Natural gas inventories are 7% over the five-year average, and companies providing storage capacity for this abundant domestic resource should be experiencing extreme demand for their services. Nishka Gas Storage Partners (NYSE: NKA) certainly got that memo. The Company is currently operating storage facilities in Alberta, California, and Oklahoma. With expansions currently being either completed or applied for, NKA is preparing for continued supply generation by natural gas exploration and production companies.
It will be worth noting whether other companies in the natural gas storage industry experience strong third quarters like Nishka did. On November 5th, PAA Natural Gas Storage (NYSE: PNG) will be reporting, so that will be one to watch to see if this is a developing trend, or if NKA is a one-off example of a company making the right decisions.