ENGGF - Enagas: A Strong Quarter But Still Second Class Vs. Snam
Enagas (ENGGY)(ENGGF) is a company that has long vied for a spot in our portfolio against Snam (SNMRF)(SNMRY) as our gas transmission pick. Although this quarter was solid, and bears out the thesis around regulatory utilities, we still have several good reasons to prefer Snam. Some of the Enagas affiliates strike us as a little more risky than necessary in this environment, especially Tallgrass Energy (TGE), which, although safe now from counterparty risks, is still exposed to a potential second wave. Furthermore, the narrative around hydrogen is becoming more developed in the analyst community,