Natural gas (distribution)
Article Abstract:
Gas delivery volume increased 3% for local distributors in 1995, largely due to demand from electric utilities and manufacturers. Earnings for the 4th qtr of 1995 will also improve with frigid weather in the colder US areas. A larger customer base will offset a lower allowable rate of return in the 11%-11.5% range, and gas marketing methods are changing. These stocks are defensive and investors should seek quality for dividend growth.
Publication Name: The Value Line Investment Survey (Part 3 - Ratings & Reports)
Subject: Business, general
ISSN: 0042-2401
Year: 1995
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Natural gas (distribution)
Article Abstract:
Gas company dividends were sharply raised in the 1980s and in 1995 are 80% of earnings at some companies. The allowed return on equity was also reduced by state regulatory commissions during the same period, and gas utilities have relied on debt financing as a consequence. Rate planning is changing to advance profits and safeguard dividends. Income investment is difficult in this industry and investors must look for quality.
Publication Name: The Value Line Investment Survey (Part 3 - Ratings & Reports)
Subject: Business, general
ISSN: 0042-2401
Year: 1995
User Contributions:
Comment about this article or add new information about this topic:
Natural gas (distribution)
Article Abstract:
There is greater competition for natural gas distributors with a changed regulatory environment at the federal and state levels over the last 10 years. The Federal Energy Regulatory Commission is transforming pipe lines from resellers to common carriers, and local distribution companies must obtain supplies under new conditions. Investors must choose between higher yields or lower risk when selecting stocks in this industry.
Publication Name: The Value Line Investment Survey (Part 3 - Ratings & Reports)
Subject: Business, general
ISSN: 0042-2401
Year: 1995
User Contributions:
Comment about this article or add new information about this topic: