Have you ever wondered what it feels like to own a piece of a company that’s been quietly sending dividend checks to shareholders since before most of our great-grandparents were born? It’s not just a nice story—it’s real, and it’s happening right now in the natural gas space. In a world where flashy tech stocks grab headlines and crypto promises overnight riches, there’s something almost comforting about a steady, old-school payer that’s weathered every economic storm imaginable.
I’ve always had a soft spot for these kinds of businesses. They don’t scream for attention, but they deliver year after year. And when you dig a little deeper, you realize the story isn’t just about longevity—it’s about smart evolution too. Let’s talk about one that stands out: a natural gas player with roots stretching back to the early days of commercial gas use in America.
Why This Gas Stock Keeps Paying—and Growing—After More Than a Century
The history here is genuinely fascinating. Picture this: back in the 1820s, long before electricity dominated, a small town in New York lit its streets with natural gas from one of the very first commercial wells drilled in the country. That spirit of early innovation carried forward, eventually folding into larger investments tied to the famous Standard Oil era. By the early 1900s, the modern version of this company was born, and it’s never stopped paying dividends since—123 consecutive years and counting.
What’s even more impressive? For 55 straight years, the dividend has gone up. That’s not luck; that’s disciplined management and a business model built for resilience. In my view, few things signal confidence like consistently raising what you pay owners, especially through tough times like recessions, oil shocks, and pandemics.
A Vertically Integrated Model That Balances Risk and Reward
One reason this company endures is its structure. It’s not just a utility piping gas to homes—it’s vertically integrated. That means it handles exploration and production in prolific regions, gathers and transports gas, and then delivers it through regulated utilities. The upstream side can generate serious free cash when prices cooperate, while the regulated utility provides predictable, stable earnings no matter what the commodity market does.
Think of it like having two engines: one that revs high when demand surges, and another that idles smoothly for the long haul. Roughly two-thirds of operating earnings come from the more volatile exploration side, but the regulated portion anchors everything. It’s a smart hedge, and it’s helped sustain those payouts for generations.
- Upstream operations tap into rich Appalachian reserves, feeding growing demand from data centers and export terminals.
- Regulated utilities serve hundreds of thousands of customers across cold-weather states, ensuring steady usage.
- The mix allows reinvestment of upstream cash into regulated growth—creating a virtuous cycle.
I find this balance particularly appealing right now. With energy transition talks everywhere, natural gas remains a bridge fuel, and demand isn’t disappearing anytime soon.
Big Strategic Move: Expanding the Utility Footprint
Recently, the company announced a major step to strengthen the stable side of its business. It’s acquiring a neighboring natural gas utility operation for around $2.6 billion. This deal, expected to close late next year after approvals, will roughly double the regulated rate base and add hundreds of thousands of new customers across an additional state.
Why does this matter? The purchase price looks attractive—about 1.6 times the projected rate base a year after closing. That’s reasonable for a quality asset in a supportive regulatory environment with reliable winter demand. Plus, the added scale means more opportunities to invest capital at solid returns, which supports future dividend growth.
Acquisitions like this can transform a company’s earnings profile, shifting weight toward more predictable cash flows that underpin long-term shareholder commitments.
– Energy sector analyst perspective
From what I’ve seen, deals done at reasonable multiples in constructive jurisdictions tend to work out well for patient investors. This one seems to fit that mold perfectly.
Recent Financial Performance: Momentum Building
Looking at the numbers, things are moving in the right direction. In the latest reported quarter, adjusted earnings jumped significantly year-over-year. Full-year revenue climbed nicely too, reflecting both higher volumes and better pricing dynamics in parts of the business.
The stock currently trades at a forward multiple that feels reasonable given the growth outlook. Analysts expect solid earnings per share next fiscal year, and if the acquisition closes smoothly, that should provide another tailwind. It’s not screaming cheap, but it’s not nosebleed territory either—especially for a name with this kind of payout track record.
| Key Metric | Recent Performance |
| Dividend Yield | Around 2.6% |
| Consecutive Years of Increases | 55 |
| Consecutive Years Paid | 123 |
| Forward P/E Range | 10-11x |
That yield may not turn heads compared to some high-yield names, but the growth and safety behind it make it far more attractive than it first appears.
Dividend Commitment: A Cornerstone for Income Seekers
Let’s be honest—most of us who gravitate toward these stocks care about the dividend first. And here, the story is rock-solid. The current quarterly payout delivers a respectable yield, backed by a mix of cash flows that includes plenty from the stable utility side. Payout ratios remain comfortable, leaving room for reinvestment and further raises.
In my experience following dividend growers, companies that reach this many decades of increases rarely stop unless something catastrophic happens—and this one’s footprint is too diversified for that to be likely. It’s the kind of reliability that lets you sleep at night.
- Consistent cash generation from regulated operations supports the base payout.
- Upside from upstream and midstream adds cushion for growth.
- Management has a clear history of prioritizing shareholders.
Perhaps the most satisfying part? Each raise compounds over time. What starts modest becomes meaningful after a decade or two of ownership.
Capitalizing on Emerging Demand Trends
Beyond the acquisition, there are organic growth avenues too. Pipeline projects are underway to connect supply with new users—think data centers hungry for reliable power and export facilities shipping gas overseas. One specific lateral project alone is projected to bring in meaningful annual revenue from firm transportation contracts.
Natural gas demand isn’t fading; it’s shifting. Power generation, industrial use, and exports keep the fuel relevant. A company positioned in the heart of production and delivery stands to benefit disproportionately. It’s exciting to see a legacy name adapting without losing its core strengths.
Enhancing Income: The Buy-Write Consideration
For those wanting more than just the dividend, there’s an options angle worth exploring. A covered call—or buy-write—strategy involves owning the stock and selling call options against it to collect premium. That premium effectively boosts yield.
Here’s the catch: liquidity in the options chain can be thin, meaning wide bid-ask spreads. Jumping in carelessly might mean giving away value. Patience is key—use limit orders near a sensible midpoint, and only pull the trigger if the price makes sense.
When done right, it can add several percentage points of annualized income on top of the dividend. But if the fill looks lousy, it’s often better to skip it entirely. I’ve seen too many people chase premium only to regret the execution.
Risks Worth Keeping in Mind
No investment is perfect. Commodity price swings can pressure the upstream segment. Regulatory changes could affect utility returns. The acquisition carries execution risk until it closes. Interest rates impact valuation for any dividend name.
Still, the long track record suggests management navigates these challenges reasonably well. Diversification across business lines helps smooth the ride. For conservative income seekers, the risk-reward still tilts positively.
Final Thoughts: Is This the Income Play You’ve Been Waiting For?
After looking at the numbers, the history, and the strategic direction, I keep coming back to one question: in a market full of uncertainty, why not own something that’s proven it can pay through anything? This isn’t about getting rich quick—it’s about steady, compounding returns over decades.
Whether you’re building a retirement portfolio or just want reliable checks alongside more aggressive bets, a name like this deserves consideration. Its blend of tradition and forward-thinking moves makes it stand out. And honestly, there’s something reassuring about knowing your mailbox might still have a dividend check in 50 years.
What do you think—does longevity matter more than flash these days? I’d love to hear your take.
(Note: This article reflects general thoughts on income investing in the energy utility space. Always do your own research or consult a financial advisor before making decisions. Past performance doesn’t guarantee future results.)
