3 Beneficiaries of the Shale Gas Boom: KBR, Inc. (KBR)

Chicago, Bridge & Iron Company N.V. (NYSE:CBI)

CBI seems another attractive stock in this space. The company’s guidance for 2013 announced in December last year was a sheer reflection of the growth that the company is soon going to witness. The company raised both its earnings as well as revenue guidance, stating the shale revolution to be one of the main causes of the top and bottom-line improvement. Just like KBR, CBI has been able to win solid projects in all five fields of E&C related to the shale gas boom. CBI’s Dominion project on fractionation, William Geismar project on petrochemicals, Freeport project on LNG exports and Entergy’s Ninemile project on gas power show its strong position in the sector (not to mention its acquisition of SHAW Group, which has enabled it to improve its market share in nuclear maintenance-related work).

Foolish Bottom Line

Goldman Sachs believes that the shale revolution will bring multi-billion dollar investments to the E&C industry. This means that almost every company in this space will benefit from this funds inflow. However, KBR, CBI and Flour remain my top picks for the shale gas beneficiaries.

The article 3 Beneficiaries of the Shale Gas Boom originally appeared on Fool.com and is written by Masam Abbas.

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