Equitable Resources CEO Talks Nat Gas
As the price of natural gas has fallen, so too have the stocks that deal in it.
But maybe more than they should have. Take a company like Equitable Resources, a nat-gas producer with sizable holdings in the Appalachia Basin that also pipes the fuel to market. This latter business isn’t dependent on the price of natural gas, but still EQT has dropped 33% from its peak on May 21.
Chairman and CEO Murry Gerber agreed with Cramer that there’s plenty of industrial demand for nat gas at $8 to warrant more respect for EQT and its cohort on Wall Street. And relative to the price of oil, this cleaner alternative is much cheaper, Gerber said, calling it “the absolute deal of the century.”
And EQT’s business is more than just the price of natural gas. The company has a massive drilling program running on 3.3 million acres, and EQT is pioneering a new horizontal air drilling initiative as well.
“We’ve just got tremendously more opportunities at this point,” Gerber said, “than we ever imagined that we would.”
“These stocks got oversold,” Cramer said of the natural gas sector. At these levels, EQT “could be worth buying.”
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