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Forbes reported that natural gas prices are presently less than half of what it was three years ago but according to Analyst Faisel Khan, Oneok Inc. (NYSE:OKE) of Tulsa, Okla., and National Fuel Gas Co. (NYSE:NFG) Williamsville, N.Y. are two companies to look out for.
Forbes reported that natural gas prices are presently less than half of what it was three years ago but according to Analyst Faisel Khan, Oneok Inc. (NYSE:OKE) of Tulsa, Okla., and National Fuel Gas Co. (NYSE:NFG) Williamsville, N.Y. are two companies to look out for.
As quoted in the market news:
Khan said Oneok will benefit from its pipeline and storage business as a boom in shale gas drilling increases demand for both services. He expects the company will increase profits by 10 percent per year through 2015. Khan lifted his price target for the company to $75 from $72 per share.
Khan said National Fuel Gas should be able to increase production annually in its Marcellus Shale region by 35 percent. The Marcellus Shale gas is considered to have some of the cheapest production costs in North America at roughly $1 per 1,000 cubic feet. That means it still will be able to generate profits with natural gas prices hovering around $4 per 1,000 cubic feet.
Click here to read the full Forbes report