3 picks for the natural gas boom

"A way to play the increase in LNG demand and delivery from the terminals that already exist, as well as those to be brought on-stream in the next few years, is Teekay LNG Partners, L.P. (symbol TGP).  Teekay LNG Partners generates cash flows from long-term, fixed rate contracts with major oil and utility companies around the world, by transporting LNG via its 32 LNG/LPG carrier seagoing ships and 11 conventional oil tankers." 

Interesting pick.

http://www.investorp​lace.com/2012/04/jui​cy-yields-from-boomi​ng-lng-exports-cop-g​lng-tgp-d/?cc=msnfee​d

I also found CQP which is the energy partner for LNG and actually owns the terminal in Sabine LA (first domestic export terminal scheduled to complete and actually approved thru congress).

Nice yield at 7.62%.

Also, Dominion Resources, D (which check out it's 20, 30 year chart). They are buying up pipeline and investing heavily in new energy resources, so not only is it a power distributor for nice utility yield and protection, it also is able to generate from others who may use their pipelines.

I owned D thru the 2008 collapse, and although it got taken down along with the whole market, it's fall was less than the S&P 500, payed a nice dividend the entire time, and has come right back. Look at the legs from 2009-2012. Has never broken its downtrend once, not in 2011 spring breakdown, not in the 20% market drop last fall, and not this year either. This is one of those "buy and hold" stocks that supposedly no longer exist.

STO, LNG, BRGYY.

STO is a huge buying opportunity. How often do you get US listing access to a company with a strong reserve currency and a strong divided? This is right in the sweet spot. 4.66% yield, just made a huge discovery in oil that is set to replenish their reserves for decades to come, and like Jim mentioned, a play into Natural Gas as well.

With Oil under pressure and every stock in Europe being unfairly nailed regardless of its business, this is a nice stock to own. One caution it just made a lower high than 2011 and came back down, though, it did make a higher low, so it's uptrend is still intact for now.

Like LNG for a few reasons, which it was still 2010 and this stock was still $2. It's frothy at $12 considering it has no income, no dividend. But the one thing it does have is the only approval of any domestic company to build an export terminal. Assuming it is able to maintain access to credit markets (which Corporate debt is well financed currently) it should be able to start exploiting the Natgas difference quicker than anyone else. $2 to produce here, anywhere from $15-25 in the rest of the world. Easy money if they can get it done.

I would add WPRT. Westport Innovations Inc, they specialize in technology to convert engines from diesel/gasoline to Natural Gas. Just recently got into a deal with Caterpillar for offhighway engines. This is like a services play in the oil fields except it doesn't require a high price of Nat Gas to be successful.

Both LNG and WPRT are speculative. But could be one of those set up for split after split after split into the future or just nice price gains. One of those you might wish you pulled the trigger on.

Natural Gas (and in particular it's going to be LNG, liquified natural gas) is going to reshape the future of the energy industry. With governments broke globally, solar power and wind power are on the way out (for who knows how long). Natural gas is cleaner than coal, cleaner than oil, and more abundant domestically. Even without fracking it's still a good bet (in particular in Texas, they aren't going to outlaw fracking in west texas in the Eagleford Shale).

I'm not a fan of playing the big suppliers, Exxon, Chesapeke, etc. Too dependent on having the price much higher than it is now and no export licenses (though, those will come). Exxon has many other segments and Nat gas won't push the stock price, Chesapeke could, but that seems like a broken company right now.

Play the services, the small exporters, or STO for a little bonus to their main business (and because it's a great international stock to have, dollar devalue makes you more, Norway one of the strongest world currencies, huge stable dividend for decades to come).