T. Boone Pickens continues to be ecstatic over the hydraulic fracking boom and shale oil/natural gas. As such, many of his stock picks play into shale production growth. One of the newest is a $3.4 million position in E&P firm EQT Corporation (EQT).
EQT produces natural gas and related natural gas liquids (NGLs) from the Appalachian Basin, better known as the prolific Marcellus Shale. The firm owns roughly 560,000 acres in the Marcellus alone and has 14,000 productive wells in the entire basin.
Those generously producing wells have helped EQT report some stellar earnings over the last few quarters. Its third-quarter adjusted earnings came in at 58 cents per share — more than double the amount earned from the same period last year. Aside from production gains at EQT, the firm has benefited from its “drop-down” relationship with its pipeline subsidiary EQT Midstream (EQM). That has relationship has provided plenty of tax-friendly distributions back into EQT’s bottom line.
While it isn’t the cheapest stock, EQT shares do represent one of the major leaders in the Marcellus. It’s no wonder why Pickens loaded up.