I'm partial to Bakken oil plays, and I favor MDU for a somewhat conservative way to play the development of this area.
MDU has a subsidiary that acquires Bakken land, and explores for oil/gas there and other areas. I hold several companies that do that.
However, what makes MDU more conservative (maybe) than other e&p companies with Bakken properties or small-cap e&p's focused solely on Bakken, is that:
MDU has a natural gas pipeline network in the Bakken.
MDU has a construction business and an asphalt/aggregate/concrete business that might, maybe, prosper with build-out of the Bakken, if that area does develop the potential that maybe exists there.
MDU has utility operations (serves, according to Yahoo "... approximately 122,000 residential, commercial, industrial, and municipal electric customers in 177 communities; and approximately 829,000 residential, commercial, and industrial natural gas customers in 333 communities."
MDU is not only a Bakken play. It has operations in TX, CO, LA and offshore GOM.
MDU provides me a dividend while waiting. $.63/$18.00 = 3.5%, at today's price. "Dividend increased in November 2009, marking the 19th consecutive year of dividend increases", according to MDU website.
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In other words, yes, I too added a little to my MDU position on todays fall. |
