Does the Obama Administration Want You to Buy Natural Gas Pipeline Stocks? Regulation Encourages Generation of Electricity by Natural Gas Fired Plants

Wall Street Transcript

67 WALL STREET, New York - August 26, 2013 - The Wall Street Transcript has just published its Alternative Energy Report. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Grid Parity Timelines for Alternative Energy -Government Subsidies and Regulation - Regulatory Headwinds for U.S. Utilities

Companies include: Duke Energy Corp. (DUK), ITC Holdings Corp. (ITC), Nicor Inc. (GAS), Energen Corp. (EGN), EQT Corporation (EQT), National Fuel Gas Co. (NFG), New Jersey Resources Corp. (NJR), ONEOK Inc. (OKE), South Jersey Industries, Inc. (SJI), Questar Corp. (STR), and many others.

In the following excerpt from the Alternative Energy Report, an expert analyst discusses the outlook for natural gas generated electricity in the United States and the repercussions for investors:

TWST: What are the most important outstanding regulatory issues that you are monitoring for your group right now?

Mr. Muir: Environmental considerations are always something I keep track of. There have been a lot of actions by the EPA over the past few years that have led to many announcements of coal plant retirements and what not to occur over the next couple of years, and as that happens, it is going to put a shift in generation more toward natural gas fired plants. So that being said, the development should benefit gas utilities, both those that just deliver gas, in that they are going to see higher volumes going through their pipelines, and also those natural gas utilities that produce natural gas either in the Marcellus or out in the Rockies or Texas or in the Bakken.

And I do see a lot more EPS growth in the companies that are exposed to natural gas and oil exploration and production. I continue to see a lot of investment in that area with rising volumes helping to produce profits from those divisions, despite recent weakness in natural gas pricing.

Another issue on the regulatory front would be renewable credits and renewable portfolio standards. We haven't seen really any changes in the renewable portfolio standards in the past year or so. But if there is a shift toward a more conservative federal government, then that could obviously delay solar and wind projects...

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

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