Gabelli & Company Analyst Timothy Winter says he and his team are positive about the use of natural gas as a fuel. As such, they like the gas utility sector right now.
“An interesting name is National Fuel Gas (NYSE:NFG), which has 800,000 acres of Marcellus and Utica mineral rights, and they have a growing E&P business called Seneca that’s going to drill and produce natural gas,” Winter says.
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National Fuel Gas also has a pipeline and midstream business. Winter says the company is planning to bring gas from the Marcellus into other regions of the U.S., as well as to a hub in Canada.
“They plan to form an MLP out of the midstream business shortly,” Winter says. “So there is upside to National Fuel Gas related to gas prices, the MLP and the development outlook for their pipeline business.”
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