5 Energy Stock Pick Ideas You Should Pay Attention To

#3 Western Gas Equity Partners LP (NYSE:WGP)

Shares held (as of September 30): 92,672
Total Value (as of September 30): $3.65 million
Percent of Portfolio (as of September 30): 2.12%

Western Gas Equity Partners LP (NYSE:WGP), which indirectly owns the entire general partner interest in Western Gas Partners, LP (NYSE:WES), had a solid third quarter, as Western Gas Partners’ adjusted EBITDA came in at $182.9 million and DCF was $152.8 million. In addition, Western Gas Partners’ management has raising the mid-point of their full-year adjusted EBITDA outlook. Hedge funds are not sold on the company however, as only eight funds out of the 730 elite funds that we track owned Western Gas Equity Partners LP (NYSE:WGP)’s shares at the end of the second quarter. The funds held a cumulative total of just 0.30% of the float at that time.

#2 Plains GP Holdings LP (NYSE:PAGP)

Shares held (as of September 30): 215,703
Total Value (as of September 30): $3.78 million
Percent of Portfolio (as of September 30): 2.19%

Nine analysts have a ‘Buy’ rating and eight have a ‘Hold’ rating on Plains GP Holdings LP (NYSE:PAGP), with them having a consensus price target of $23.54 per share. Despite the analysts’ optimism, at least as far as their consensus target price goes, shares are down by almost 50% year-to-date as sentiment deteriorates due to low energy prices. Shares have also been hurt because of a bad third quarter, in which the company missed EPS estimates by $0.02 per share and revenue expectations by $2.26 billion. Shares will recover once energy prices rebound.

#1 EOG Resources Inc (NYSE:EOG)

Shares held (as of September 30): 64,210
Total Value (as of September 30): $4.67 million
Percent of Portfolio (as of September 30): 2.71%

Lucas Capital increased its position in EOG Resources Inc (NYSE:EOG) by 18% in the third quarter, as the leading independent remains a potential takeover candidate for reserve-hungry super-majors. According to analysts at Goldman Sachs, super-majors only own around 5% of U.S shale oil resources, despite making up the majority of the oil and gas market capitalization. While many areas of the American energy landscape are currently economically unprofitable, the future of unconventional oil and gas production in the U.S is still promising given the strong U.S economy and the need for domestic production to improve national security, which became even more apparent yesterday as President Obama rejected the application for the proposed Keystone XL pipeline from Canada. Ken Griffin‘s Citadel Investment Group owned 5.38 million shares of EOG Resources at the end of June.

Disclosure: None