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T Boone Pickens Took Advantage of Price Weaknesses Caused by Oil Spill: BP, SLB, NE, APA, QEP

November 17, 2010 | About:
guruek

guruek

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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.”

























Pickens has a money management arm 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%


During the third quarter of 2010, Pickens took advantage of the price weaknesses in the Oil & Service sector caused by the BP oil spill in the Mexico Gulf, and bought the following stocks:

No. 1: BP p.l.c. (BP), Buy: 7.1% of the portfolio - Total: 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. 2: Schlumberger Ltd. (SLB), Buy: 4.65% of the portfolio - Total: 210,737 Shares

Schlumberger Limited is a global technology services company consisting of two business segments, Schlumberger Oilfield Services and SchlumbergerSema. Schlumberger Ltd. has a market cap of $100.2 billion; its shares were traded at around $73.18 with a P/E ratio of 27.4 and P/S ratio of 4.4. The dividend yield of Schlumberger Ltd. stocks is 1.1%. Schlumberger Ltd. had an annual average earning growth of 23.4% over the past 5 years.



No. 3: Noble Corp. (NE), Buy: 4.07% of the portfolio - Total: 336,000 Shares

Noble Corp. is a provider of diversified services for the oil and gas industry. Noble Corp. has a market cap of $9.33 billion; its shares were traded at around $36.46 with a P/E ratio of 8.3 and P/S ratio of 2.6. The dividend yield of Noble Corp. stocks is 1.4%. Noble Corp. had an annual average earning growth of 23.8% over the past 10 years. GuruFocus rated Noble Corp. the business predictability rank of 2-star.



No. 4: Apache Corp. (APA), Add: 3.06% of the portfolio - Total: 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. 5: QEP Resources Inc. (QEP), Buy: 1.83% of the portfolio - Total: 170,000 Shares

QEP Resources is a independent natural gas and oil exploration and production company. Qep Resources Inc. has a market cap of $5.76 billion; its shares were traded at around $32.88 with and P/S ratio of 2.7. The dividend yield of Qep Resources Inc. stocks is 0.1%.



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



Rating: 3.0/5 (5 votes)

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