T. Boone Pickens, billionaire, energy magnate and founder of
BP Capital, has been outspoken in support of the advancement of
the natural gas industry in the U.S., but said in May that he
exited natural gas stocks. He has also advocated exiting OPEC and
relying exclusively on domestic energy sources. The 12 new oil
positions in his second-quarter portfolio indicate that he
followed through on his
May comments to CNBC
"I see all the fundamentals for me are that oil goes up. I'm long
a little bit of oil but not much. I'd like to put a position on
because I do think we're going to see a tight market coming up.
Ninety-one million barrels a day is now what the demand is
globally, and I don't think the industry is going to be able to
fulfill that demand. It won't be easy. So what's going to happen
is supply is going to be short and you'll kill demand with price.
Now that's my whole theory on this. Let's talk in 30 days and see
if Boone knows what he's talking about."
The five largest new oil producer stocks Pickens purchased in the
second quarter are Pioneer Natural Resources (
), McMoran Exploration (
), Southwestern Energy Company (
), EOG Resources (
) and Quicksilver Resources (
Pioneer Natural Resources (
Pioneer Natural Resources was Pickens' largest oil company
purchase in the second quarter. He purchased 101,485 shares at an
average price of $100 per share, equating to 6.9% of his
Pickens mentioned in a
June interview with CNBC
that Pioneer, along with Continental, were among his favorite oil
stocks. "They're both oil plays and it's incredible how many
wells they have to drill, and this is great for our country. To
have these resources show up in America at this time has got to
be divine intervention," he said.
Pioneer Natural Resources is an oil and gas exploration and
production company with ownership interests in oil and gas
properties located in the U.S., Argentina, Canada, South Africa
and Gabon. Pioneer Natural Resources has a market cap of $12.09
billion; its shares were traded at around $99.98 with a P/E ratio
of 15.9 and P/S ratio of 4.3. The dividend yield of Pioneer
Natural Resources stocks is 0.1%. Pioneer Natural Resources had
an annual average earnings growth of 9.8% over the past 10 years.
GuruFocus rated Pioneer Natural Resources
the business predictability rank of 4-star
McMoRan Exploration (
Pickens re-opened a position in McMoRan after the price dropped
significantly. He purchased 678,421 shares at an average price of
$9 in the second quarter. In the first quarter, he sold out
1,096,134 shares at an average price of $13. The stock is up 46%
from his second-quarter purchase price.
McMoRan Exploration Co. is engaged in the exploration,
development and production of oil and gas offshore in the Gulf of
Mexico and onshore in the Gulf Coast region, and in the mining,
purchasing, transporting, terminaling, processing and marketing
of sulfur. McMoRan Exploration Co has a market cap of $2.26
billion; its shares were traded at around $13.62 with and P/S
ratio of 4.1.
Southwestern Energy Company (
Pickens purchased 264,085 shares of Southwestern Energy Company
when the stock declined to $29. He had previously exited his
position of 205,242 shares of the company when the price was at
$36 in the fourth quarter of 2010.
Southwestern Energy Company is an energy company primarily
focused on natural gas. Southwestern Energy Company has a market
cap of $11.19 billion; its shares were traded at around $32.26
with a P/E ratio of 21.1 and P/S ratio of 3.8. Southwestern
Energy Company had an annual average earnings growth of 26% over
the past 10 years. GuruFocus rated Southwestern Energy Company
the business predictability rank of 3.5-star
EOG Resources (
Pickens purchased 74,046 shares of EOG Resources at an average
price of $100 in the second quarter. He previously exited a
position of 106,458 shares at an average price of $93 in the
fourth quarter of 2011.
EOG Resources is engaged, either directly or through a marketing
subsidiary with regard to domestic operations or through various
subsidiaries with regard to international operations, in the
exploration for, and the development, production and marketing
of, natural gas and crude oil primarily in major producing basins
in the U.S., as well as in Canada and Trinidad. EOG Resources has
a market cap of $29.65 billion; its shares were traded at around
$110.93 with a P/E ratio of 25.5 and P/S ratio of 2.9. The
dividend yield of EOG Resources stocks is 0.6%. EOG Resources had
an annual average earnings growth of 14.9% over the past 10
years. GuruFocus rated EOG Resources the business predictability
rank of 2-star.
Quicksilver Resources (
Pickens purchased 1,216,616 shares of Quicksilver at an average
price of $4 in the second quarter of 2012. He had previously
exited a position of 614,774 shares at an average price of $14 in
the fourth quarter of 2010.
Quicksilver Resources Inc. is an exploration and production
company focusing on the development and production of natural gas
and oil properties onshore North America. Quicksilver Resources
Inc. has a market cap of $793.3 million; its shares were traded
at around $4.145 with and P/S ratio of 0.8.
See T. Boone Pickens' portfolio here. Also check out the
Undervalued Stocks, Top Growth Companies and High Yield stocks of
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