Photo: T. Boone
T. Boone Pickens has some good news for natural gas investors: the price of the compressed hydrocarbon cannot possibly get any lower.And when prices head higher, Chesapeake Energy should be a winner.
Speaking on CNBC, the BP Capital head said production cuts and looming freight demand will push prices above $3 per million British thermal units within the year.
“You’re gonna tighten this thing up,” he said. “Looking out at summer next year at $3-plus, I think that’s where you’re gonna be.”
But he is going to wait before jumping back in to investing with major natgas players. Pickens confirmed he had sold out of Chesapeake energy, and fingered Continental Resources and Pioneer Natural Resources as his hot picks, based on their strengths in oil development.
As for the fate of Chesapeake CEO Aubrey McClendon, whom Pickens has called a “good friend,” the fellow Oklahoma native reiterated his support, saying the company’s problems would “clear up” and that McClendon would be a “homerun hitter” again.
Meanwhile, Pickens was not asked about this.