Exposure to Commodities: Invest in Natural Gas Companies

Investing in commodities through companies that process natural gas is a positive investment choice because it offers you exposure to this market through the expertise and experience of industry professionals, without the volatility of the futures market. Some natural gas companies are involved in the production of natural gas fields; others are responsible for delivering natural gas directly to consumers.


Here is a list of companies that are fully integrated natural gas companies, which means they’re involved in all the production, development, transportation, and distribution phases of natural gas. Investing in these companies gives you a solid foothold in this industry. Here’s your hit list:



  • Allegheny Energy (NYSE: AYE): Provides natural gas–based electricity to consumers in the eastern United States, primarily in Pennsylvania, Virginia, and Maryland. This S&P 500 company is a good option if you want regional exposure to natural gas production.



  • Alliant Energy (NYSE: LNT): Provides consumers with natural gas and electricity derived from natural gas throughout the United States. This company is a good choice if you want exposure to the North American nat gas market.



  • Nicor Inc. (NYSE: GAS): Nicor’s operations are primarily centered in Illinois, where it provides natural gas to more than two million consumers. This company is another good regional investment.




For a complete listing of companies involved in natural gas production and distribution, look at the American Gas Association website.




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Source:http://www.dummies.com/how-to/content/exposure-to-commodities-invest-in-natural-gas-comp.html

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