This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

5 Energy Stocks T. Boone Pickens Loves Right Now


Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

Canadian natural gas exploration and production firm EnCana (ECA - Get Report) is having a strong year in 2012. While the S&P 500 has climbed around 4% so far this year, EnCana has driven performance of more than double that, up 8.35% since the first trading day of January. The firm owns reserves of approximately 14.2 trillion cubic feet of natural gas equivalent spread throughout North America, positioning that makes EnCana one of the biggest nat gas names in the industry.

BP Capital Management bought 936,000 shares of EnCana in the most recent quarter, an $18.4 million position that makes ECA a full 10.5% position in Pickens' portfolio.

Nat gas has been under a lot of pressure in the last several years, with prices for the energy commodity scraping along the bottom of a multi-year range since prices topped back in 2008. That's been a problem for EnCana, since the firm needs prices to be economically viable to justify drilling. To counter their woes, ECA has been selling off some assets to generate cash, a practice that isn't ideal at these price levels.

>>5 Blue-Chip Stocks Ready to Boost Dividends

Ultimately, if crude oil stays at the higher end of its range, some substitution from oil to nat gas is likely to occur, and investors like Boone Pickens are counting on it.

To make up for the favor that oil has had over gas lately, ECA has been focusing its drilling on liquids-rich properties that provide bigger revenues for every hour that drilling crews are onsite. Until nat gas rebounds, that's a good strategy for EnCana and its investors.

Income investors should pay special attention -- the firm's 4% dividend yield is a hefty payout, even for the energy sector.

Encana also shows up in SAC Capital's portfolio as of the most recently reported quarter.
2 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
CPN $12.76 -3.40%
ECA $3.43 -0.58%
EXC $30.54 0.76%
NRG $9.26 -3.40%
VLO $56.50 1.70%


Chart of I:DJI
DOW 15,747.26 +87.08 0.56%
S&P 500 1,842.82 +13.74 0.75%
NASDAQ 4,293.8510 +27.0140 0.63%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs