New Jersey Resources Corp (NJR), Boardwalk Pipeline Partners, LP (BWP): Three Safe Natural Gas Companies for Your Portfolio

Page 1 of 2

The global trend towards greener forms of energy means dark days ahead for coal companies, and better prospects for natural gas firms. While this form of energy isn’t as green as wind and solar, for example, it is much better than coal and oil. Furthermore, it provides you with more security and will likely net you better capital gains than with wind or solar investments.

New Jersey Resources Corp (NYSE:NJR)

Producing energy from natural gas costs about five times more than generating it from crude oil. However, the demand for cleaner forms of energy will be enough to grow profits at natural gas firms. Let’s take a look at three of my top large-cap natural gas companies operating in the United States.

New Jersey Resources Corp (NYSE:NJR) stands to earn substantial profits due to the population increase that is expected in its service area. That includes the wealthier areas of New Jersey Resources Corp (NYSE:NJR). Currently, the business serves about 500,000 people in the wealthy counties throughout the state. The company is largely invested in its natural gas component, which is the foundation on which the firm has managed to succeed. However, the company is also forward-looking and is invested in solar initiatives, which could provide enormous growth in the years ahead as society focuses on renewable forms of energy. While the solar initiatives are currently small-scale, they could help to offset the firm’s falling marketing margin. The green project could also gain favor by regulators, who have shown tremendous support for green projects.
Boardwalk Pipeline Partners, LP (NYSE:BWP) was upgraded on July 10 to “outperform” by Zacks. That’s an improvement from its neutral rating. The price target is $33.90, which is about an 8% potential upside from its current price at around $31.80. On April 30, Credit Suisse analysts upgraded the stock to “neutral” from “underperform.” Also, on April 15, Deutsche Bank analysts raised its price target from $28 to $31.

The company has three flagship pipeline systems, which transport natural gas throughout the United States, particularly in the northeast, midwest and southeast. The pipelines aren’t near full capacity, which gives the firm plenty of room for growth. But the company isn’t restrained to those pipelines, as it also operates 11 underground storage facilities that are located everywhere from Ohio to Texas. Further growth could be in the company’s future, due to its financial backing from Loews Corporation (NYSE:L). The firm has supported Boardwalk Pipeline Partners, LP (NYSE:BWP) in the past with dept and equity financing, and this could help the firm to make acquisitions during a period of consolidation in the market.

Page 1 of 2
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

The 10 Most Peaceful Countries in the World

5 Big Reasons Communism Failed

The 15 Most Famous Carl Icahn Quotes

10 Scary Animals that are Actually Harmless

The 8 Most Famous Singer-Actors in Entertainment

The 10 Longest Wars of All Time

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!