Industrial gas utilities are a group of companies that provide industrial gases, such as nitrogen, helium, and argon. These gases are used in many different industrial processes and in some manufacturing applications. Industrial gas utilities operate primarily by selling their gases directly to customers within an industry or segment of industries. It is essential to invest, therefore interested in investing in industrial gas utilities, to understand this sector’s ins and outs before investing. Read on to learn about three of the top industrial gas utility stocks you can buy today.

The first industrial gas utility stock to look at is Brookfield Infrastructure Partners (BIPC). BIP is a Canadian partnership that owns and operates natural gas, renewable energy, crude oil, ethane pipelines, and power generation assets. BIP is a leading industrial gas utility stock with a diversified portfolio of investments. BIP owns and operates a North American portfolio of natural gas, ethane, and crude oil pipelines. BIP also runs a North American power generation business that produces around 16,400 MW of power. In addition, BIP owns and operates three ethane processing and fractionation facilities and two ethane pipelines. BIP has an investment-grade credit rating and an enterprise value of less than $20 billion. BIP has a 6.8% yield, representing a stable source of income for shareholders.

Another industrial gas utility stock to consider is New Jersey Resources (NJR). NJR provides gas and utility services to commercial and industrial customers in the Northeastern and Mid-Atlantic regions of the United States. NJR primarily offers services to customers in the healthcare, education, construction, food and beverage, and hospitality industries. NJR operates in two segments, New Jersey Natural Gas and New Jersey Utilities. The company’s utilities segment operates 11 electric generating facilities and seven natural gas distribution systems. NJR owns and runs 3,295 miles of gas pipelines and 132,200 miles of distribution mains. NJR also operates 13 electricity-generating stations. In addition, NJR owns and operates three power plants in New Jersey. NJR’s primary source of revenue is the sale of natural gas and retail electric and gas services. NJR has a high-quality business that should benefit from an expected increase in industrial activity.

An industrial gas utility stock with exposure to China is Spire (SR). SR is a leading supplier of industrial gases in China. SR operates in three business segments: Industrial Gases, Specialty Gases, and Equipment and Services. SR’s Industrial Gases segment manufactures and sells industrial gases, such as argon, carbon dioxide, helium, nitrogen, oxygen, and sulfur hexafluoride. SR’s Specialty Gases segment provides specialty gases, including bromine, chlorine, and hydrogen cyanide. SR’s Equipment and Services segment owns and operates six helium plants, seven carbon dioxide plants, a nitrogen oxide plant, and a sulfur hexafluoride plant. SR’s primary source of revenue is the sale of industrial gases and specialty gases. SR’s customers are primarily located in China, as well as in other Asian countries. SR also has operations in the United States and Europe. SR has a market capitalization of around $11 billion and a dividend yield of 5.5%.

The last industrial gas utility stock to look at is Suburban Propane Partners (SPH). SPH owns and operates a network of crude oil and propane pipelines and terminals. SPH operates in two business segments: Transportation and Terminals. SPH’s Transportation segment owns and operates crude oil pipelines and propane pipelines. SPH’s terminals segment owns and operates five propane terminals, two crude oil terminals, and a refined products terminal. SPH transports crude oil and propane from producing basins to regional and national markets. SPH’s primary source of revenue is the transportation of crude oil and propane. SPH has a market capitalization of around $4 billion and a dividend yield of 6.5%.

Investors interested in industrial gas utilities should look at Brookfield Infrastructure Partners, New Jersey Resources, Spire, and Suburban Propane Partners. All four companies have a diversified business model and high credit ratings. In addition, these industrial gas utility stocks are also expected to benefit from an expected increase in industrial activity. As a result, industrial gas utilities are an attractive investment opportunity given their steady demand and the North American economy’s expected growth.

Roberto holds a Master's Degree in Communication and proudly wears his 15 years of direct and managerial experience in intensive Digital Marketing and Financial Analytics. He was the founder of Good Noon, a Digital Marketing Agency awarded by Expertise among the top 10 best marketing agencies in San Francisco in 2020.

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