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Can PAA Natural Gas Storage Pump Higher?

Jeremy Bowman
September 28, 2012

Shares of PAA Natural Gas Storage (NYSE: PNG  ) hit a 52-week high today. Let's look at how it got here and whether clear skies are ahead.

How it got here
Founded in 2010 as a limited partnership of Plains All American Pipeline (NYSE: PAA  ) , PNG provides gas storage facilities in Louisiana, Mississippi, and Michigan for a wide range of customers including utilities, pipelines, and producers. The stock has grown steadily with the market rise since the beginning of June as both the S&P 500 and natural gas prices have bounced back.

PNG Chart

PNG data by YCharts

As a commodity business in natural gas storage, PNG is a safer way to play natural gas as there is limited storage space in North America and as capacity begi