New Jersey Resources Corp (NJR), Boardwalk Pipeline Partners, LP (BWP): Three Safe Natural Gas Companies for Your Portfolio

Atmos Energy Corporation (NYSE:ATO) looks set to fluctuate in the days ahead. On July 12, the firm announced it would purchase two southwest natural gas systems. The buys received approval on July 11 from the Mississippi Public Service Commission for the purchase of the gas systems in the communities of Bude and Meadville. The purchases only total 470 new customers. While Atmos Energy Corporation (NYSE:ATO) has leased and operated the systems since 1987, the purchase will likely save the company a small amount money because instead of leasing, the firm has now accumulated the assets. While the purchase won’t affect the company’s bottom line too much, it shows the trust the firm has gained with regulators. That relationship puts the company at an advantage, because it limits the regulatory risk associated with its projects.

Exports also mean profit potential

While these companies look to make gains domestically, I also believe there is an upcoming surge in liquefied natural gas exports. According to Money Morning, that boom is already happening. Natural gas exports to Mexico have increased by 160% since 1990, and gas use in the nation has increased by 17% since 2007. The growing demand domestically for natural gas, coupled with increased global demand, are enough to keep these natural gas firms profitable for many years ahead.

Phillip Woolgar has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Phillip is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

The article 3 Safe Natural Gas Companies for Your Portfolio originally appeared on Fool.com is written by Phillip Woolgar.

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