(MONEY Magazine) – In an era of technology-this and dotcom-that, it may be hard to get pumped about gas. But with natural gas prices up sharply, analysts say the industry's fundamentals are as attractive as they've been at any time since the '70s. One beneficiary: El Paso Energy (EPG), which is now acquiring Coastal Corp. in a deal expected to close by year-end.

In an industry where size matters, the El Paso/Coastal combination will be among the nation's largest natural gas firms, with $35 billion in assets and 58,000 miles of pipeline. Curt Launer, a top-ranked analyst at Donaldson Lufkin & Jenrette, says El Paso offers "great management in a great fundamental environment with great assets." At $48, the stock has a P/E of 21--pretty cheap for a firm with a long-term growth rate of 13%.

--AMY FELDMAN