3 Cheap Energy Stocks That Are Poised to Explode in 2018

EQT Corporation (NYSE:EQT)

How Many Hedge Funds Own EQT: 50

How Much Money Hedge Funds Have Invested in EQT: $2.66 billion

EQT Corporation (NYSE:EQT) Spins Off Midstream Division: Several prominent hedge funds were among a group of investors pushing EQT to spin-off its midstream division, including Barry Rosenstein‘s activist hedge fund JANA Partners, which had a $543 million EQT position at the end of 2017. The company obliged those investors on February 21, announcing that it would do just that. The deal, which is tax-free to shareholders, will see EQT’s midstream division merge with Rice Midstream Partners LP (NYSE:RMP), vastly simplifying EQT’s corporate structure and creating two attractive pure-play companies.

EQT Corporation (NYSE:EQT) Free Cash Flow to See Boost?: EQT’s free cash flow, which has been mired in negativity territory for much of the last five years, is expected to greatly improve thanks to the reorganization. EQT’s existing contracts with its now-former midstream division are not expected to be impacted by the deal.

RSP Permian Inc (NYSE:RSPP)

How Many Hedge Funds Own RSPP: 40

How Much Money Hedge Funds Have Invested in RSPP: $1.3 billion

Bullish Signs Ahead of RSP Permian Inc (NYSE:RSPP)’s Earnings Call Later Today: Goldman Sachs is particularly bullish on RSP Permian, having a $56 price target on the stock and exclaiming that the company’s acreage in the Midland and Delaware Basins gives it one of the most attractive portfolios among smaller E&P’s. A report from Goldman Sachs earlier this month showed that the company’s well performance was among the best in the industry and exceeded expectations in 2017.

Hedge Fund Ownership of RSP Permian Inc (NYSE:RSPP): At the end of 2017, 40 of the hedge funds that are tracked by Insider Monkey were shareholders of RSP Permian, owning $1.3 billion worth of the company’s shares, representing 20.1% of the stock’s float. Billionaire Dan Loeb‘s Third Point built a 4.6 million-share position in the stock last year, valued at $187 million, while billionaire Israel Englander’s Millennium Management bought 2.24 million RSP shares in the fourth-quarter.

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