T. Boone Pickens made his money in oil. Although in the recent years, he has diversified into other energy segments, he is still very much in the game. He manages BP Capital that is dedicated to Oil & Gas companies. The fund has about $280 million invested in about 29 stocks, most of them are Oil & Gas company.
Steven Romick, portfolio manager of FPA Crescent Fund, is all-asset class manager, and right now, he has his eyes on some discrete Oil & Gas companies.
As it is said, the great minds think alike. There are some overlaps in two portfolios of Pickens and Romick. These are the stocks the two Investment Gurus purchased and owned as of the end of the third quarter of 2010:
|Symbol||Steven Romick||T Boone Pickens|
|Share||Value ($1000s)||Change||Share||Value ($1000s)||Change|
Occidental Petroleum Corp. (NYSE:OXY)
Steven Romick owns 1,268,000 shares of OXY, valued as $98 million as of Jun. 30, 2010, which accounts for 6.24% of his equity portfolio. T Boone Pickens owns 74,783 shares of OXY, valued as $6 million as of Sep. 30, 2010, which accounts for 2.1% of his equity portfolio.
Occidental Petroleum Corp. explores for, develops, produces and markets crude oil and natural gas and manufactures and markets a variety of basic chemicals, including chlorine, caustic soda, and ethylene dichloride, as well as specialty chemicals and vinyls, including polyvinyl chloride resins and vinyl chloride monomer. Occidental Petroleum Corp. has a market cap of $69.17 billion; its shares were traded at around $85.17 with a P/E ratio of 15.8 and P/S ratio of 4.5. The dividend yield of Occidental Petroleum Corp. stocks is 1.8%. Occidental Petroleum Corp. had an annual average earning growth of 13.6% over the past 10 years.
Recently, Romick made the following comments on OXY in his interview with Businessweek:
They're a large exploration and production company. It's a business we like because it will benefit from oil being worth more in the future. It's really that simple. Every year you pull oil out, you're depleting your reserve. You then have to buy oil to replace it. Five years ago the oil companies said they'd have X amount in reserves in 2010. Occidental Petroleum (OXY) is the only large oil company that has actually met their projected reserve replacement—the goals that they laid out for themselves.
Apache Corp. (NYSE:APA)Steven Romick owns 655,000 shares of APA, valued as $55 million as of Jun. 30, 2010, which accounts for 3.52% of his equity portfolio. T Boone Pickens owns 164,260 shares of APA, valued as $16 million as of Sep. 30, 2010, which accounts for 5.75% of his equity portfolio.
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.
Chevron Corp. (NYSE:CVX)Steven Romick owns 298,300 shares of CVX, valued as $20 million as of Jun. 30, 2010, which accounts for 1.29% of his equity portfolio. T Boone Pickens owns 97,120 shares of CVX, valued as $8 million as of Sep. 30, 2010, which accounts for 2.82% of his equity portfolio.
Chevron is the fifth-largest integrated energy company in the world. Chevron Corp. has a market cap of $165.83 billion; its shares were traded at around $82.48 with a P/E ratio of 9.7 and P/S ratio of 1. The dividend yield of Chevron Corp. stocks is 3.5%. Chevron Corp. had an annual average earning growth of 12.5% over the past 10 years. GuruFocus rated Chevron Corp. the business predictability rank of 3.5-star.
Again, in the interview with Businessweek, Romick commented on CVX:
U.S. health-care spending is likely to grow faster than gross domestic product for the foreseeable future. Big chain pharmacies should continue to take market share from independent drugstores. We like CVS's (CVS) integrated model—it's a pharmacy and a prescription benefits manager. Prescriptions for generic drugs are increasing at a rate faster than branded drugs, and that's more profitable for pharmacies. CVS's valuation seems reasonable at less than 11 times its expected earnings for 2011.
Check out Romick’s stock portfolio, click on Steven Romick.
Check out Pickens’s stock portfolio, click on T Boone Pickens.
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