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 (EQT 0.03%) and Cabot Oil & Gas (CTRA 0.68%) 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.
A look forward to 2014
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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.
