Energy Stocks To Buy #4 — Rice Energy (RICE)
Rice Energy (RICE) could be one of the more interesting energy stocks operating in the region. While RICE is fresh off its IPO, its pedigree stretches far back.
The E&P firm was founded by Daniel J. Rice back in 2007. Before founding the producer, Rice spent several years managing energy assets for monster investment bank BlackRock’s (BLK) institutional clients. During that time, Rice managed to beat 99% of all U.S. stock-fund managers according to Bloomberg.
Rice used the same focus to set up Rice Energy, and the firm now controls drilling rights on 43,350 net acres in the Marcellus shale and 46,490 net acres in Ohio’s Utica shale. Wells on that acreage produce about 161 million cubic feet of natural gas per day.
For investors, RICE stock offers a chance to play a small and early-stage producer with actual real assets in the region. And RICE continues to grow those assets. The firm recently purchased $110 million worth of midstream and gather facilities in the Marcellus shale. That purchase is prompting analysts that believe that RICE will go the EQT route and move those assets into an MLP.