Event Driven Energy: CVE, EQM, EQT, PXD, WMB

Energy, Event Driven/Special Sit, Utilities


Event Driven Energy Names: Long Cenovus Energy (CVE), EQT Midstream Partners LP (EQM) & EQT Corporation (EQT), Pioneer Natural Resources Co (PXD), Williams Cos Inc (WMB)

Publicly traded companies mentioned herein: Cenovus Energy (CVE), Columbia Pipeline Partners LP (CPPL), Energy Transfer Equity LP (ETE), EQT Midstream Partners LP (EQM) & EQT Corporation (EQT), Exxon Mobil Corporation (XOM), Kinder Morgan Inc (KMI), MarkWest Energy Partners, L.P. (MWE), Pioneer Natural Resources Co (PXD), Suncor Energy Inc (SU), Williams Cos Inc (WMB)

Highlights

For the next six months the presenter believes directional exposure to energy is unwise, as the direction commodities will head seems to be “unknowable.” Given this view he has focused on event-driven situations and potential M&A targets, and has been buying companies that appear to be reasonably priced with good risk/ reward profiles (in some cases, pairing the long positions with weaker peers). This way, if he gets the commodity wrong, the impact should not as bad as it would be otherwise, and if an event occurs he can make “a nice alpha spread.”

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Idea Discussion

Commentor 1 - 2 weeks ago

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