Is Dominion Resources Destined for Greatness?http://www.fool.com/investing/general/2013/09/15/is-dominion-resources-destined-for-greatness.aspx Alex Planes
September 15, 2013
Investors love stocks that consistently beat the Street without getting ahead of their fundamentals and risking a meltdown. The best stocks offer sustainable market-beating gains, with robust and improving financial metrics that support strong price growth. Does Dominion Resources (NYSE: D) fit the bill? Let's look at what its recent results tell us about its potential for future gains.
What we're looking for
What the numbers tell you
How we got here and where we're going
Dominion seems poised to capitalize on a trend toward LNG exports, as the U.S. Department of Energy has recently approved its fourth LNG export facility, located in Cove Point, Md. This will enable the company to export LNG to non-Free Trade Agreement countries across the world, especially India and Japan, which offer huge market potential.
Dominion's Cove Point plant has been approved to export up to 0.77 billion cubic feet of natural gas per day, which will be split evenly between Sumitomo Corporation and GAIL Global. However, Cheniere Energy (NYSEMKT: LNG) is going to be a big challenger in the nat-gas export arena, since its Sabine Pass LNG terminal is expected to be operational by 2015. My fellow Fool Justin Loiseau notes that rival nat-gas exporter Freeport LNG has also filed a request to double its existing export capacity. Freeport LNG already has contracts with two Japanese companies, as well as