JPMorgan Bets On Natural Gas For 2025: Upgrades ConocoPhillips, Lowers 3 Energy Stocks

While shale oil producers have enjoyed an advantage over gas producers over the past 15 years, the situation is likely to reverse in 2025, according to JPMorgan.

Analyst Arun Jayaram said in a note that natural gas producers are likely to benefit from three “powerful secular demand trends” in 2025:

• The build-out of significant LNG export capacity
• Rising power demand from electrification
• The switch from coal to natural gas

Natural gas prices could remain above $3.50 per MMBtu (Metric Million British Thermal Unit) in the long term, as this price reset to a higher level will be needed to incentivize incremental supply growth from higher-cost gas basins, Jayaram stated.

The Rating Changes

ConocoPhillips (NYSE:COP) – upgraded from Neutral to Overweight.

While the stock has underperformed …

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