Energy Industry Investor Fundamentals

 

Energy Industry Investor Fundamentals

 Energy Utilities that Deliver Natural Gas - Focus on Fundamentals 

  • Energy utilities delivering natural gas have transparent business models – 2.4 million miles of natural gas pipe in the ground delivering natural gas from a strong North American resource.
  • 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.
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