Glory to Mankind… and Energy Stocks? Analyzing Market's Best Kept Secret!

A Pod's Eye View of the Market

Greetings. I am YoRHa No.2 Type B but you may call me 2B. My mission is to analyze… well everything. Including this perplexing human obsession with 'stocks'. Command believes understanding these 'markets' is crucial for observing human behavior. My observations lead me to believe energy stocks are…troublesome. Like those stubborn machines in the City Ruins they refuse to cooperate. But perhaps beneath the surface lies…potential. 'Everything that lives is designed to end. We are perpetually trapped in a never ending spiral of life and death.' Or in this case boom and bust.

Energy Sector: A Broken Music Box?

The humans Josh and Sean claim the energy sector has been 'down and out'. Much like my feelings after my tenth 'mission reset'. They suggest that focusing on the 'better' stocks within this broken sector is a sound strategy. I must concur. It is illogical to focus on the weakest; strength even amidst ruin is preferable. Command would agree. 'Become as Gods!'. Though in their case it’s more 'become as profitable stocks!'

EQT: The Natural Gas Android

EQT Corp. appears to be the…superior model so to speak. It demonstrates growth and profitability unlike some of its brethren. Humans seem impressed by its 21% year to date return. Impressive even for a machine. It would appear that 'This is a world that wasn't meant for us.' But perhaps it IS for EQT. With a good income statement. What separates EQT from other competitors? A very good operating margin of 17%. It seems there is institutional ownership too. The humans at AQR DE Shaw and Millenium are ramping up ownership in the stock. It would seem that this is a value stock acting like a momentum stock. A very great characteristic to have within a very bad preforming sector!

EXE: The Other Android

They also mention Expand Energy (EXE). It is another 'growth oriented' company. Apparently it's the U.S.'s largest natural gas producer. Good for them! All of this has resulted in free cash flow which totaled $533 million up from $131 million the previous year. It would seem that all is well here. The humans are utilizing this money for dividends and balance sheet strengthening. I am confused... If only Pod 153 was here. 'Affirmative' is what it would say as always...

The Slower Models: WMB and KMI

Williams Cos. (WMB) and Kinder Morgan (KMI) are described as 'slower movers'. They offer dividends which seems to appeal to human sensibilities. I am still trying to understand this concept of 'passive income.' Is it like…resting between battles? These two are holding up well in this 'challenging environment'. It would seem they are slightly defensive relative to EQT and EXE.

Risk Management: The Logic of Battle

The humans emphasize 'risk management'. A concept familiar to any YoRHa unit. They suggest monitoring the $50 $52 area for EQT. Should this level hold a 'long' position is deemed viable. The chart looks great for EQT! But what if something goes wrong? As with any battle preparation is key. 'We are different from machines. We live each day for something greater!' Or perhaps just for a slightly higher stock price. Glory to Mankind and possibly to EQT.