This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Trying to Profit From the Next Phase of the Natural-Gas Boom

NEW YORK ( TheStreet) -- With Cheniere Energy (LNG) ready to open the U.S. for natural-gas exports in late 2015, the next phase of the U.S. natural-gas boom has begun.

The initial phase of the natural-gas boom in the U.S. produced a glut of gas and low prices. Now the business will be built on high prices, with gas becoming an export product and with premiums paid for natural gas that can be shipped overseas. 

Savvy investors should focus on natural-gas producers that can reach the export market and look carefully at where companies that provide pipelines and other infrastructure are expanding their networks.

>>Read More: Credit Suisse Makes Energy Transfer Equity Top Energy Pick of 2014

Cheniere is an example of a company poised to capitalize on exports. Its stock has more than doubled during the past year on the prospects of it being able to export natural gas from its terminal near the Texas-Louisiana border. Cheniere is developing the capacity to liquefy the gas at the terminal so that it can ship the gas overseas.

Meanwhile, Chesapeake Energy (CHK) CEO Aubrey McClendon is concentrating his new company, American Energy Partners, on leases in areas such as Ohio's Utica Shale, where there are plenty of pipelines available to send the gas to ports and eventually to global markets.

Chesapeake itself is spinning out its drilling operations as Seventy Seven Energy, which will trade under the ticker symbol SSE. The company will give investors a new pure play in oil and gas production.

The promise of exports is also increasing investment in natural-gas pipelines.

Pipeline owner Kinder Morgan Partners (KMP) has seen its stock recover from March lows on the strength of new projects to supply gas from the Marcellus Shale, a rock formation in the Northeast, and from gas fields in Texas.

The company is also increasing its gas-carrying capacity between Texas and fields in the Northeast, including the Utica Shale, as it pursues its own gas export terminal.

Apache Corp. (APA) is another company that may become a great play in the new gas era. Apache is spending $8.5 billion this year, selling foreign and offshore fields in favor of onshore gas projects.

Technology Apache funded at Rice University could even create a second profit center from gas, in the form of a carbon compound that can sweep carbon dioxide from a natural-gas well. The gas collected through the compound could be injected into wells to produce more methane or sold for use in products such as dry ice, rather than being wasted.

>>Read More:

In About Face, U.S. Supports Vietnam in Oil Dispute With China

Apple and Nintendo: A Match Made in Purgatory

Super Mario Gabelli of Gamco the King of M&A as Hillshire Deal Shows

At the time of publication, the author owned no shares in companies mentioned in this article.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,279.74 +13.75 0.08%
S&P 500 2,010.40 -0.96 -0.05%
NASDAQ 4,579.7890 -13.6380 -0.30%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs