When it's not speaking out against unchecked liquefied natural gas exportation, Dow Chemical (NYSE:DOW) is busy generating excellent margins due to the low cost of one of its most valuable feedstocks: ethane. Compared to oil-based naphtha, ethane provides a considerable advantage for those with access.
Along with Dow, DuPont (NYSE:DD) and LyondellBasell (NYSE:LYB) are two companies that have used this access to their advantage. All three will be reporting earnings this week. Motley Fool analyst Taylor Muckerman expects margins to remain relatively high, but the growth we have seen over the past few years might begin to slow. In addition, he touches on some of the future market dynamics that will likely roll out as the available infrastructure continues to increase. Details can be found in the video below.
Taylor Muckerman has no position in any stocks mentioned. The Motley Fool recommends Enterprise Products Partners L.P. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.