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.
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.
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.