The Future of Green Tech Investment

green technology investmentAccording to a recent article in Green Technica by author Joshua S. Hill, green tech investment could “skyrocket” by 2030. Hill cites research from Bloomberg New Energy Finance, including a detailed analysis of three different potential scenarios. As their research shows, wind and solar could have the efficiency and popularity needed to bring the renewable energy industry into its own.

Although clean energy ETFs have been underperforming in an era where fossil fuels have largely recovered from recession-era prices, each of the three scenarios explored by Bloomberg New Energy Finance shows an increase in green technology investing. A 230% increase in annual investment by 2030 would mean increasing to a total of $630 billion per year. Bloomberg New Energy Finance largely attributes this to the decreasing cost of wind and solar technologies, as compared to fossil fuel alternatives. The report also shows increased use of hydro power, geothermal and biomass.

Michael Liebreich, Bloomberg New Energy Finance’s chief executive, believes that we have already passed the “tipping point” for clean energy technology. He points out that, even though most news coverage is discussing the future of fossil fuels, costs for green energy and implementation are falling. He says, “The news right now is dominated by stories of pain caused by overcapacity on the supply side of clean energy, and the lure of cheap shale gas, but this is playing out against the falling costs of renewable energy and of all the technologies required to integrate it into our energy system, and falling costs win. What it suggests is that we are beyond the tipping point towards a cleaner energy future.”

The three scenarios explored by Bloomberg New Energy Finance are “New Normal”, “Barrier Busting” and “Traditional Territory”. “New Normal” is cited as the most likely, and ends with a probable $630 billion per year in green tech investing. Each scenario calls for growth in the renewable energy sector, notably in solar and wind energy, along with decreases in fossil fuels. Even the modest “Traditional Territory” scenario shows green tech investment increasing to $470 billion by 2030.

Guy Turner, the head of economics and commodities for Bloomberg New Energy Finance, says that renewable technologies will be the “anchor of new generating capacity additions” in all scenarios. He points out, “The main driver for future growth of the renewable sector over this timeframe is a shift from policy support to falling costs and natural demand.” Read the original article.

When we last looked at solar energy in particular, we noted that 2013 is a slower year for installations due to an oversupply of solar panels. However, by bringing this technology to end-users more quickly and at lowered prices, we explored the idea that solar energy may be closer to being at parity with fossil fuel based energy. Also helping the situation is a budgeted increase in spending for the Department of Energy, including a 75 percent increase in spending on advanced vehicles to $575 million, and a 29 percent increase in spending on the ongoing effort to integrate solar and wind power into the national electric grid.

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Warren Buffett’s ‘World’s Largest Solar Power Development’ Underway near LA

It’s being billed as the “world’s largest solar power development,” the joint construction effort started in January by Berkshire Hathaway’s MidAmerican Solar and SunPower Corp. north of downtown Los Angeles in Kern and Los Angeles counties. Officially called the Antelope Valley Solar Projects, the 3,230-acre development in two co-located projects are scheduled to generate 579 megawatts, or enough energy to power 400,000 average California homes or about 2 million people.

MidAmerican Solar is a subsidiary of MidAmerican Energy Holdings Co., which is controlled by Berkshire Hathaway. Warren Buffett is the primary investor, chairman and CEO of Berkshire Hathaway.

The two companies calculate that the electricity powered by the project will displace an estimated 775,000 tons of carbon dioxide annually, which they say is equal to taking about 3 million cars off the road over the next 20 years. MidAmerican  owns the development and SunPower is the designer, engineer and contractor for the construction and will operate and maintain the project. Southern California Edison is the customer that will purchase the power when it is completed by year-end 2015.

One of the other big solar power stories  of the week, “The Incredible Shrinking Cost of Solar Energy “(http://www.juancole.com/2013/05/incredible-shrinking-projects.html notes that thanks to the “dramatic fall in the cost of solar power generation” solar is at grid parity in many parts of the world, including Germany, Portugal, Italy and Spain, as well in the southwestern U.S.

Other data points in these stories include:

  • The cost of the best Chinese solar panels fell in cost by 50 percent between 2009-2012. Over the next two years, cost reductions will “slow” to a 30 percent rate.
  • By 2015 solar panels are expected to fall to 42 cents per watt.
  • U.S. solar installations rose 76 percent in 2012.
  • Hybrid plants that include both solar and wind turbines dramatically increase efficiency and help integrate into the electrical grid.

Given some of the interesting developments in solar power, how have some of the solar stocks fared in the past few months?

San Mateo, CA-based SolarCity Corp. (Nasdaq: SCTY, http://www.solarcity.com/ designs, installs and sells or leases solar energy systems to residential and commercial customers, as well as electric vehicle charging products.  It closed March 15 at $16.74 with a market cap of $406.5 million. By April 12 it was trading at $19.97 with a market cap of $1.5 billion. SCTY closed May 8 at $24.16, up 50 cents for the day with a market cap of $1.8 billion. Its 52-week trading range is $9.20-$28.23.

Ontario, Canada-based Canadian Solar (Nasdaq: CSIQ, http://www.canadian-solar.com/ ), which sells a variety of solar products, closed back on March 15 at $3.50 with a market cap of $151 million. It closed April 12 at $4.07 with a market cap of $176 million. CSIQ closed May 8 at $5.29, down 17 cents for the day, with a market cap of $228 million. Its 52-week trading range is $1.95-$6.09.

San Jose, CA-based SunPower Corp. (Nasdaq: SPWR, http://www.sunpowercorp.com/), which makes a wide variety of solar products and systems and is one of the principals in the Antelope Valley Solar Project, closed back on March 15 at $11.80 with a market cap of $1.4 billion. SPWR closed April 12 at $11.06. It closed May 8 at $15.36, down 6 cents for the day, with a market cap of $1.8 billion. Its 52-week trading range is $3.71-$16.04.

China-based Trina Solar Ltd. (NYSE: TSL, http://www.trinasolar.com/) designs, manufactures and sells photovoltaic modules worldwide. Back on March 15, TSL closed at $4.11 with a market cap of $291 million. It closed April 12 at $4.19 with a  market cap of $335 million. TSL closed May 8 at $4.72, down 22 cents for the day. Its 52-week trading range is now $2.04-$7.67.

China-based Yingli Green Energy Holding Co. (NYSE: YGE, http://www.yinglisolar.com/ makes photovoltaic products including cells, modules and systems. YGE closed back on March 15 at $2.47 with a market cap of $387 million. It closed April 12 at $2.12 with a market cap of $324 million. YGE closed May 8 at $2.20, down 7 cents for the day, with a market cap of $356 million. Its 52-week trading range is $1.25-$3.68.

China-based Suntech Power Holdings (NYSE: STP, http://am.suntech-power.com/), the world’s largest producer of solar panels, closed at $0.70 back on March 15 with a market cap of $127 million. It closed May 8 at $0.51, down 7 cents for the day, with a market cap of $92 million. Its 52-week trading range is $0.30-$2.67.

St. Peters, MO-based MEMC Electronic Materials (NYSE:WFR, http://www.memc.com/) manufactures and sells silicon wafers and photovoltaic materials. Through SunEdison, it’s a developer of solar energy products. It closed March 15 at $4.53 with a market cap of $1 billion. WFR closed April 12 at $4.76 with a market cap of $1 billion. WFR closed May 8 at $5.33, down 6 cents for the day, with a market cap of $1.2 billion. Its 52-week trading range is $1.44-$5.70.

Is Outlook Sunny for Solar Stocks in 2013?

Photo courtesy of blog.heritage.org

Photo courtesy of blog.heritage.org

The big news for the solar industry this week came in a report from the Solar Energy Industries Association noting that “solar panel installations in the U.S. surged 76 percent in 2012.” That number was driven largely by growth in residential and commercial projects, and a boom in “larger, utility scale (solar) plants,” according to Investor’s Business Daily (http://news.investors.com/technology/031413-648050-solar-installations-up-but-forecast-slowing.htm?ven=yahoocp,yahoo).

The same report cited a slower growth forecast for 2013 of around 30 percent, “amid falling prices for solar products,” according to the IBD story, which is packed with interesting factoids about the industry:

  • Solar was installed in “nearly 83,000 homes in 2012”
  • From 2009-12, the U.S. solar industry grew at a compound annual growth rate of 82 percent
  • The forecast for solar industry growth from 2013-16 is 28 percent
  • A record 3,313 MW of solar photovoltaics were installed in 2012
  • The solar capacity that went online in 2012 “amounts to more than 40 percent of the nation’s entire existing capacity.”

So what does this mean for an investor in solar companies, many of them small caps? Apparently there’s still an oversupply globally of solar panels, prices have continued to fall “amid tech innovation, economies of scale and overcapacity, and price wars “mean manufacturers are producing panels at about half their normal capacity.” All this is bad for manufacturers but good for end-users “as the cost of using solar energy gets closer to parity with fossil-fuel energy sources.” 

Certainly investors could have done a lot worse than bet on solar stocks (particularly SPWR) since the beginning of 2013. While many have seen prices dip from highs in early February and March, a look at recent returns over the past six months shows that those who have been riding the solar wave since then have generally had a good run, although it seems to be easing up in recent weeks. The question is now, will it continue through 2013?

Here are a few of the small cap names we have been following:

San Mateo, CA-based SolarCity Corp. (Nasdaq: SCTY, http://www.solarcity.com) designs, installs and sells or leases solar energy systems to residential and commercial customers, as well as electric vehicle charging products. Back on Dec. 20, 2012, SCTY was trading for $10.67 and its run started from there. By March 6, 2013 SCTY was nearly $20. It closed March 15 at $16.74, up 14 cents for the day, with a market cap of $406.5 million. Its 52-week trading range is $9.20-$20.38.

Tempe, AZ-based First Solar (Nasdaq: FSLR, http://www.firstsolar.com/), which specializes in thin-film solar modules, is not a small cap as we define it but we include it for comparison purposes. Back in late September FSLR was trading for about $20 and was as high as $36.13 in February before it fell. It closed March 15 at $26.61, down 65 cents, with a market cap of $2.2 billion. Its 52-week trading range is $11.43-$36.98.

Ontario, Canada-based Canadian Solar (Nasdaq: CSIQ, http://www.canadian-solar.com/ ), which sells a variety of solar products, closed back in late September 25 at about $3 with a market cap of $130 million. It got above $5 by mid-February and then dipped like many of the others. It closed on March 15 at $3.50, down 3 cents for the day, with a market cap of $151 million. Its 52-week trading range is $1.95-$5.15.

San Jose, CA-based SunPower Corp. (Nasdaq: SPWR, http://www.sunpowercorp.com/), which makes a wide variety of solar products and systems, closed back on Sept. 25 at $4.60 with a market cap of $547 million. SPWR closed March 15 at $11.80, down 24 cents for the day, with a market cap of $1.4 billion. Its 52-week trading range is $3.71-$13.88.

China-based Trina Solar Ltd. (NYSE: TSL, http://www.trinasolar.com/) designs, manufactures and sells photovoltaic modules worldwide. Back in mid-December, TSL was trading for about $3.95, ran up to $5.81 in early January, but has tumbled since. It closed March 15 at $4.11, up 1 cent for the day, with a market cap of $291 million. Its 52-week trading range is $2.04-$8.68. 

China-based Yingli Green Energy Holding Co. (NYSE: YGE, http://www.yinglisolar.com/) makes photovoltaic products including cells, modules and systems. YGE closed back on Dec. 21 at $2.18, then ran up to $3.49 by mid-February, but it, too has been dropping since then. It closed March 15 at $2.47, up 7 cents for the day. Its market cap is now $387 million and 52-week trading range is $1.25-$4.60.

China-based Suntech Power Holdings (NYSE: STP, http://am.suntech-power.com), the world’s largest producer of solar panels, closed at $0.92 back on Sept. 25, 2012, and then rose to $1.87 in early January, but has been falling since. STP closed March 15 at $0.70, up 3 cents for the day, with a market cap of $127 million. Its 52-week trading range is $0.41-$3.68.

St. Peters, MO-based MEMC Electronic Materials (NYSE:WFR, http://www.memc.com) manufactures and sells silicon wafers and photovoltaic materials. Through SunEdison, it’s a developer of solar energy products. In early November, WFR was trading as low as $2.18 and then hit a recent high of $5.66 in mid-February. It closed March 15 at $4.53, down 24 cents for the day, with a market cap of $1 billion. Its 52-week trading range is $1.44-$5.70.

Does the ‘Car of the Future’ Have a Future? Tesla Says Yes

Does the “car of the future” have a future? That’s the question Time magazine asks as the end of its recent story on electric cars that ran under the headline “Electric-Vehicle Acid Test” (http://www.time.com/time/magazine/article/0,9171,2134523,00.html). While more and more battery-powered and hybrid vehicles are being introduced and prices continue to be slashed, sales continue to disappoint. Nonetheless, Cadillac, Fiat, Ford and Honda have announced that they will launch new all-electric vehicles this year.

Auto analysts say the biggest hurdle electric cars face is range, according to Time. Pure electric cars like the Nissan

Photo courtesy of Motortrend.com

Photo courtesy of Motortrend.com

Leaf list a range of about 80 miles before it needs a recharge, which can take hours. The Tesla Model S electric car boasts a range of 265 miles, although that’s currently the source of much debate, based on a kerfuffle kicked up by New York Times reporter John Broder’s test drive (http://www.nytimes.com/2013/02/10/automobiles/stalled-on-the-ev-highway.html?pagewanted=all&_r=0&pagewanted=print). When Broder reported that the Model S failed to live up to the range claims,  among other issues, Tesla founder Elon Musk took offense and offered other reporters a similar test drive to prove Broder was misleading readers and failed to fully recharge the batteries. Incidentally, Tesla reported its fourth quarter/year end results Feb. 20 and reconfirmed its guidance that 20,000 Model S vehicles will be sold this year and, in what was a new outlook, said the company will be profitable in the first quarter of 2013, not later in the year as they had guided investors earlier.

There’s little debate the fact that electric and hybrid vehicle prices are being slashed considerably. The lease price of the Nissan Leaf, which was about $449 per month in 2010, is now $139 monthly. Time reports that General Motors executives say the cost of next year’s Chevrolet Volt “will be thousands of dollars cheaper than last year’s.”

So how does a small cap investor play the electric and hybrid vehicle market? Here are a few randomly chosen options:

Palo Alto, CA-based Tesla Motors (Nasdaq: TSLA, http://www.teslamotors.com/) manufactures the Tesla Roadster, the Model S and other electric vehicles and electric powertrain  components. It’s too large for our focus, but just as a reference, the last time we looked at Tesla last September 19, 2012 it was trading at $31.05 with a  market cap of $3.3 billion. It closed Feb. 20 at $38.90, down $0.38 for the day with a market cap of $4.4 billion. Its 52-week trading range is now $25.52-$40.

Santa Rosa, CA-based ZAP (OTC: ZAAP.OB, http://www.zapworld.com/) makes a variety of all-electric vehicles including trucks, motorcycles, shuttle buses and sedans and was formerly known as ZAPWORLD.COM. Most of its business at this point is with government or military customers. Its stock, which traded for 20 cents last March 13, 2012 with a market cap of about $45 million, closed Feb. 20 at $0.08, no change on the day. Its market cap is now $24 million and 52-week trading range is $0.06-$0.21.

San Diego-based Maxwell Technologies Inc. (Nasdaq: MXWL, http://www.maxwell.com/) was formerly known as Maxwell Laboratories. The company manufactures ultracapacitors that are energy storage devices and power delivery systems for use in transportation, automotive, IT and industrial electronics.  MXWL closed back on March 13, 2012 at $18.69 with a market cap of $522 million. MXWL closed Feb. 20 at $10.01, down 48 cents for the day. Its market cap is now $292 million.

Random Notes on Electrical Vehicles, EV Charging Networks, the Housing Market…

Random notes that caught our eye:

  • A JD Power & Associates study of electric vehicle ownership suggests sales are still hampered by their high cost and a disconnect between the car manufacturers and potential buyers on a return on investment in EVs, according to the Los Angeles Times (http://www.latimes.com/business/autos/la-fi-mo-autos-electric-vehicle-costs-20121108,0,4965785.story). Overall, sales of electric vehicles are an “almost immeasurable portion of auto sales,” the article notes. Nissan Leaf sales are down 16 percent this year, Tesla Motors has delivered “less than 300 vehicles,” Mitsubishi, which makes the i-MiEV mini-car, has sold less than 500; Honda has leased only 48 of its electric Fit and Coda is not commenting, according to the article. The crazy thing is the study suggests the potential savings from driving an electric car “could be significant.” The study shows that EV owners report an increase in their electricity bill of $18 a month to recharge their cars compared to $147 they typically pay for a month of gas.

    Coda EV photo courtest evworld.com

  • Californians will be the beneficiaries of the nation’s most comprehensive electric vehicle charging network. The Federal Energy Regulatory Commission (FERC) this week approved a $100 million, four-year proposal from NRG Energy (NYSE: ERG) that allows NRG’s subsidiary, eVgo, to build the network, which will also include fast chargers that give drivers 50 miles of range in 15 minutes. The network, called a “public-private partnership” by NRG, will be made up of at least 200 public charging stations stretching from the San Francisco Bay area, south to San Diego County. NRG will also guarantee that at least 20 percent of the stations are in low income areas. The project is expected to generate more than 1,500 jobs and a total economic benefit of $185 million.
  • Amid all the noise about the “fiscal cliff,” some interesting observations in the New York Times Nov. 11 (http://www.nytimes.com/2012/11/11/your-money/fiscal-impasse-now-takes-center-stage-for-investors.html?ref=business): Most forecasters don’t believe there will actually be a drastic tumble. The consenus among “Blue Chip Economic Indicators is that the economy will…grow modestly in 2013.” Also, James W. Paulsen, chief investment strategist at Wells Capital Management suggests that “like the European Debt crisis this year, the cliff might turn out to be a series of chronic problems that are dealt with sequentially, not as a single financial disaster.”
  • There’s good news from the labor markets (slowly but surely improving), consumer confidence (“at a five-year high”) and the housing market (“clear signs of a rebound”), according to the same NY Times story.
  • Also in the NYT, a report from the Organization for Economic Cooperation and Development (a 34-country group including every major industrial nation) titled “Looking to 2060: Long-Term Global Growth Prospects:” more old people proportionately to the overall population mean reduced growth over that term, particularly in China. As China’s population ages “India and Indonesia will overtake China’s growth rate in less than a decade.” GDP in China will grow at a rate of 2.3 percent a year from 2030-2060 (little more than the 2 percent expected in the US) while Indonesia will grow by 3.3 percent and India by 4 percent.
  • Another study, this one by the National Research Council and commissioned by the CIA, suggests that “climate change is accelerating” and Hurricane Sandy is just a taste of “what can be expected in the near future.” John H. Steinbruner, the study author, said, according to the New York Times’ John M. Broder, that “humans are pouring carbon dioxide and other climate-altering gases into the atmosphere at a rate never before seen.”

Global Interest in Cleaner-Burning Natural Gas on the Upswing

The buzz about natural gas seems to be building daily. Natural gas, the cleaner-burning fuel, is on the upswing while coal, the not-so-clean burning fuel, is on the downswing, or at least losing favor in some circles.

Rex W. Tillerson, the CEO of Exxon Mobile Corp., the world’s largest publicly traded oil and gas company, took a stand on the subject June 4 at the 25th World Gas Conference in Malaysia. Perhaps he’s biased toward gas and perhaps the Asia-Pacific setting, where energy demand is skyrocketing, helped taint his remarks. But they set a strong stage for natural gas and its “historic rise to prominence in global energy markets,” noted Tillerson, whose company also announced this week that it was investing in a coal-seam gas venture in Australia.

Tillerson, noting that the world is now at a “historic moment in the evolution of energy markets,” touted natural gas as “quickly becoming a key enabler of economic growth and environmental progress around the world.” Tillerson’s complete speech can be found at www.exxonmobil.com/speeches.

Despite all the buzz, the price of oil and natural gas has been dropping, due at least in part to the softness of demand in places like China and Europe, according to some experts. These price drops have beaten down the stock prices of many of the natural gas companies at least in the short term. With the natural gas prices finally coming back, is it time for a rebound?

Here are some randomly chosen small cap companies that do businesses in the natural gas industry (althought not necessarily “pure plays.”)

Dover, DE-based Chesapeake Utilities Corp. (NYSE: CPK, http://www.chpk.com) is a diversified utility company that provides natural gas distribution services and sells natural gas in Delaware, Maryland and Florida. While its stock is relatively thinly traded (only about 35,000 shares a day) its price has stayed relatively strong for about a year and its 52-week range is narrow, only $36-$44.53. Market cap is $415 million. The stock closed June 8 at $43.29, up 29 cents on the day.

Midland, TX-based Natural Gas Services Group (NYSE: NGS, http://www.ngsgi.com) makes natural gas compression equipment for the natural gas industry in the U.S. After dipping down to about $11 last September, the stock has recovered somewhat. It closed June 8 at $13.59, up 10 cents on the day. Market cap is $166 million and 52-week trading range is $10.92-$17.22.

Oklahoma City-based Gulfport Energy Corp. (Nasdaq: GPOR, http://www.gulfportenergy.com) is focused on exploration along the Louisiana gulf coast and in West Texas, as well as oil sands development. Its market cap is now $1 billion. A year ago this stock was being featured as a “hot stock” and was trading in the mid-$30 range. But it has been heavily sold lately. Its 52-week range is now $16.42-$37.80 and it closed June 8 at $18.82, up 8 cents on the day.

Denver-based Forest Oil Corp. (NYSE: FST, http://www.forestoil.com) engages in the exploration, development and production of natural gas and natural gas liquids, along with oil in the U.S. It’s primarily focused on areas of Texas and north Louisiana.  Its stock is trading at the bottom of its 52-week range (&7.43-$28.22) and on June 6 was upgraded to buy from hold by Cannacord with a price target of $12. Also, Real Money’s Bret Jensen picked it as a ‘Risk On’ Energy Play for QE3 (http://www.thestreet.com/story/11573008/1/jensen-two-risk-on-energy-plays-for-qe3.html?puc=_atb_html_pla1&cm_ven=EMAIL_atb_html) on June 8. It’s market cap is about $900 million. FST closed June 8 at $7.87, down 35 cents for the day.

Radnor, PA-based Penn Virginia Corp. (NYSE: PVA, http://www.pennvirginia.com) is an independent oil and gas company engaged in the exploration, development and production of natural gas and oil in various onshore regions of the U.S. PVA has natural gas interests in East Texas and Mississippi. Its 52-week trading range is $3.92-$15.47 and its market cap is $244 million. It closed June 8 at $5.39, down 9 cents on the day.

Tsunami Aftermath Heating Up Natural Gas Market

The earthquake and tsunami that devastated Japan and its nuclear facility may be a boon to another energy source–natural gas. While the BP oil spill in the Gulf of Mexico has halted oil exploration there and coal plants are still heavily criticized for their contributions to global warming, natural gas is the one safe choice left standing, according to a March 22 article in the New York Times (http://www.nytimes.com/2011/03/22/business/global/22gas.html?_r=1&ref=business). 

This fact has not escaped investors. The Times notes that “since the disaster in Japan…natural gas prices in Europe and the U.S. have risen by 10 percent.” Utilities are also looking at natural gas “as a source of stable power,” something they have hesitated to do because of volatile price fluctuations and their steady reliance on nuclear power and coal.

A report to be released March 22 by the Bipartisan Policy Center and the American Clean Skies Foundation predicts that natural gas consumption will increase because supplies are now more abundant, according to The Times. The first place it will increase will likely be Japan which now needs desperately to raise its fuel imports.

While environmentalists have never been fond of the hydraulic fracturing needed to unlock gas from hard shale rocks–they say it pollutes underground rivers and acquifers–those problems now pale in comparison to the issues surrounding coal and nuclear power.

The big oil companies are way ahead of everyone else on this. Royal Dutch Shell and Exxon Mobile (which bought XTO Energy in 2010) are pushing ahead with new natural gas production and exploration. So how about the small caps?

Oklahoma City-based Gulfport Energy Corp. (Nasdaq:GPOR, http://www.gulfportenergy.com/) is focused on exploration along the Louisiana Gulf Coast and in West Texas and is a little large ($1.4 billion marketcap) for our purposes. But it is trading at around $32, nearly at the top of its 52-week range of $10.37-$34.26 and is on a huge roll. Gulfport It traded for less than $25 on March 10. It was named a “hot stock to watch” by the Wall Street Journal March 21 because it is raising to, among other things, acquire shale assets in Ohio, according to the report. Sound familiar?

Midland, TX-based Natural Gas Services Group Inc. (NYSE:NGS, http://www.ngsgi.com/) makes natural gas compression equipment for the natural gas industry in the U.S. Its stock is up nearly $2 in the past five days and was trading at about $17.67 on March 22. We don’t have much insight into this company (market cap is $215 million) but they seem to be positioned well if natural gas does indeed take off.

Dover, DE-based Chesapeake Utilities Corporation (NYSE:CPK, http://www.chpk.com/) is a diversified utility company that provides natural gas distribution services and sells natural gas in Delaware, Maryland and Florida. It has a nearly $398 million market cap and is trading at nearly $42, at the top of its 52-week range of $28.01-$42.27. It traded for $38.88 as recently as March 15.