While the stocks of many exploration and production (E&P) companies and even the big integrated’s have taken a beating as the price of oil dropped almost 60% in less than a year, there could be one energy area that holds tremendous value. A recent research note from Jefferies made the case that the low-cost gas producers could be a solid investment now, especially with the spot price of natural gas edging above the 50-day moving average for the first time since December.

Jefferies analyst Jon Wolff is bullish on the E&P companies with exposure to low-cost natural gas, and he may be on to something. With many utilities moving to natural gas as a cleaner and more efficient fuel, and another hot summer just around the corner, there could be a big opportunity for investors.

The Jefferies top picks in the sector are: Antero Resources Corp. (NYSE: AR), Cabot Oil & Gas Corp. (NYSE: COG), EQT Corp. (NYSE: EQT), Gulfport Energy Corp. (NASDAQ: GPOR), Range Resources Corp. (NYSE: RRC) and Southwestern Energy Co. (NYSE: SWN).

Antero Resources

This independent natural gas and oil company is engaged in the acquisition, development and production of unconventional liquids-rich natural gas properties located in the Appalachian Basin in West Virginia, Ohio and Pennsylvania.

The consensus estimates show Antero growing in 2015 and in 2016. Analysts see $0.64 in earnings per share (EPS) in 2015 and $1.28 in 2016, on revenue growth of 18% for 2015 and 32% for 2016. Still, those estimates have come down sharply over the past 90 days.

Antero investors are paid a 1% dividend. The Jefferies price target for the stock is $50. The Thomson/First Call consensus price target is at $46.92. The stock closed Friday at $36.03.

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Cabot Oil & Gas

Cabot Oil & Gas is one of the top natural gas names to buy a number of firms on Wall Street. Even in a challenging gas environment, with Cabot shares down a massive 27% over the past year, many believe it has the potential to deliver strong returns and an impressive growth trajectory.

Should U.S. natural gas prices prove to be even better than the strip pricing over the next several years, the company stands to benefit as one of the most levered names in the industry, especially with many predicting that another brutal summer is in store for the country.

Investors are paid a miniscule 0.3% dividend. The Jefferies price target is $29, and the consensus target is $34.69. Cabot closed Friday at $28.69 a share.

EQT

EQT is expected to have a stunning 99% of its production come in as natural gas. The company’s superior cost structure and above-average growth may help it exploit stable and rising natural gas prices. With an increasing reserve structure and a projected higher number of Marcellus wells to be drilled in the coming five years, the company exhibits industry-leading organic growth momentum.

EQT operates in two segments. The EQT Production segment explores for, as well as develops and produces, natural gas, natural gas liquids (NGLs) and crude oil, primarily in the Appalachian Basin. The EQT Midstream segment provides natural gas gathering, transmission and storage services for the company’s produced gas, as well as for independent third parties in the Appalachian Basin.

EQT investors are paid a tiny 0.2% dividend. Jefferies has a $94 price target, and the consensus target is $97.72. EQT closed Friday at $78.92.

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Gulfport Energy

Gulfport Energy’s principal properties are located along the Louisiana Gulf Coast; in the Utica Shale, Eastern Ohio; in the Niobrara Formation, northwestern Colorado; and in the Bakken Formation, Western North Dakota and Eastern Montana.

Deutsche Bank sees Gulfport as one of the best pure plays on the Utica Shale, and the firm also forecast further delineation, downspacing pilots and infrastructure additions leading to higher market implied Utica values, a huge positive for the company.

Jefferies has a $50 price target, and the consensus number is set at $56.61. Shares closed trading on Friday at $46.11.

Range Resources

Range Resources is another top stock to buy for possible gains in natural gas, even though shares have been walloped to the tune of almost 50% over the past year. The company holds interests in developed and undeveloped natural gas and oil leases in the Appalachian and Southwestern regions of the United States. It owns 7,582 net producing wells and approximately 1.4 million net acres under lease in the Appalachian region, and 653 net producing wells and approximately 383,000 net acres under lease in the Midcontinent region.

Range Resources investors are paid a small 0.3% dividend. The Jefferies target is $59, well below the consensus target of $68.73. The stock closed Friday far lower at $49.35 a share.

Southwestern Energy

Southwestern Energy surprised analysts when it actually raised its capital expenditure budget for 2015, and it remains bullish on a rise in natural gas prices in 2015. The company’s exploration and production business has operations in the Fayetteville Shale in Arkansas, the Marcellus Shale in Pennsylvania as well as other plays in Texas, Arkansas and Oklahoma.

The Jefferies price target is $28, and the consensus target is higher at $30.46. Shares closed trading on Friday at $22.60 apiece.

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With natural gas being increasingly relied on by the largest utilities, demand is strengthened through the non-winter months. With the price finally firming, this may be a good time for investors to consider these top stocks to buy.

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