Porter Stansberry has released a new stock teaser (dubbed “The Boston Blackout”) about three natural gas companies he’s interested in.
And it’s all part of a pitch for a new service he runs called The Big Secret on Wall Street, which costs $1,000 to join through the Porter & Co site.
Stansberry didn’t reveal the names of the companies he’s pitching in the video, but I looked into his clues and managed to uncover two of them.
Ahead, I’ll break down Porter Stansberry’s natural gas prediction so you know what it’s all about and share my guess about his stock picks.
Breaking Down Porter Stansberry’s “Boston Blackout” Prediction
Porter Stansberry is a stock picker who’s probably best known for his work with Stansberry Research, a newsletter company he founded in 1999.
However, he recently launched a new publishing company called Porter & Company Research (aka Porter & Co). And as part of a sales pitch for his new flagship service (The Big Secret on Wall Street), Stansberry released a video predicting a “coming crisis.”
In short, he’s predicting that there will be a “major change” to the way Americans live, work, and travel, which, from my understanding, he believes will be due to an energy crisis stemming from underinvestment in fossil fuel production.
Basically, he argued that ideologies such as ESG have led to an undersupply of natural gas, which in turn could lead to a “crisis” that begins in Boston. Specifically, Stansberry says there’s a “very real chance” that Boston will suffer a “historic power failure this winter.”
And he pointed to liquified natural gas (LNG) as the solution, just as he suggested it was in 2018 when LNG arrived by tanker at Boston Harbor during a cold snap.
His presentation wasn’t all about Boston, though.
Porter Stansberry predicted that while the worst of the “economic catastrophe” he’s predicting may impact New England first (a region that includes Boston), he claims that “these same forces” are at work “across the country.”
“While the worst of what’s about to happen will strike New England first, these same forces are at work across the country.”
Long story short, he said that natural gas is the “cheapest, cleanest, most reliable” source of stable grid electricity available and that there’s not enough LNG that can be sourced from the world market without “very significant increases in prices,” which the presentation suggested could make investors in natural gas a lot of money.
What companies is he teasing?
Porter Stansberry teased three U.S.-based natural gas companies that he’s interested in during the video. And I’m pretty sure I know what at least two of them are.
What “Gods of Gas” Stock Is Porter Stansberry Teasing? (Revealed)
According to Porter Stansberry, the first company he’s interested in, which he refers to as the “Gods of Gas,” was started by three brothers in Pittsburgh.
Given there wasn’t a transcript of the video, my notes are pretty rough on this. But the gist is that it’s a Pittsburgh-based natural gas company that was started around 15 years ago. And about 41 minutes or so into the video, he said that the company had free cash flows of about $250 million in 2019, $495 million in 2020, and $607 million in 2021.
What could it be?
I think Porter Stansberry’s pick here is EQT Corporation (EQT), an independent natural gas producer headquarter in Pittsburgh.
Why? Well, this was a pretty easy one to solve. All I did was Google natural gas companies that were started by three brothers in Pittsburgh (as that’s a very specific clue), and this led me to a Youtube video by Forbes that breaks down their story.
In short, the brothers (Toby, Daniel, and Derek Rice) started Rice Energy in 2008, which was an oil and gas exploration and production company. Ten years later, they sold the company to EQT Corporation, and in 2019, Toby Rice became EQT Corporation’s new CEO.
Here’s the video if you want more info:
Note that I shared the above video for general informational purposes only. I am not a shareholder in this company, I’m not affiliated with it, and I’m not pitching it. I just thought you might find the video useful if you want to know more.
In any case, aside from what I just discussed, the clues Porter Stansberry shared about the company’s free cash flows match what’s shown about EQT on Yahoo Finance.
Also, as a side note, the company website states that EQT has a “plan to reshape the world’s energy mix by increasing U.S. LNG exports” to the world’s coal consumers (since natural gas is cleaner than coal), which further suggests it’s a match given Stansberry’s focus on LNG.
So while I can never be 100% sure about these things, EQT looks like a match based on the clues Porter Stansberry shared in the video.
Recommended: Go here to see my #1 rated stock advisory of 2023
Two Other Natural Gas Stocks Stansberry Pitched
Aside from Porter Stansberry’s “Gods of Gas” stock pick, he teased two other companies as part of the “Boston Blackout” presentation.
One is a company that he says is building an LNG facility on the Gulf Coast, and another is a royalty company with operations in the Permian Basin.
Let’s take a closer look at each of those picks now.
Pick 2: “The Emerging LNG Giant”
The second company Porter Stansberry teased in the video was supposedly founded by “the man who started the entire LNG boom in the United States” by building the “first independent LNG export facility” in the U.S.
And according to Stansberry, the same man started a new company that is building an LNG facility on the Gulf Coast designed to “serve international energy markets.”
Who’s he talking about?
Based on my research, the person Porter Stansberry is referring to is Charif Souki, who co-founded Cheniere Energy, the first U.S. company to export liquefied natural gas.
Further research revealed that Souki left Cheniere shortly before co-founding a Texas-based natural gas company called Tellurian Inc. (TELL) in 2016.
And this appears to be Porter Stansberry’s pick.
Why do I say that? Aside from the clues he shared about the company’s founder, there are three main reasons I think Tellurian is his second pick:
- First, according to its website, Driftwood LNG, a company owned by Tellurian, is “developing a liquefied natural gas (LNG) production and export terminal” in Louisiana (which is located on the Gulf Coast).
- Second, Porter Stansberry referred to his pick as a “small company” and (in a roundabout way) said he believes it could be worth “at least $100 billion in ten years,” which he said is “over 60x what it’s worth right now.” And as of writing, Tellurian’s market cap is just over $1.5 billion, so this clue is a match.
- Third, Stansberry said that one of the major shareholders is an investment management firm called Paulson & Company. And this firm is currently listed as a top institutional holder on Yahoo Finance.
So, Tellurian looks like a match.
As for whether or not it’s a good investment, I’ll leave that for you to determine, as I don’t make predictions about that sort of thing.
That said, I did find a fairly recent article about the company on Motley Fool’s website that you might find interesting if you want to further your research.
In short, the article talks about the “large-scale LNG export facility” Tellurian is building to “capitalize on growing global LNG demand” but also states that it’s “unclear” how the company will finance the project.
Pick 3: “Energy Royalties”
The last company Porter Stansberry teased is a royalty company operating in the Permian Basin, which he says owns mineral rights spanning across “almost a million acres,” with “over 9,000 producing wells.”
For context, a royalty company is basically just a company that owns the rights to the “stuff” being extracted from the earth, which, in this case, is oil and gas.
Instead of drilling themselves, which can be very capital intensive, they let other companies operate on land they have an interest in and collect royalty payments in the process.
That’s the gist of it, anyway.
And aside from the clues I just mentioned, here’s a quick overview of some of the other main hints Stansberry shared about the company he’s teasing in the video:
- It went public in 2014.
- Since then, the company’s “average daily volumes” of oil production have increased from an average equivalent of around 3,000 barrels of oil per day to around 28,000.
- It has a market cap of “roughly $5 billion.”
- It pays out a “nearly 10%” dividend yield.
What could this one be?
I’m not sure. Porter did provide some fairly specific clues on this one, but none of them led to a match, so his third pick remains a mystery.
Update (March 2, 2023)
A reader pointed out that this could be Viper Energy (aka Viper Energy Partners LP – ticker: VNOM), and after looking into the clues, I think this could be Porter’s third pick.
- The company went public in 2014.
- According to this 2019 document, the company has “acquired over 9,000 net royalty acres.”
- The company site says that (as of December 31, 2020), its assets “consisted of mineral interests underlying 787,264 gross acres and 24,350 net royalty acres in the Permian Basin and Eagle Ford Shale.”
- The company’s market cap (NASDAQ: VNOM) is currently sitting at just under $5 billion.
That said, I am not sure about the clue about a “nearly 10%” dividend yield, as my research suggests that its dividend yield is much lower than this.
Perhaps I misheard or misunderstood that clue (there was no transcript), but Viper Energy sure is a close match aside from that. Let me know what you think in the comments!
Porter Stansberry is pitching his new service, The Big Secret on Wall Street, as part of a new publishing company he’s launched called Porter & Co.
I’m not a member of this service, so I can’t tell you for sure what his picks are or give you the details about why he’s recommending them.
But my sleuthing may have saved you some time watching the video, and I was able to uncover what I think at least two of his picks could be.
So I hope you got some value from this post. And if you’d like to share your take on any of this, feel free to chime in below. Thanks for stopping by!