Energy stock Guru, T. Boone Pickens, founder of private equity
firm BP Capital, has reported 20 third quarter updates to his
portfolio:
|
Adds to Current Shares
|
4 |
|
New Buys
|
3 |
|
Reductions to Current Shares
|
3 |
|
Sold Out
|
10 |
As of the end of the third quarter, Pickens reported a stock
lineup of 25 stocks in his portfolio, valued about $99 million,
with a quarter-over-quarter turnover rate of 18 percent.
Currently, his
top five holdings
are:
- Valero Energy Corp. (
VLO
) representing 11.4% of his portfolio, which is 0.06% of shares
outstanding.
- Southwestern Energy Company (
SWN
) representing 10.8% of his portfolio, which is 0.09% of shares
outstanding.
- Pioneer Natural Resources Company (
PX
) representing 10.6% of his portfolio, which is 0.08% of shares
outstanding.
- EOG Resources (
EOG
) representing 8.3% of his portfolio, which is 0.03% of shares
outstanding.
- Devon Energy Corp. (
DVN
) representing 7.5% of his portfolio, which is 0.03% of shares
outstanding.
Among his third quarter transactions, he reduced his holding of
three companies: Transocean Ltd. (
RIG
), National Oilwell Varco Inc. (
NOV
) and Weatherford International Ltd. (
WFT
).
He increased his stake in four companies, two of which are in his
top holdings: Valero Energy Corp., Southwestern Energy Company,
SandRidge Energy Inc. (
SWN
) and Andarko Petroleum Corp. (
APC
).
The transaction that made the most impact to his portfolio was
his complete sell of his stake in Encana Corp. (
ECA
), which created a 5.4 percent cavity to his total holdings.
Below are three of Pickens' newest stocks as of the end of the
third quarter.
Halliburton Company (
HAL
)
Pickens has had intermittent holdings of Halliburton Company (
HAL
) for several years, having sold all his shares of the company a
total of four times in the past.
Pickens' latest holding with Haliburton Company (
HAL
) amounts to 152,334 shares, a transaction that produced the
second largest impact to his portfolio among his third quarter
updates.
With a market cap of $28.35 billion, Halliburton operates in
approximately 80 countries, serving "the upstream oil and gas
industry throughout the lifecycle of the reservoir - from
locating hydrocarbons and managing geological data, to drilling
and formation evaluation, well construction and completion, and
optimizing production through the life of the field," according
to its website.
Its two
Good Signs
and its
Profitability and Growth
rank of 8 out of 10 indicate a consistent growth in per share
revenue and earnings, as seen in its history below. Halliburton's
P/E ratio is also close to its 10-year low.
HAL data by GuruFocus.com
While Halliburton is ranked a Financial Strength of 8 out of 10
on GuruFocus, it shows a free cash flow that's declining in the
last five years, as it steadily and increasingly incurs a
long-term debt.
Thus, Halliburton's Business Predictability rank falls low at two
stars.
Currently, Halliburton is trading at $30.35 per share, and has a
P/E ratio of 9.8, a P/B ratio of 1.9 and a P.S ratio of 1.1. View
the rest of the company's 10-Year Financials to see where it
stands financially.
Consol Energy Inc. (
CNX
)
As with Halliburton, Consol Energy Inc. (
CNX
) has also been in Pickens' portfolio in the past, having
completely sold his shares of the company three times in the
past, as he bought back the shares in the quarters in between.
Pickens' recent holding of Consol Energy amounted to a total of
48,075 shares.
With a market cap of $7.5 billion, Consol Energy is a
Pittsburgh-based producer of coal and natural gas. It is
currently trading at $32.19, only five above its minimum share
price of $27.
Consol Energy, too, has a low P/E ratio, this time, within the
time frame of the past three years. Its expanding operating
margin and earnings per share warrants its Profitability and
Growth rank of 9 out of 10.
CNX data by GuruFocus.com
Although its revenue, in a 10-year time frame, has had a positive
growth rate of 11.6%, it has actually been in decline in the last
12 months. Its Financial Strength is currently ranked 5 out of 10
on GuruFocus.
View Consol Energy's 10-Year Financials to see where it stands
financially.
Arch Coal Inc. (
ACI
)
Pickens' newest holding of Arch Coal (
ACI
) amounted to 237,700 shares.
With a market cap of $1.56 billion, Arch Coal is a large coal
producer, differentiating its business from other coal producers
by "supplying cleaner-burning, low-sulfur thermal and
metallurgical coal to power generators and steel manufacturers,"
according to its website. The company has mining sites in
Wyoming, Utah, Colorago, Illinois, West Virginia, Kentucky,
Virginia and Maryland.
Arch Coal is currently trading near its all-time low, at $6.46
per share. The highest its share price had ever been was in June
2008, when it sold for about $75 per share.
ACI data by GuruFocus.com
Ranked 4 out of 10 in Business Predictability, GuruFocus
categorizes Arch Coal under an alarming 7 Warning Signs.
The Warning Signs reveal such details as a declining operating
margin, an "extremely low" interest coverage, an asset growth
faster than its revenue growth, and an Altman Z-Score in the
distressed zone, just to name a few.
ACI data by GuruFocus.com
Additionally, Arch Coal also suffers 6 Medium Warning Signs,
which indicate a dividend yield close to a one-year low, a P/E
ratio close to a one-year high, and a slow down in per share
revenue.
To see where else Arch Coal financially stands as a company,
visit its 10-Year Financials.
To read more about T. Boone Pickens, view our GuruFocus article
archives. Also view the rest of his third quarter portfolio
updates here, as well as his undervalued stocks, top growth
companies and high yield stocks.About GuruFocus: GuruFocus.com
tracks the stocks picks and portfolio holdings of the world's
best investors. This value investing site offers stock screeners
and valuation tools. And publishes daily articles tracking the
latest moves of the world's best investors. GuruFocus also
provides promising stock ideas in 3 monthly newsletters sent to
Premium Members
.