Natural gas focused company,
) reported that its affiliate Questar Fueling Company is planning
to construct a compressed natural gas (CNG) fueling station in
San Antonio, Texas. Questar expects the facility to be online by
this summer. This station is going to be the second CNG fueling
facility in Texas as the company has already opened its first
unit in Houston, Texas last year.
ATMOS ENERGY CP (ATO): Free Stock Analysis
MDU RESOURCES (MDU): Free Stock Analysis
QEP RESOURCES (QEP): Free Stock Analysis
QUESTAR (STR): Free Stock Analysis Report
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The facility is expected to serve Central Freight Lines operated
60 class-8 natural gas-powered trucks. In addition, it will
support other trucking fleet and public vehicles running on CNG.
Every year, Central Freight Lines is believed to consume over 1
million diesel-gallon equivalents of natural gas.
The trucking industry is now switching to CNG, as it is
environment friendly and cheaper than petrol or diesel. Hence,
Questar expects its second CNG fueling station to generate
significant cash flows for shareholders.
Founded in 1922, Salt Lake City, Utah-based Questar Corporation
has three principal subsidiaries - Wexpro Company, Questar
Pipeline and Questar Gas Company. In Jun 2010, Questar completed
the spin-off of its unregulated exploration and production
business as well as its gas gathering and marketing segment into
a separate, independent and publicly traded company,
QEP Resources Inc.
Questar, after the QEP Resources spin-off, has transformed itself
into a natural gas-operated energy company, which focuses
exclusively on exploring natural gas resources while serving
customers domestically and worldwide. The company is expected to
perform well in the coming quarters given its focused and
experienced managerial team, manageable debt maturities and
Questar currently carries a Zacks Rank #2 (Buy), implying that it
is expected to outperform the broader U.S. equity market over the
next one to three months.
One can also consider other players in the utility gas
distribution sector like
Atmos Energy Corporation
MDU Resources Group Inc.
). Both the stocks sport a Zacks Rank #2.