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|
|Reductions to Current Shares||3|
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. (NYSE:VLO) representing 11.4% of his portfolio, which is 0.06% of shares outstanding.
- Southwestern Energy Company (NYSE:SWN) representing 10.8% of his portfolio, which is 0.09% of shares outstanding.
- Pioneer Natural Resources Company (NYSE:PX) representing 10.6% of his portfolio, which is 0.08% of shares outstanding.
- EOG Resources (NYSE:EOG) representing 8.3% of his portfolio, which is 0.03% of shares outstanding.
- Devon Energy Corp. (NYSE:DVN) representing 7.5% of his portfolio, which is 0.03% of shares outstanding.
He increased his stake in four companies, two of which are in his top holdings: Valero Energy Corp., Southwestern Energy Company, SandRidge Energy Inc. (SD) and Andarko Petroleum Corp. (NYSE: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 (NYSE:HAL)
Pickens has had intermittent holdings of Halliburton Company (NYSE: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 (NYSE: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. (NYSE:CNX)
As with Halliburton, Consol Energy Inc. (NYSE: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.