Questar Fueling Company, an affiliate of the natural gas
), has taken a step to support the fuel needs of natural gas
vehicles (NGVs) in Houston, Texas where it has opened a
compressed natural gas (CNG) fueling facility.
The facility - largest in the nation - will serve around 200
Central Freight Lines' and Swift Transportation's class-8 natural
gas-powered trucks which are expected to consume about 5 million
diesel-gallon equivalents of natural gas per year. In addition,
it would also support other trucking fleet and public vehicles
running on CNG.
Management believes that prominent trucking firms like Central
Freight Lines and Swift Transportation would not only benefit
from their move to CNG but will also aid the environment.
Central Freight Lines management plans to bring online two more
similar CNG stations strategically located in Texas to support
their expanding operations.
Swift Transportation also agrees to the benefits of switching to
the abundantly available, clean burning natural gas as
transportation fuel through this first commercial-private
Salt Lake City, Utah-based Questar is a natural gas-focused
energy company with three principal subsidiaries - Wexpro
Company, Questar Pipeline and Questar Gas Company.
The company is expected to perform well in the coming quarters
given its focused and experienced managerial team, manageable
debt maturities and long-term contracts. An above-average credit
quality adds to the bullish sentiment. However, we are concerned
about the current volatile natural gas price environment that may
restrict the company's near-term growth prospects.
Questar currently carries a Zacks Rank #3 (Hold), implying
that it is expected to perform in line with the broader U.S.
equity market over the next one to three months.
Meanwhile, one can consider other utility stocks such as
AGL Resources Inc.
MDU Resources Group Inc.
Atmos Energy Corp.
) which currently hold a Zacks Rank #2 (Buy) and offer good
ATMOS ENERGY CP (ATO): Free Stock Analysis
AGL RESOURCES (GAS): Free Stock Analysis
MDU RESOURCES (MDU): Free Stock Analysis
QUESTAR (STR): Free Stock Analysis Report
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