If you haven’t heard, natural gas is at an all time low. Only a few winters ago, I remember the sticker shock each time I received my natural gas bill in the mail. What was supposed to be a cleaner, cheaper fuel was more expensive than electric.
That was then. In 2009, natural gas is cheap. In fact, so cheap that investors are seeing opportunities to profit from the low. I thought I would lay out a couple of ways that you can make money off of natural gas. It’s a definite that the commodity will appreciate in value but when, we don’t know. Many think it will be soon.
The first way is to watch your mail. I received a letter from my natural gas provider giving me the option to lock in my rate for one year. If you get this same letter, sign up! It will save you money down the road unless natural gas continues to drop in price. This doesn’t seem likely, though.
Next, invest in the US Natural Gas Fund. (UNG). This is an etf that tracks the movement of natural gas through futures contracts.
You could also look at Apache. (APA) This dividend paying stock is an upstream provider of natural gas and crude oil. Upstream means that they remove it and send it to refiners.
Chesapeake Energy (CHK) primarily drills for natural gas in its 41,000 natural gas wells. This may be the best play on the rise of natural gas.
Of course, you need to do your own research to decide if one of these plays is right for you. Natural gas is going to make a run up at some point in the near future. Be ready!<–>