Airgas Opens New Location to Service Bakken Shale Oil Region
Airgas, Inc. (ARG) announced the opening of a new location in Dickinson, ND, in order to enhance its local product and service capabilities in the Bakken shale oil region. Airgas’s superior capability in the energy sector value chain will now be easily accessible by the local energy industry customers.
Airgas offers widespread products and services to the oilfield logistics and operations consumers. The company also provides well completions and production, and pipeline construction and maintenance services.
Consumers can now easily access Airgas’ products and services, including Red-D-Arc’s rental welders and power generation equipment, Specialty Gases’ complex hydrocarbon blends for BTU (British thermal unit) measurement and process stream analysis.
Additionally, customers will be able to utilize Airgas’ On-Site Safety Services comprising safety monitoring, certification and equipment rental services at customer sites in the oilfield and construction industries. The new location will also offer welding-related equipment and safety supplies for in-store purchase or local delivery to the consumers.
The supplier of industrial, medical and specialty gases, and hardgoods, posted first-quarter fiscal 2015 (ended Jun 30, 2014) earnings of $1.18 a share, up 4% year over year. Results came in the middle of management's earnings guidance range. Revenues also rose 3% year over year.
Airgas expects earnings per share in the range of $1.27 to $1.32 for the second quarter of fiscal 2015. Organic sales growth is expected to be in low single digits for the quarter. For fiscal 2015, Airgas reiterated its earnings per share projection in the range of $5.00 to $5.20.
As per the company, residential construction activity is likely to increase in the near future driven by strong growth in rental welder business and increasing demand for staging of materials for energy-related construction projects. In addition, stability in mining and heavy manufacturing sectors will drive sales growth.
Radnor, PA-based Airgas, through its subsidiaries, distributes industrial, medical and specialty gases as a well as hardgoods in the U.S. The company also markets its products and services through e-business, catalog and telesales channels.
Airgas currently carries a Zacks Rank #3 (Hold). Other chemical-diversified stocks worth a look include Johnson Matthey plc (JMPLY), LyondellBasell Industries NV (LYB) and Valhi, Inc. (VHI). All these stocks carry a Zacks Rank #2 (Buy).
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