non-Russian sources, saving energy, and spending more on renewable energy sources at the same time. Where Russia loses, the U.S. wins and this Cold War adage is also true for the liquefied natural gas (LNG) market. The European search for substitutes has led to America's shores, with data from Kpler showing that as of November 2022, U.S. LNG exporters had boosted their shipments to Europe by a whopping 137% as they ended up supplying more than half of Europe's imported LNG.
Finally, the global natural gas market was estimated to be worth $955 billion in 2022 and will grow at a compounded annual growth rate (CAGR) of 7.3% this year to be worth a little over $1 trillion by the end of 2023 according to The Business Research Company. From 2023 until 2027, the industry is expected to exhibit a CAGR of 7.5% and be worth $1.3 trillion. Some of the top profitable natural gas companies part of our list today are Public Joint Stock Company Gazprom (MCX:GAZP.ME), Coterra Energy Inc. (NYSE:CTRA), and Tourmaline Oil Corp. (OTCMKTS:TRMLF).
We studied the oil and gas industry in detail and sifted out the firms that have the largest market capitalization and rely primarily on natural gas or natural liquids for their products. Then, the net profit for all of these was calculated and they were ranked with this metric after which the top 12 companies were chosen.
Birchcliff Energy Ltd. (TSX:BIR.TO) is a Canadian oil and gas company that is headquartered in Calgary, Canada. The firm's primary interests are located in Grand Prairie, Alberta and it had 1 billion barrels of proven and probable oil equivalent reserves as of December 2021. Through its properties, Birchcliff Energy Ltd. (TSX:BIR.TO) produces several petroleum products such as natural gas, oil, natural gas liquids, and condensate. However, natural gas accounts for the largest share, as during the first three quarters of 2022, it accounted for 62,000 barrels of oil equivalent of production per day out of the total 78,454 boe.
Tourmaline Oil Corp. (OTCMKTS:TRMLF), Birchcliff Energy Ltd. (TSX:BIR.TO), Public Joint Stock Company Gazprom (MCX:GAZP.ME), and Coterra Energy Inc. (NYSE:CTRA) make the cut for the most profitable natural gas companies.
Peyto Exploration & Development Corp. (TSX:PEY.TO) is a pure-play Canadian natural gas company. The firm focuses primarily on extracting natural gas from the reserves found in the Albertan Deep Basin. Peyto Exploration & Development Corp. (TSX:PEY.TO)'s total proven plus probable petroleum reserves stood at 904 million barrels of oil equivalent as of December 2021. It claims to be the fifth largest Canadian natural gas producer and owns 12 gas plants that are capable of 970 million cubic feet of gas per day.
The firm also has a strong climate control policy in action, through which it has reduced greenhouse gas emissions intensity by 28% since 2013. At the same time, methane flaring, which is a controversial practice in the gas production industry, has dropped by a strong 59% since 2013. For the nine months that ended in September 2022, Peyto Exploration & Development Corp. (TSX:PEY.TO) brought in CAD$1.2 billion in revenue Out of this, natural gas accounted for the lion's share, by bringing the company CAD$1.1 billion.
By the end of its third fiscal quarter in September 2022, Comstock Resources, Inc. (NYSE:CRK)'s revenues stood at $1.1 billion for the nine months ending in September. Out of these, $994 million were from natural gas sales. 22 of the 920 hedge funds polled by Insider Monkey during Q3 2022 had held a stake in the company.
For the nine months that ended in September 2022, Range Resources Corporation (NYSE:RRC) sold $3.8 billion of natural gas, natural gas liquids, and oil. Out of these, $3.5 billion were from natural gas and natural gas liquids. Insider Monkey took a look at 920 hedge fund holdings for last year's third quarter to discover that 40 had bought the company's shares.
Southwestern Energy Company (NYSE:SWN) produces and sells natural gas, oil, and natural gas liquids. Out of these, natural gas is the dominant fuel, as it accounted for $7 billion of the $11.6 billion in revenues it brought in year to date September. After digging through 920 hedge fund portfolios for last year's September quarter, Insider Monkey found out that 51 had bought Southwestern Energy Company (NYSE:SWN)'s shares.
ARC Resources Ltd. (TSE:ARX.TO) is a Canadian oil and gas company that was set up in 1996 and is headquartered in Calgary. The bulk of its production assets are also located in Canada and are concentrated in British Columbia and Alberta. The firm revealed at the end of its fourth quarter of 2022 that it had delivered a record average of 359,730 barrels of oil equivalent per day, out of which 61% was natural gas.
EQT Corporation (NYSE:EQT) reported in its third quarter financial results that as of the nine months ending in September 2022, it had generated $9.5 billion in revenue from sales out of which $9 billion came from natural gas. 57 of the 920 hedge funds part of Insider Monkey's Q3 2022 survey had invested in the firm.
EQT Corporation (NYSE:EQT), Public Joint Stock Company Gazprom (MCX:GAZP.ME), Coterra Energy Inc. (NYSE:CTRA), and Tourmaline Oil Corp. (OTCMKTS:TRMLF) make our pick of the world's most profitable natural gas firms.
The California Public Utilities Commission (Commission or CPUC) regulates natural gas utility rates and services provided by Pacific Gas and Electric Company (PG&E), Southern California Gas Company (SoCalGas), San Diego Gas & Electric Company (SDG&E), Southwest Gas and several smaller natural gas utilities. The natural gas services which the CPUC regulates include in-state transportation of natural gas over the utilities' extensive transmission and distribution pipeline systems, gas storage, procurement, metering and billing. The Commission also regulates independent gas storage operators Lodi Gas Storage, Wild Goose Storage, Central Valley Storage, and Gill Ranch Storage.
The overwhelming majority of natural gas utility customers in California are residential and small commercials customers, referred to as "core" customers. Larger volume gas customers, like electric generators and industrial customers, are called "noncore" customers. Although very small in number relative to core customers, noncore customers consume about 65% of the natural gas delivered by the state's natural gas utilities, while core customers consume about 35%. 041b061a72