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Demand for natural gas in 2021 is likely to drop per the latest report by the U.S. Energy Information Administration (“EIA”) but we expect the benefits of natural gas usage to continue to drive stocks in the Zacks Utility Gas Distribution industry. Despite the uncertainty caused by the Delta variant, we expect demand for natural gas to recover as we gradually move toward 2022, with vaccines being systematically administered in the United States and an increase in industrial and commercial activities. These distribution companies offer services to transport natural gas from the region of production to millions of consumers across the United States.
ONEOK Inc. OKE with its widespread infrastructure in key production areas and long-term, fee-based commitments is poised to benefit when natural gas production volumes increase to touch normal levels. Steady investments and expanding infrastructure in key production regions will drive the performance of UGI Corporation (UGI), MDU Resources Group Inc. MDU, and Southwest Gas Corporation SWX.
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ONEOK, Inc. (OKE) : Free Stock Analysis Report
Southwest Gas Corporation (SWX) : Free Stock Analysis Report
UGI Corporation (UGI) : Free Stock Analysis Report
MDU Resources Group, Inc. (MDU) : Free Stock Analysis Report
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