10-year

10-Year Anniversary Promotion (20% off)

Join GuruFocus Premium Membership Now for Only $279/Year

Once a decade discount

Save up to $500 on Global Membership.

Don't Miss It !

Free 7-day Trial
All Articles and Columns »

Pickens Talks About Pickens Plan; Top Holdings: MMR, BP, SU, CHK, APA, WFT

November 17, 2010 | About:
T. Boone Pickens was a guest on CNBC Wednesday morning talking about the Pickens Plan and the need to reduce our dependence on foreign oil.

CNBC’s summary of the conversation quotes Boone as saying,

“We need to get off OPEC oil, and that’s what I want. Right now, with two wars in the Middle East (Iraq and Afghanistan), we are importing oil from the enemy.

“We’re getting on average 70 percent of our oil from foreign sources and we need to reduce that. It’s a security issue as far as I’m concerned. I don’t mind getting oil from Canada, but not the Middle East. This has put us close to disaster.”

A centerpiece of the Pickens Plan is to move 18-wheelers off imported diesel and onto domestic natural gas. Boone said:

“It would take seven years to accomplish the transfer of the 8 million trucks to natural gas at a cost of about $65,000 per truck. You would end up cutting OPEC oil imports in half by doing that. It would be 2 and a half million barrels a day instead of 5 million.”

























Besides his many ventures, Pickens has a money management firm called BP Capital, through which Pickens invests mostly in Oil & Gas companies:

Industry2010-06-302010-09-30
Industrials2%1.8%
Basic Materials2.2%1.9%
Oil & Gas92.7%92.4%


Here are the top holdings in Pickens’s September 30, 2010 portfolio.

No. 1: McMoRan Exploration Co. (MMR), Weightings: 7.22% - 1,171,660 Shares

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 $1.56 billion; its shares were traded at around $16.29 with and P/S ratio of 3.5.



No. 2: BP p.l.c. (BP), Weightings: 7.1% - 481,373 Shares

BP p.l.c. is the holding company of one of the world's largest petroleum and petrochemicals groups. Bp P.l.c. has a market cap of $130.83 billion; its shares were traded at around $41.78 with a P/E ratio of 5.8 and P/S ratio of 0.6. Bp P.l.c. had an annual average earning growth of 20.3% over the past 10 years. GuruFocus rated Bp P.l.c. the business predictability rank of 3-star.



No. 3: Suncor Energy Inc. (SU), Weightings: 6.61% - 567,119 Shares

SUNCOR ENERGY is a world leader in mining and extracting crude oil from the vast oil sands deposits of northern Alberta. Suncor Energy Inc. has a market cap of $51.4 billion; its shares were traded at around $32.9 with a P/E ratio of 29.9 and P/S ratio of 2.1. The dividend yield of Suncor Energy Inc. stocks is 1.2%. Suncor Energy Inc. had an annual average earning growth of 17.5% over the past 10 years. GuruFocus rated Suncor Energy Inc. the business predictability rank of 2-star.



No. 4: Chesapeake Energy Corp. (CHK), Weightings: 6.03% - 743,348 Shares

Chesapeake Energy Corp. is an independent oil and gas company engaged in the development, exploration, acquisition and production of onshore natural gas and oil reserves. Chesapeake Energy Corp. has a market cap of $14.37 billion; its shares were traded at around $21.96 with a P/E ratio of 7.2 and P/S ratio of 1.9. The dividend yield of Chesapeake Energy Corp. stocks is 1.3%. Chesapeake Energy Corp. had an annual average earning growth of 14.7% over the past 10 years. GuruFocus rated Chesapeake Energy Corp. the business predictability rank of 2-star.



No. 5: Apache Corp. (APA), Weightings: 5.75% - 164,260 Shares

Apache Corporation is an independent energy company that explores for, develops and produces natural gas, crude oil and natural gas liquids. Apache Corp. has a market cap of $38.34 billion; its shares were traded at around $105.26 with a P/E ratio of 12.1 and P/S ratio of 4.5. The dividend yield of Apache Corp. stocks is 0.6%. Apache Corp. had an annual average earning growth of 16.6% over the past 10 years. GuruFocus rated Apache Corp. the business predictability rank of 3-star.



No. 6: Weatherford International, Ltd. (WFT), Weightings: 5.36% - 875,340 Shares

Weatherford International is one of the world's providers of equipment and services used for the drilling, completion and production of oil and natural gas wells. Weatherford International, Ltd. (switzerland) has a market cap of $14.2 billion; its shares were traded at around $19.16 with a P/E ratio of 51.7 and P/S ratio of 1.6. Weatherford International, Ltd. (switzerland) had an annual average earning growth of 18.5% over the past 10 years. GuruFocus rated Weatherford International, Ltd. (switzerland) the business predictability rank of 3.5-star.



Check out Pickens’s stock portfolio by clicking on T Boone Pickens

About the author:


Rating: 3.3/5 (6 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK