RE: BP plc (BP)
Closed out my small holding of BP. Will consider buying back in if/when the stock trades below $40.
Increased my MDU Resources Group Inc. (MDU) position by 65%. Their regulated utility units and their pipeline and energy services business both had record quarters due to higher oil prices and lower operating costs. Their construction unit was the poor performer which should benefit from future economic growth (as the stimulus money trickles down into their operations).
The company is invloved in the exploration, development, and production of natural gas and oil resources in the Rocky Mountain and Mid-Continent/Gulf States. They own and operate approximately 3,700 miles of transmission, gathering, and storage lines, as well as own, lease, and operates 33 compressor stations in Montana, North Dakota, South Dakota, and Wyoming. Further, Mountain and Mid-Continent/Gulf States.
The company has no exposure to deep drilling wells in the Gulf and could possibly benefit from BP's tragic accident.
The geographic region MDU operates in has had extensive new capital investment in NG shale well exploration & development. These new wells will require the NG gathering, storage and transportation services that MDU provides. With a forward PE around 12 and a dividend that yields 3%, MDU represents a good GARP stock investment.
EKS |
