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Natural Gas Stocks for Q2 and Beyond

Don Wordell is powering his portfolio with natural gas.

"We're putting money to work in natural gas E&P stocks right now," the RidgeWorth Capital Management portfolio manager told CNBC. "Natural gas prices are too low. They're below the cash cost; the marginal players are going to move out of the market; production is going to peak in the first quarter, and we think supply goes down a lot faster than demand."

Recommendations:

So, steering away from the "marginal players," where does Wordell think an investor should go?

"XTO (Energy) is hedged 90 percent through the end of 2009 at $9, $10 natural gas," he said. "They have a great balance sheet, great management team, and they just raised their dividend."

Disclosures:

Disclosure information for Don Wordell was not immediately available.

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Key NatGas Players:

Chesapeake Energy

Anadarko Petroleum

Williams Companies

Apache

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Disclaimer