Shares of companies that drill primarily for natural gas are poised to outperform their oil-focused counterparts by multiples, according to Bank of America analysts.
Their argument is based on the assumption that future prices of natural gas will equal or exceed the current futures curve, which slopes upward.
Natural gas for delivery this June costs roughly $2.50 per million British thermal units.
Prices for June 2024 and June 2025 gas are about 35% and 57% higher than that, respectively.
Source: https://www.wsj.com/livecoverage/stock-market-today-dow-jones-05-23-2023/card/gas-stocks-set-to-trounce-oil-shares-says-bank-of-america-I0jc3ENGk3V3yItfrRv0?siteid=yhoof2&yptr=yahoo