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T. Boone Pickens Buys 4 New Stocks, Sells 3 Others

Oil tycoon T Boone Pickens ( Trades , Portfolio ) gained four new holdings and sold out of three others during the final quarter of 2016.

Pickens established BP Capital Management in 1997. His firm invests largely in energy companies. His current portfolio is composed of 54 stocks and is valued at $319 million.

The guru's new holdings are Occidental Petroleum Corp. ( OXY ), Energy Transfer Partners LP ( ETP ), Western Refining Logistics LP ( WNRL ) and Midcoast Energy Partners LP ( MEP ).

After selling out of Occidental Petroleum in second-quarter 2016, Pickens established a new position of 125,462 shares for an average price of $71.02 per share. The trade expanded the portfolio 2.8%.

Occidental Petroleum is involved in the exploration and production of oil and gas. The Houston-based company has a market cap of $51.5 billion; its shares were trading around $67.32 on Wednesday with a forward price-earnings (P/E) ratio of 48.1, a price-book (P/B) ratio of 2.4 and a price-sales (P/S) ratio of 4.9.

The Peter Lynch chart below shows the stock is trading slightly below its fair value.

GuruFocus ranked Occidental's financial strength 4 of 10 and its profitability and growth 5 of 10. The trailing 12-month dividend yield is 4.6%, and the forward dividend yield is 4.5%. Over the past five years, Occidental has grown its dividend at a rate of 10.7% per year.

Barrow, Hanley, Mewhinney & Strauss is the company's largest guru shareholder with 2.4% of outstanding shares, which represents 1.9% of its total assets managed. In all, 18 gurus hold the stock.

After selling out of Energy Transfer Partners in second-quarter 2016, Pickens initiated a new holding of 108,900 shares, giving it 1.22% portfolio space. He paid an average price of $35.66 per share.

Energy Transfer Partners is a midstream oil and gas company. Headquartered in Dallas, it has a market cap of $32.6 billion; its shares were trading around $39.37 on Wednesday with a forward P/E ratio of 19.12, a P/B ratio of 1.1 and a P/S ratio of 0.8.

The Peter Lynch chart below shows the stock is trading above its fair value.

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GuruFocus ranked the company's financial strength 4 of 10 and its profitability and growth 7 of 10. The trailing 12-month dividend yield is 10.9%, and the forward dividend yield is 11.1%. Over the past five years, the dividend has grown at a rate of 2.5% per year.

David Tepper (Trades, Portfolio) is Energy Transfer Partners' largest shareholder among the gurus. He holds 1.4% of its outstanding shares, which represents 7.6% of his total assets managed. Leon Cooperman (Trades, Portfolio), Jim Simons (Trades, Portfolio) and Ronald Muhlenkamp (Trades, Portfolio) also have positions.

Pickens purchased 65,534 shares of Western Refining Logistics for an average price of $21.66 per share, expanding the portfolio by 0.44%.

Western Refining owns, operates, develops and acquires terminals, storage tanks, pipelines and other assets to transport and store oil. The El Paso, Texas-based company has a market cap of $1.5 billion; its shares were trading around $24.1 on Wednesday with a P/E ratio of 20.6, a P/B ratio of 14.04 and a P/S ratio of 0.5.

The Peter Lynch chart below shows the stock is trading above its fair value.

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GuruFocus ranked Western Refining's financial strength 5 of 10 and its profitability and growth 5 of 10. The trailing 12-month dividend yield is 6.9%, and the forward dividend yield is 7.3%.

Simons is the only other guru invested in the company. He holds 0.15% of its outstanding shares.

Pickens bought 62,554 shares of Midcoast Energy Partners for an average price of $7.4 per share. The transaction expanded the portfolio by 0.14%

Midcoast Energy gathers, processes and transports natural gas and natural gas liquids. The Houston-based midstream company has a market cap of $361.7 million; its shares were trading around $8 on Wednesday with a P/B ratio of 0.24 and a P/S ratio of 0.2.

The Peter Lynch chart below shows the stock is trading below its fair value.

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GuruFocus ranked Midcoast's financial strength 4 of 10 and its profitability and growth 3 of 10. The trailing 12-month dividend yield is 17.8%, and the forward dividend yield is 17.9%.

Pickens is the only guru invested in the company. He holds 0.14% of Midcoast's outstanding shares.

Pickens sold out of TriMas Corp. ( TRS ), Roadrunner Transportation Systems Inc. (RRTS) and Magellan Midstream Partners LP (MMP) during the quarter.

The guru sold his remaining 269,730 shares of TriMas for an average price of $20.41 per share. The trade impacted the portfolio by -1.8%.

Pickens sold his remaining 218,420 shares of Roadrunner Transportation for an average price of $9.27 per share. The trade had an impact of -0.62% on the portfolio.

Pickens sold 19,300 shares of Magellan Midstream Partners for an average price of $70.03 per share. The trade had an impact of -0.49% on the portfolio.

Disclosure: I do not own any stocks mentioned in the article.

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This article first appeared on GuruFocus .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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