Last week, The Atlantic pointed out that New York's energy infrastructure transformed, but nobody really paid attention to the $856 million natural-gas-pipeline expansion. The 20 miles of new pipeline has the capacity to heat 2 million homes, but investors should be focusing on the importance of new end markets for low-cost natural-gas producers in the nearby Marcellus shale. 

EQT Corp (NYSE:EQT) and Cabot Oil & Gas (NYSE:COG) are two low-cost producers that offer tremendous upside for investors. Both producers have decades of inventory in the Marcellus and both are profitable in today's low natural-gas-price environment. With expanding pipeline projects like the New Jersey-New York project, and LNG exports starting in another year, low-cost producers have become even more attractive. 

This segment is from Thursday's edition of "Digging for Value," in which sector analysts Joel South and Taylor Muckerman discuss energy and materials news with host Alison Southwick. The twice-weekly show can be viewed on Tuesdays and Thursdays. It can also be found on Twitter, along with our extended coverage of the energy and materials sectors @TMFEnergy.


Joel South has no position in any stocks mentioned. Taylor Muckerman has no position in any stocks mentioned. The Motley Fool recommends Spectra Energy. 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.