Issue link: http://read.dmtmag.com/i/103862
8 Stocks that Stand to Benefit from the Continued Natural Gas Boom Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Last week I wrote about two factors that will help drive LNG stocks even higher and a SA reader inquired about the nuts and bolts suppliers that stand to benefit from the continued natural gas boom. Below is a list of eight companies which will benefit from an increase in natural gas production and consumption. These companies range from household names to obscure businesses which are virtually unknown outside industry trade circles. by barge and railroad (BNSF for the Eagle Ford). The company recently declared a $.50 special dividend and is in a very strong financial position. In addition to its frac sand sales, the company supplies foundries and glass and solar panel manufacturers with silica which helps offset some of the risks it faces of being overly reliant on the fracking industry. 3. Heckmann (HEK) 1. Union Pacific (UNP) Union Pacific is the largest railroad operating in the United States and every day moves thousands of tons of freight across nearly 32,000 miles of track in 23 states. Most importantly, the railroad operates in the Eagle Ford, Fayetteville, Permian Basin and Haynesville Shale plays. UP's location in these shale plays gives it the ability to ship frac sand, drilling equipment, and building supplies for the roads, homes, and buildings required by the influx of oil field workers. America's railroads have enjoyed a strong resurgence over the past few years, as high oil prices have made trucking more expensive and Union Pacific stands to build on that resurgence with increased shipments to and from the various shale plays in its area of operation. If Warren Buffett hadn't scooped up Burlington Northern Santa Fe a few years ago, then BNSF would have been another choice as it services several fields, most notably the Bakken. 2. U.S. Silica (SLCA) U.S. Silica supplies frac sand, the secret ingredient in hydraulic fracturing, to various drillers throughout the United States. The company owns 40 to 45 years of reserves, which it ships 26 In addition to frac sands, hydraulic fracturing requires massive amounts of water to create cracks in the shale formations. This is where Heckmann comes into the picture. The company is a full-water services company built from the ground up to service the water needs of hydraulic frackers. Heckmann has built water pipelines and assembled a fleet of tanker trucks which can deliver water to various shale plays. While some analysts have expressed concerns about the stock, the company has grown through a series of mergers and acquisitions and has a strong business model. Heckmann aims to service its clients over the entire life of a fracked well - not only is water needed at the time of drilling, but the well pumps out water from the frac process every day over the course of its life. Thus, Heckmann puts in place service contracts with the well operators to treat and dispose of the waste water and is guaranteed a consistent long-term revenue stream. 4. Apple (AAPL) Five years ago, connecting Apple and any boom in commodities, like oil and gas, would have been ludicrous, however, today such a connection is actually quite strong. First, Apple's ubiquitous iPhone and iPad are quickly becoming mainstays across America's corporate landscape, and this applies to the oil and gas industry, as well. Apple's App store has enabled developers to create apps for tracking oil rigs, exploration and production and well production. Indeed, IDA UNIVERSAL January-February 2013