Industrial gas producer and supplier,
) announced to have initiated construction of a new nitrogen
plant at its facility in Kirtland, New Mexico. The plant will be
the second of its kind at this facility and together with a
liquefier expansion will be completed before the end of year
Total capacity of liquid nitrogen, after the completion of this
facility, at Praxair's Kirtland facility will reach 300 tons per
day. The company will use liquid and gaseous nitrogen to satisfy
the growing needs of its customers, primarily the local oil and
gas operators, in the San Juan basin including southwestern
Colorado and northwestern New Mexico.
We find the growth prospects of oil and gas exploration and
production market very bright, especially in the backdrop of
soaring demand for oil and gas. According to the Energy
Information Administration (EIA), global oil consumption is
expected to grow by another 1.1 million barrels per day in 2013
and by a further 1.2 million barrels per day in 2014.
Praxair's world class technology, high quality products and gas
supply services have enabled expansion in various fields. This
includes supplying liquid gases including oxygen, nitrogen and
argon to non-ferrous metal, wastewater treatment and shipbuilding
industries, among others.
The current Zacks Consensus Estimate for Praxair for years 2013
and 2014 are pegged at $5.96 and $6.71, reflecting annual growth
of 6.9% and 12.6%, respectively.
Praxair has a market capitalization of roughly $34.6 billion and
bears a Zacks Rank #3 (Hold). Other stocks to watch out for in
the industry are
Cytec Industries Inc.
Eastman Chemical Co.
Northern Technologies International Corp.
), each with a Zacks Rank #2 (Buy).
CYTEC INDS INC (CYT): Free Stock Analysis
EASTMAN CHEM CO (EMN): Free Stock Analysis
NORTHERN TECH (NTIC): Free Stock Analysis
PRAXAIR INC (PX): Free Stock Analysis Report
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