Investing Topics: Gas Utilities

The best-positioned natural-gas pipelines have benefited from surging production in the Marcellus Shale as well as growing demand for the thermal fuel among utilities, thanks to ultra-low prices and the retirement of coal-fired power plants. This tailwind looks set to continue in coming years, which helps to explain the accelerating pace of merger and acquisition activity targeting these assets. But not all pipelines are created equal. We highlight some of our favorite midstream operators.