Tags: energy | boom | infrastructure | refiners

Analysts: Look at Infrastructure Companies, Refiners to Profit From Energy Boom

By    |   Thursday, 13 Mar 2014 10:25 AM

With U.S. energy production booming — crude oil output is approaching its 1970 peak — you might be wondering how you can invest to take advantage of the trend.

Analysts and investors recommended to CNBC that you avoid the stocks of major oil and gas producers and instead consider infrastructure firms and refiners.

"The ones lagging behind are the oil majors," John Kilduff, a partner at Again Capital, told CNBC. "It's more the smaller companies, the innovators" that are exploiting the energy boom.

Editor’s Note:
These 38 Dates Are Key to Bagging $313,038

He cited oil and gas pipeline companies and oil rig companies as examples. The United States experienced a 3 percent increase in available storage capacity last year, and Kilduff sees that trend continuing.

Among the specific companies that Kilduff likes are Baker Hughes, Schlumberger, Anadarko and EOG Resources.

Trevor Houser, a partner at economic research firm Rhodium Group, likes pipeline company Kinder Morgan, according to CNBC.

He says the U.S. energy transport infrastructure hasn't updated much during the last few years. "We have a domestic crude oil delivery system that's oriented around bringing imports into the country from the Gulf" rather than transporting oil and gas from the middle of the country outward, Houser said.

Barron's asked two master limited partnership experts, Kyri Loupis of Goldman Sachs and Dan Spears of Swank Capital, for their top choices in the sector.

Loupis selected Oiltanking Partners, Lehigh Gas Partners and EQT Midstream Partners. Spear listed Access Midstream Partners, Energy Transfer Equity and NGL Energy Partners.

Editor’s Note: These 38 Dates Are Key to Bagging $313,038

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With U.S. energy production booming — crude oil output is approaching its 1970 peak — you might be wondering how you can invest to take advantage of the trend.
energy,boom,infrastructure,refiners
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2014-25-13
Thursday, 13 Mar 2014 10:25 AM
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