Energy Industry Investor Fundmentals
Energy Utilities that Deliver Natural Gas - Focus on Fundamentals
- Energy utilities delivering natural gas have transparent business models – 2 million miles of natural gas pipe in the ground delivering natural gas from a North American resource base of 1,300 trillion cubic feet.
- Energy utilities delivering natural gas are operating in climates with increased regulatory innovation. Increased use of new rate design strategies allows companies to be more competitive in today’s environment.
- Financial profiles continue to strengthen, with focus on core businesses, sound fundamentals, cost competitiveness and building up balance sheets with improved equity ratios.
- Projected increase in natural gas demand of nearly 25 percent over 20 years translates into earnings growth for energy utilities’ core businesses.
- Dividends always have been key to energy utilities delivering natural gas – current yields average 3 percent, with payout ratios averaging 58 percent. Many companies have paid dividends continuously for over 50 years.
- Total shareholder return for energy utilities delivering natural gas is very competitive in today’s capital markets – a solid dividend yield plus earnings growth of 3 to 5 percent.