Investor Perspectives on Natural Gas Utilities
New research by MCR Performance Solutions (MCR) for the American Gas Association (AGA) and the Canadian Gas Association (CGA) shows investstor sentiment towards North American natural gas utilities has risen in recent years. Investor Perspectives on Natural Gas Utilities: A Canadian and United States Review finds that investors view natural gas utilities as attractive investments for maintaining stability in their portfolios while supplying a reliable and predictable return on equity (ROE).
While some investors have a cautious or uncertain view of the natural gas utility industry, most believe that natural gas plays a key role in the safe, secure, reliable, resilient, and affordable delivery of energy, despite regional and strategic differences among industry players. Investors are also beginning to take renewed interest in the sector, attracted to forecasts for gas demand as well as media attention on artificial intelligence (AI) and associated data processing.
In MCR’s view, the gas utility industry’s underlying commercial foundation remains solid. But regional policy challenges coupled with rapidly growing energy demand (and the urgent imperatives of affordability, security, resilience, and reliability) suggest there is potential in considering new commercial avenues—avenues that can both sustain a mature industry and align business strategies with important public policy and social objectives.
Read the full study and fact sheet below:
Read the 2022 report here: Investor Expectations on North American Natural Gas Utilities – 2022