When T. Boone Pickens speaks, investors should listen.
Like Bill Gross and bonds, the former oilman and current head of BP Capital is 100% focused in his core competency — energy. To that end, Pickens’ bold calls have made him a legend in oil & gas markets, as well as a billionaire.
Speaking to CNBC’s Closing Bell this past Wednesday, Pickens continued his bullish stance on long-term energy prices and equities within the sector. Overall, the legendary oilman predicts some pretty good times ahead for energy.
Pickens’ first call was that oil prices will stay elevated and probably will not fall much further — perhaps only $5 or so per barrel. That’s certainly encouraging news as slow economic growth across key regions like Europe and China have taken much of the wind out of oil’s sails. Brent crude has dropped about $10 from the highs it hit in mid-September.
Perhaps more bullish was Pickens’ prediction for natural gas. The hedge fund manager expects the fuel to trade at roughly $4 per million Btu by the end of this year. The hydraulic fracturing revolution sweeping the nation has created a glut and has sent natural gas prices toward historic lows. Currently, natural gas can be had for around $3 per million Btu.
Certainly, these are bullish calls for the energy sector given the myriad factors facing it. For investors, if Pickens’ calls come to pass, it could mean some big profits — if you pick the right stocks. Here are five that investors should consider: