I have mentioned this Canadian natural Gas supplier in the past TRANSCANADA CORP (NYSE:TRP) and own a few shares in my IRA account. This company has a relatively low PE at 13 and pays a 4% dividend. Even though it is a Canadian company, if you hold shares in an IRA account, no foreign tax is withheld because of an agreement they have with the U.S..
Here is a current analyst report that affirms their price target of $29.50 (http://research.bmonb.com/documents/D1C1F8A3-E8A3-4921-B103-21EAB8E814CB.PDF).
What is of interest today is this announcement: TransCanada Acquires Gas Transmission Northwest Corporation (http://home.businesswire.com/portal/site/google/index.jsp?ndmViewId=news_view&newsId=20041101005959&newsLang=en)
Frim the article:"... The GTN pipeline system consists of more than 1,350 miles (2,174 kilometres) of pipeline extending from TransCanada's facilities near Kingsgate, British Columbia, on the British Columbia-Idaho border, to a point near Malin, Oregon on the Oregon-California border. The natural gas transported on this pipeline originates primarily in Canada and is supplied to customers in the Pacific Northwest, Nevada and California...."
===========================================================
Now they can be a full distributor to the Pacific Northwest, Nevada and California all big growth markets.
Over the last 18 months, I have acquired shares in EP, UGI and TRP in order to have exposure to this industry. I believe both reserves (which EP has) and distribution systems (UGI & TRP) should do well in the next several years. I am still looking for other companies that have undervalued reserves and/or distribution contracts in large geographical growth centers. MRO has a subsidiary pipeline company that distributes to the midwest but that is for oil only not natural gas.
Some have posted their interest in a natural gas play and this is the way I have invested.
EKS |
