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Traders weigh in on how to play the energy rally

The "Fast Money" traders re-positioned their portfolios, as the energy sector was the best performing group in the S&P 500 on Wednesday.

Trader Tim Seymour said Halliburton is a "best of breed" company in the sector and is very well positioned.

On Wednesday morning, Halliburton reported earnings of 1 cent a share on $3.83 billion in revenue. Analysts had expected the company to post a loss of six cents a share on $3.90 billion in revenue, according to a FactSet consensus estimate.

The stock rallied 4 percent on Wednesday and hit a new 52-week intraday high of $50.23.

Trader Pete Najarian said he used Halliburton's Wednesday rall to take some profits off the table. He said he's now looking at other companies like Marathon Oil.

Trader Dan Nathan said, with the right catalysts, large integrated oil companies like ExxonMobil and Chevron, which he thinks can lift the key energy ETF to higher levels.

Trader Guy Adami said he still likes Anadarko Petroleum in the space.


Disclosures:

PETE NAJARIAN

Long stock: AAPL, BAC, DIS, DISCA, GE, KMI, KMIA, KO, LUX, MRK, PEP, PFE CALLS: AAL, ABT, AMD, ATVI, BABA, BAC, BBY, BHI, BSX, CNX, COP, COTY, CRM, CS, CSCO, CXW, DAL, DISH, ECA, ETP, GM, GS, HAL, INTC, JBLU, JCP, KBE, KGC, KMI, KO, LLY, LOW, M, MOS, MRO, MRVL, MUR, NAV, NBR, P, RIO, SBUX, SLV, TMUS, TTS, TV, TWTR, VRX, WFT, WLL, XLF and puts: CLF, EEM, MBLY, WFC

TIM SEYMOUR

Tim Seymour is long ABX, APC, AVP, BAC, BBRY, CLF, DO, DVYE, EDC, EWZ, F, FB, FCX, FXI, GM, GOOGL, GE, INTC, LQD,MCD, MUR, OIH, PG, RACE, RAI, RH, RL, SINA, T, TWTR, VALE, VZ, XOM and short: SPY, XRT. His firm is long ABX, BABA, BIDU, CBD, CLF, EWZ, F, KO, MCD, MPEL, NKE, PEP, PF, SAVE, SBUX, SINA, VALE, VIAB, WMT, WEN, X, YHOO, and short EWG, HYG, IWM.

DAN NATHAN

Dan Nathan is TWTR long, PYPL long Oct calls, XHB long Jan put spread, XLU long Dec call Spread, XLK long Jan put spread, XRT long Jan put spread, PG long Dec put spread, EEM long Nov put spread.

GUY ADAMI

Guy Adami is long CELG, EXAS, GDX, INTC. Adami's wife, Linda Snow, works at Merck.