Energy Stocks To Buy #3 — EQT (EQT)
Holding nearly 580,000 gross acres and 8.3 Tcf worth of proved reserves, EQT (EQT) could be one of the best energy stocks to play the Marcellus shale. Aside from the 14,000 wells it owns in the entire basin, EQT has a few aces up its selves.
First is EQT’s exposure to Devonian shale. This play basically lies on top of certain parts of the Marcellus shale and is equally as prolific. EQT is planning on drilling both the Marcellus and Devonian from a single well pad. That will enable it essentially double its production from it well, while only realizing a slight bump in production costs.
The second piece to EQT’s success is its pipeline MLP subsidiary EQT Midstream (EQM). EQT stock has been able to “drop down” gathering and natural gas transportation assets it uses into EQM in return for plenty of tax-friendly distributions. EQT basically pays a fee to use these pipes, then kicks much of that back as a dividend from the MLP.
At the end of day, EQT stock could be one of the best all-around and most consistent energy stocks in the entire Appalachian region.