Smart Money Trickles Back Into Energy

Those considered sectors 'smart money' see opportunity in sector
By Clay Dillow,  Newser Staff
Posted Jan 6, 2009 11:51 AM CST
This is a Tuesday, Jan. 3, 2006, file photo of pipes in a gas storage and transit point in Boyarka, just outside Kiev.   (AP Photo/Sergei Chuzavkov)
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(Newser) – The energy sector is recharging, the Wall Street Journal reports, at least if a pair of deals by billionaire oil and gas investor George Kaiser is any indication. Kaiser, who built his fortune buying energy assets during downturns, is jumping back into the market, penning a $412 million natural gas deal with Chesapeake Energy and buying $50 million in shares from Sand-Ridge Energy, a 5% stake in the gas producer.

Kaiser’s moves aren’t the only good omen: Billionaire investor Kirk Kerkorian strengthened his position in Delta Petroleum last month by 2 million shares, and in December natural gas producer El Paso became the first company since October to succeed in selling high-yield debt. But even as smart money trickles back, the cautious nature of Kaiser's and Kerkorian’s deals signal that tough times may still be coming down the pipe.