If natural gas tanks again, MDU Resources Group Inc (NYSE:MDU) and National Fuel Gas Co. (NYSE:NFG) offer an investor some downside protection through their much more stable utility operations as well as other operating divisions. It should also be noted, most utilities have performed well as investors have been seeking yield. This demand for higher yields still exists, but when investors begin to shun current yield for growth, utilities will be negatively impacted. In this scenario, the diversification of National Fuel Gas and MDU Resources could provide a cushion.
Alex Gray owns shares of MDU Resources Group, Inc. The Motley Fool has the following options: Long Jan 2014 $20 Calls on Chesapeake Energy, Long Jan 2014 $30 Calls on Chesapeake Energy, and Short Jan 2014 $15 Puts on Chesapeake Energy. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. Is this post wrong? Click here. Think you can do better? Join us and write your own!
The article A Diversified Way to Play Natural Gas originally appeared on Fool.com.
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