National Fuel Gas Co N J (NYSE:NFG)

energy/natural gas

0.6

TMFDeej:

http://caps.fool.com/Blogs/buy-this-dividend-paying/741905

Oversold. PA utility, owns thousands of acres of timber, sitting atop the Marcellus shale. Any rise in Nat.Gas prices will be leveraged here.

Since NFG is in on The marcellus shale i could see a susanTial rise in Their fuTure (keyoard is roken)

Have major land holdings in the Marcellus shale. They own the mineral rights which save them the 8 to 12% royalty other producers have to pay.

Barron's Roundtable 2011 Mario Gabelli's pick

National Fuel Gas [NFG]:

Special Situation: Hidden Assets

Mario Gabelli pick.

Current Price: $67.83

Target Price: $130 ?

I have written about NFG in the past, I believe because I have seen Mario Gabelli's compelling case for the company before. National Fuel Gas is made up of three parts, a Buffalo, NY natural gas utility worth an estimated $19/share, a nat gas pipeline the Marcellus shale region, and some natural gas production, all worth an estimated total of $40/share.

After backing those assets out, the company has a market cap of $2.4 billion versus the potential to reap over $8 billion from the shale gas drilling rights that it owns.

Deej

The Marcellus Shale hidden asset is the elephant in the room for NFG, and on that basis these shares are undervalued by half at $42 per share. I believe natural gas for some reason has been devalued as a transportation fuel, but with a well-developed national network of pipelines, and the coming failure of battery-powered electric cars, the wholesale conversion of our transportation fuel system to natural gas is inevitable. Factory-equipped natural gas powered vehicles will be extremely cost effective and convenient to operate.

National Fuel Gas (NFG) is an intergrated oil/gas company serving 730,000 utility customers in Pennsylvania and New York.
The sum its parts exceeds its share price. The core utility operations are worth $20.00 per share and the pipeline storage segmant another $15.00. they also own valuable tracts of timber, over 130,000 zcres and also manage timber land for others. Back about world war 11, NFG purchased a large amount of land it sits on top of Pennsylvania's Marcellus Shale Region some leased for $5,000 an acre. Management is busy spending aggressively to boost production rates, drilling new wells .
NFG has been paying dividends for 108 years, currently 3.1%.

Gabelli's "sum of parts" analysis shows undervalued by as much as 45%. Marcellus shale acreage owner- this is the big hidden asset.

Natural gas. I believe is more misunderstood than oil. I might ought to put real$ in this one.

The ratio of oil to Nat gas is at all time highs. Either oil comes back down (which i don't think it will) or nat gas prices go back up. I love the whole nat gas sector as a whole right now

barrel of oil will increase dramatically-----res.and commercial dwellings to go green which will increase gas consumption. the cleanest fuel out there.

C&C

Dividend increases are an annual event.

The demand for fosil fuels will continue for at least a decade and beyond until alternative energies can be perfected, infastructures created, and distribution points established. This company owns pllenty of timber rich land along with mineral rights. It is well diversified within the energy industry with its utility, pipeline, exploration, production and storage segments. They have established markets and are competing with established oil and electric markets in the northeast. The potential for new sales and transportation growth is on the horizon considering its continued investments in its pipeline, exporation, production and storage segments.

Gas energy

supercycle