Bank of America reinstates coverage of North American gas-levered E&Ps with a bullish view of natural gas on Monday, supporting its belief that most natgas-levered stocks are undervalued, prompting six new Buy ratings: Antero Resources (AR), ARC Resources (OTCPK:AETUF), Comstock Resources (CRK), EQT (NYSE:EQT), Exelon (NASDAQ:EXC), and Tourmaline Oil (OTCPK:TRMLF).

The long-term outlook for natural gas always seems rosy, at least until a cold winter fails to occur or gas supply rises to the upside, which has made gas a rangebound commodity for 10 years, "leading to a bruised market psychology that's hesitant to fully appreciate the AI/LNG demand growth backdrop," but capital discipline will make 2025 different, BofA says, as "producer discipline has been evident this year and sets up a bullish 2025."

BofA analysts believe the largest U.S. gas names, EQT (EQT) and Exelon (EXC), are trading with "an attractive balance of risk, discounting just $3.20 against a forward curve we see closer to $3.75," while smaller cap, well hedged names CNX Resources (CNX) and National Fuel Gas (NFG) have appreciated most this year, thus meriting Underperform ratings.

Antero Resources (AR) still has upside, BofA says, while Neutral-rated Range Resources (RRC) looks to have already performed, with its lower relative cost structure attracting market attention, and Neutral-rated Gulfport Energy (GPOR) has a slightly better balance of risk, as strong momentum from 2023 waned in 2024.

ETFs: (UNG), (BOIL), (KOLD), (UNL), (FCG)