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MDU Resources (MDU) Taps Bakken Volumes via Expanded Pipeline
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MDU Resources Group Inc. (MDU - Free Report) announced that its subsidiary, WBI Energy Inc, has put the North Bakken expansion pipeline project into service in North Dakota. The intended expansion is consistent with MDU Resources’ strategy to meet the increasing customer demand to transport natural gas in North Dakota. The expansion project has the capacity to distribute 250 million cubic feet of natural gas per day (MMcf/d) but can increase the capacity to 625 MMcf/d in case of a rise in demand from customers.
The North Bakken Expansion project has increased WBI Energy’s pipeline capacity to 2.4 billion cubic feet (bcf) of natural gas per day, which would allow the company to tap the increasing production in the Bakken region and benefit from the same.
The United States Geographical Survey shows that the Bakken formation has a mean estimate of 4.3 billion barrels of undiscovered and technically recoverable oil. In addition, the Bakken Shale has 4.9 trillion cubic feet of associated natural gas in North Dakota. The expected huge volume of reserves in this region will lead to high exploration and production activities enhancing demand for midstream services. MDU Resources’ decision of expanding midstream operation in this prolific Bakken region is going to boost earnings over the long-term.
ATO Energy is investing to increase the safety and reliability of natural gas pipelines consistently. The Zacks Consensus Estimate for ATO Energy’s fiscal 2022 earnings per share (EPS) has surged 7.81% year over year. The long-term (three to five years) earnings growth of ATO is 7.27%. ATO Energy has an average Earnings ESP of 6.46% and a Zacks Rank of #2 (Buy) at present.
National Fuel Gas is also working to expand and modernize the pipeline infrastructure for gaining access to Appalachian production in the United States. The Zacks Consensus Estimate for National Fuel Gas’ 2022 EPS has surged 19.81% year over year. The long-term earnings growth of NFG is 5.41%. National Fuel Gas has an average four-quarter Earnings ESP of 10.67% and a Zacks Rank of #3 (Hold) at present.
The Zacks Consensus Estimate for ONE Gas’s 2022 EPS has surged 5.91% year over year. The long-term earnings growth of ONE Gas is 5%. OGS has an average four-quarter Earnings ESP of 4.42% and a Zacks Rank of #3 at present.
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MDU Resources (MDU) Taps Bakken Volumes via Expanded Pipeline
MDU Resources Group Inc. (MDU - Free Report) announced that its subsidiary, WBI Energy Inc, has put the North Bakken expansion pipeline project into service in North Dakota. The intended expansion is consistent with MDU Resources’ strategy to meet the increasing customer demand to transport natural gas in North Dakota. The expansion project has the capacity to distribute 250 million cubic feet of natural gas per day (MMcf/d) but can increase the capacity to 625 MMcf/d in case of a rise in demand from customers.
The North Bakken Expansion project has increased WBI Energy’s pipeline capacity to 2.4 billion cubic feet (bcf) of natural gas per day, which would allow the company to tap the increasing production in the Bakken region and benefit from the same.
The United States Geographical Survey shows that the Bakken formation has a mean estimate of 4.3 billion barrels of undiscovered and technically recoverable oil. In addition, the Bakken Shale has 4.9 trillion cubic feet of associated natural gas in North Dakota. The expected huge volume of reserves in this region will lead to high exploration and production activities enhancing demand for midstream services. MDU Resources’ decision of expanding midstream operation in this prolific Bakken region is going to boost earnings over the long-term.
Zacks Rank and Price Performance
MDU Resources currently has a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the past year, shares of MDU Resources have rallied 8.1%, underperforming the industry’s 19.7% growth.
Stocks to Consider
Some better-ranked stocks from the same industry are ATO Energy Corp. (ATO - Free Report) , National Fuel Gas Co. (NFG - Free Report) and ONE Gas Inc (OGS - Free Report) .
ATO Energy is investing to increase the safety and reliability of natural gas pipelines consistently. The Zacks Consensus Estimate for ATO Energy’s fiscal 2022 earnings per share (EPS) has surged 7.81% year over year. The long-term (three to five years) earnings growth of ATO is 7.27%. ATO Energy has an average Earnings ESP of 6.46% and a Zacks Rank of #2 (Buy) at present.
National Fuel Gas is also working to expand and modernize the pipeline infrastructure for gaining access to Appalachian production in the United States. The Zacks Consensus Estimate for National Fuel Gas’ 2022 EPS has surged 19.81% year over year. The long-term earnings growth of NFG is 5.41%. National Fuel Gas has an average four-quarter Earnings ESP of 10.67% and a Zacks Rank of #3 (Hold) at present.
The Zacks Consensus Estimate for ONE Gas’s 2022 EPS has surged 5.91% year over year. The long-term earnings growth of ONE Gas is 5%. OGS has an average four-quarter Earnings ESP of 4.42% and a Zacks Rank of #3 at present.