Apache Corporation (APA), Ultra Petroleum Corp. (UPL): How To Invest in Energy Like a Billionaire

The oilfield service company specializes in complex well completions, making it an important company for extracting ever-harder-to-reach oil and gas. With operations spanning the most active shale plays, an investment in C&J Energy Services Inc (NYSE:CJES) is one that benefits as oil and gas companies drill more wells using even more complex hydraulic fracturing techniques.

By investing $6.5 million in Cameron International Corporation (NYSE:CAM), Soros is picking up an oilfield equipment maker that provides products and services to both the onshore and offshore markets. Where Cameron International Corporation (NYSE:CAM) really shines is in the growing subsea systems and offshore market, which have both benefited higher oil prices. As oil prices worldwide have remained above $100 for the past few years, it has enticed oil producers to invest billions to grow production offshore. That trend shows no signs of slowing down.

The final new energy investment that we will look at is Soros’ $6.5 million investment in Cheniere Energy, Inc. (NYSEMKT:LNG). The reason for this purchase is quite obvious: Soros sees a big future for exporting natural gas. While Cheniere Energy, Inc. (NYSEMKT:LNG) is no longer the only company approved to export gas to a country that doesn’t have free trade agreement with the U.S, it is the first mover in the space. Further, in addition to its already approved Sabine Pass facility, the company has a second potential facility in the works in Corpus Christi, Texas.

Final Foolish thoughts
When you look at these five companies there are two interesting takeaways:

1. Each could be considered as an “against the grain” investment.
2. There is tremendous focus, yet diversity.

Neither Ultra or Apache is a “hot stock” right now, while fracking and natural gas exports are both pretty hotly debated subjects. Further, each company has something it does very well, yet none is a one-trick pony. So if you want to invest like a billionaire, the process is almost as important as the stocks. In this case, Soros is looking for focused companies that aren’t what everyone else is buying these days.

The article How To Invest in Energy Like a Billionaire originally appeared on Fool.com is written by Matt DiLallo.

Fool contributor Matt DiLallo has no position in any stocks mentioned. The Motley Fool recommends Ultra Petroleum, owns shares of Apache and Ultra Petroleum, and has options on Ultra Petroleum.

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