Natural gas will have a 'huge impact' on the energy transition. Play the trend with these pipeline stocks

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Cheniere Energy Partners LP Новости

Kinder Morgan,Williams Companies Inc,EQT Corp

Pipeline stocks offer a way to play the upsides of the natural gas business while avoiding the volatility of commodity prices.

Investors who want to support the energy transition should consider backing natural gas as a fuel that can "make a really huge impact" by replacing coal, according to a top analyst at asset manager PGIM. Wind and solar are "growing like gangbusters" but they still face an "Achilles heel" that natural gas can help solve, said Shehriyar Antia, vice president and head of thematic research at PGIM, who recently published a report called "Fueling the Future.

" The analyst pointed to pipeline operators such as Williams Companies and Kinder Morgan , which have gained 21.7% and 12.2% year to date, respectively. Williams Cos. has caught the attention of Wall Street analysts recently, with Argus and Wells Fargo upgrading the company's stock as natural gas demand is expected to rise while coal is phased out and electricity demand increases. Williams has a dividend yield of 4.5%, while Kinder Morgan's yield is 5.8%.

 

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