Baker Hughes Incorporated (BHI), Energy Select Sector SPDR (ETF) (XLE): Prospects For Energy Space

Jim Iuorio, from TJM Institutional Services, and Jeff Kilburg, from KKM Financial, speak to CNBC on the boom in the energy sector the stocks that need to be looked at within this space. Their recommendations included stocks like Baker Hughes Incorporated (NYSE:BHI) and Energy Select Sector SPDR (ETF) (NYSEARCA:XLE).

Baker Hughes Incorporated (NYSE:BHI)

After speaking on Warren Buffet’s interest in the energy space, Iuorio said “I think from my standpoint, that Warren Buffet hasn’t mentioned, some of these companies like XOM (Exxon Mobil) and BP, they pay a very nice dividend. When you look around this world, there’s not many yields you can get that even have any appearance of being safe yields and Exxon and BP are two that may. So, I like both of those plays.”

Meanwhile, Kilburg said that he likes the energy boom domestically and that the boom is in its infancy right now. On the stock of Baker Hughes Incorporated (NYSE:BHI), Kilburg said that the stock is attractive looking at the play on shale gas by the company.

Recently on July 11, 2014, Baker Hughes Incorporated (NYSE:BHI) had announced that the U.S. well count for the second second quarter of 2014 was 9,394 wells compared to 8,966 wells in the first quarter of 2014, which is an increase of around 5%. It also reflected an increase of around 4% in the number of wells, from the same period last year.

Kilburg also recommended investors to look at the energy ETF Energy Select Sector SPDR (ETF) (NYSEARCA:XLE).

Meanwhile, Kilburg also added: “But hold on – before you jump in, wait for the stocks to come down.  Because when you see a broader market sell-off, one of these energy stocks will be cheaper.”

Commenting further on the energy space, Iuorio said: “But one thing I say too, is the domestic production by which two-thirds of the news supplies that is coming into the market is from the U.S. This energy boom is enormous. I think that’s a solid way to play it as well too, but I like the dividends from some of those individual names.”


Disclosure: none

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