Get ready for a seismic shift in the energy markets! Eric Nuttall, a seasoned Senior Portfolio Manager at Ninepoint Partners, is sounding the alarm for a powerful, multi-year bull market in energy stocks, with a particular focus on natural gas. While some might be caught up in the short-term jitters of oil inventory builds, Nuttall argues that a fundamental change is underway that will reshape the energy landscape.
But here's where it gets controversial... Nuttall believes that the era of easy, abundant oil driven by U.S. shale production is drawing to a close. For years, the surge in shale output lulled the world into a false sense of security, leading to a decline in exploration and development. Now, with global oil reserves at historically low levels relative to demand and OPEC's spare capacity dwindling, the market is poised for a significant price discovery. Nuttall posits that we are entering a "post shale world," where prices of US$50, US$60, or even US$70 West Texas Intermediate (WTI) will simply not be enough to incentivize the necessary production.
And this is the part most people miss: While the oil market faces these fundamental shifts, the natural gas sector is experiencing its own dramatic turn. After a sharp January sell-off due to unseasonably warm weather, historic cold is now blanketing large parts of the United States. However, Nuttall's bullish stance on natural gas isn't just about the weather. He points to a meaningful increase in liquefied natural gas (LNG) demand along the U.S. Gulf Coast, which is projected to make the region a net gas importer by 2030. Coupled with rising power demand from data centers and broader electrification trends, Nuttall identifies US$4 per thousand cubic feet (mcf) as the marginal cost of supply. Prices below this level, he argues, will discourage drilling and push the market into an even deeper deficit.
Eric Nuttall's Top Picks for January 21, 2026, are all in the natural gas sector:
Expand Energy (EXE NASDAQ): As North America's largest natural gas producer, Expand Energy is perfectly positioned to capitalize on the burgeoning natural gas bull market. With over 20 years of production inventory strategically located near major demand centers like Texas's AI hubs and the Gulf Coast's LNG facilities, the company commands premium pricing. At a marginal cost of supply of US$4/mcf, Nuttall sees the stock trading at a 14% free cashflow yield. He projects a fair value of eight times 2027 cashflow, translating to a US$209 target price and a 100% potential upside.
EQT Energy (EQT NYSE): The second-largest natural gas producer in the U.S., EQT boasts operations in the Marcellus Shale. Their ownership of integrated gas infrastructure provides a significant cost advantage, and its inclusion in the S&P 500 makes it more accessible to generalist investors. With more than 20 years of high-quality inventory, EQT is well-positioned to benefit from increased power demand in its operational areas. At US$4 gas, the stock is trading at 6.0X EV/CF and a 12% free cashflow yield, which Nuttall considers a mispricing. His target is eight times 2027 CF, setting a US$75 price target for a 46% potential upside.
Antero Resources (AR NYSE): Antero, another substantial natural gas producer in the Marcellus Shale, has bolstered its inventory through a recent acquisition. While this move temporarily postponed significant shareholder returns until the second half of 2026, the stock offers high leverage to rising natural gas prices. Currently trading at 4.0 times 2027 cashflow and a 15% free cashflow yield at US$4/mcf, Nuttall believes its fair value is seven times 2027 cashflow, leading to a $62 target price and an impressive 88% potential upside.
A Look Back at Past Successes:
Nuttall's track record is notable. His pick, Meg Energy (MEG TSX), was acquired by Cenovus on November 17, 2025, delivering a 35% return (36% total return) from his March 11, 2025, recommendation. Athabasca Oil (ATH TSX) saw a 47% return (47% total return), while Arc Resources (ARX TSX) experienced a slight dip of -1% return (2% total return). The average total return for these past picks was a solid 28%.
Now, let's spark some conversation:
Nuttall's thesis hinges on the idea that the market has underestimated the impact of declining U.S. shale production and the growing demand for natural gas. Do you agree that we are on the cusp of a prolonged bull market in energy, particularly natural gas? Or do you believe the market is overlooking potential headwinds that could temper these gains? Share your thoughts below – we'd love to hear your perspective!
