Everyone by now knows that the U.S. has become the Saudi Arabia of natural gas and may someday be far less reliant on imported oil to recent technological advances in drilling that have unlocked vast shale deposits of stranded oil. There is a way to play this that is not so dependent on commodity prices like the E&P companies. That’s Dresser Rand, DRC.
The stock has done well over the last year so we took notice when the CEO purchased a million dollars worth at $57.02 on 3-8-13. The stock recently pulled back after its quarterly earnings announcement. I listened to the call and felt Mr. Volpe, the CEO, was very calm and confident about business prospects.
I don’t think anyone really knows how big natural gas will get to be. When you hear Warren Buffett talk about replacing diesel with it for trains on his Burlington Northern railway, you have to believe it could be finally getting to be a mainstream transportation fuel. Also, there are quite a few LNG projects going on domestically and internationally. All of this plays very well into core businesses for DRC.