Oil guru T. Boone Pickens purchased three new stakes and sold out of 13 as the price of WTI crude oil slid another 20% in the third quarter.
Pickens had earlier in the year predicted oil prices would rise to $70 per barrel by the end of the year, which he called “maybe a bad call” this week, incorrectly thinking he had seen the bottom.
“If I’m off, I may be off by six months,” he told Bloomberg.
Pickens is an energy investor who in 1997 founded BP Capital, a firm that operates hedge funds and separately managed accounts through its registered investment advisor, TBP Investments Management. His 17 energy positions were valued at $37 million, a significant change from the 36 stocks he held at second quarter-end.
The three new third-quarter positions Pickens added to his TBP Investments portfolio were in smaller companies with more room to recover, he said: Synergy Resources Corp. (SYRG, Financial), PDC Energy Inc. (PDCE, Financial) and Whiting Petroleum Corp. (WLL, Financial).
Pickens also exited these largest positions: Patterson-UTI Energy Inc. (PTEN, Financial), Range Resources Corp. (RRC, Financial), Suncor Energy Inc. (SU, Financial), Baker Hughes Inc. (BHI, Financial) and Apache Corp. (APA, Financial).
Whiting Petroleum Corp. (WLL, Financial)
His largest new holding worth 4.3% of the portfolio, Pickens bought 105,000 shares of Whiting Petroleum Corp. Its shares traded around $21 on average for the quarter.
Whiting Petroleum Corp. was incorporated in July 2003. Whiting Petroleum Corp. has a market cap of $3.43 billion; its shares were traded at around $16.81 with and P/S ratio of 1.28. Whiting Petroleum Corp. had an annual average earnings growth of 10.9% over the past 10 years.
PDC Energy Inc. (PDCE, Financial)
Pickens purchased 9,101 shares of PDC Energy Inc., a 1.3% portfolio weight. Its shares traded at $51 on average.
PDC Energy Inc. was founded in 1969. The company is a domestic independent exploration and production company that produces, develops, acquires and explores for crude oil, natural gas and NGLs with main operations in the Wattenberg Field in Colorado, the Utica Shale in southeastern Ohio and the Appalachia-Marcellus Shale in northern West Virginia. PDC Energy Inc. has a market cap of $2.41 billion; its shares were traded at around $60.10 with a P/E ratio of 31.78 and P/S ratio of 2.77. PDC Energy Inc. had an annual average earnings growth of 17.5% over the past five years.
Synergy Resources Corp. (SYRG, Financial)
Pickens purchased 32,331 shares of Synergy Resources Corp., a 0.85% portfolio weight. Its shares were priced at $10 on average.
Synergy Resources Corp. was incorporated in Colorado under the name Blue Star Energy Inc. In December 2007, the company changed its name to Brishlin Resources Inc. The company is in its exploration stage and is engaged in oil and gas acquisitions, exploration, development and production activities, mainly in the area known as the Denver-Julesburg Basin. Synergy Resources Corp. has a market cap of $1.22 billion; its shares were traded at around $11.60 with a P/E ratio of 27.57 and P/S ratio of 8.87.
Sells
Patterson-UTI Energy Inc. (PTEN, Financial)
Pickens unloaded 228,300 shares of Patterson-UTI Energy Inc., a 5.4% trade impact to his portfolio.
Patterson-UTI Energy Inc., a Delaware corporation was formed in 1978. Patterson-UTI Energy Inc. has a market cap of $2.37 billion; its shares were traded at around $16.07 with and P/S ratio of 0.95. The dividend yield of Patterson-UTI Energy Inc. stocks is 2.48%. Patterson-UTI Energy Inc. had an annual average earnings growth of 7.8% over the past 10 years.
Range Resources Corp. (RRC, Financial)
Pickens sold 77,200 shares of Range Resources, a 4.8% impact to the portfolio.
Range Resources Corp. was incorporated in Delaware in 1980. Range Resources Corp. has a market cap of $5.29 billion; its shares were traded at around $31.26 with and P/S ratio of 2.52. The dividend yield of Range Resources Corp stocks is 0.50%. Range Resources Corp. had an annual average earnings growth of 10.2% over the past 10 years. GuruFocus rated Range Resources Corp. the business predictability rank of 3-star.
Suncor Energy Inc. (SU, Financial)
Pickens sold 130,000 shares of Suncor Energy Inc., a 4.5% trade impact to the portfolio.
Suncor Energy Inc., formerly known as Suncor Inc., was originally formed by the amalgamation under the Canada Business Corporations Act on Aug. 22, 1979, of Sun Oil Company Ltd., incorporated in 1923, and Great Canadian Oil Sands Limited Inc. in 1953. Suncor Energy Inc. has a market cap of $40.17 billion; its shares were traded at around $27.79 with a P/E ratio of 637.61 and P/S ratio of 1.67. The dividend yield of Suncor Energy Inc. stocks is 3.27%. Suncor Energy Inc. had an annual average earnings growth of 10.5% over the past 10 years. GuruFocus rated Suncor Energy Inc. the business predictability rank of 2.5-star.
Baker Hughes Inc. (BHI, Financial)
Pickens sold 50,603 shares of Baker Hughes Inc., a 3.93% trade impact to the portfolio.
Baker Hughes Inc. is a Delaware corporation which was formed in April 1987. Baker Hughes Inc has a market cap of $22.19 billion; its shares were traded at around $50.88 with and P/S ratio of 1.17. The dividend yield of Baker Hughes Inc. stocks is 1.32%. Baker Hughes Inc. had an annual average earnings growth of 5.3% over the past 10 years. GuruFocus rated Baker Hughes Inc. the business predictability rank of 3-star.
Pickens sold 53,000 shares Apache Corp., a 3.85% portfolio weight.
Apache Corp. is a Delaware corporation formed in 1954, 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 $18.72 billion; its shares were traded at around $49.53 with and P/S ratio of 2.11. The dividend yield of Apache Corp. stocks is 2.01%. Apache Corporation had an annual average earnings growth of 5.9% over the past 10 years. GuruFocus rated Apache Corporation the business predictability rank of 2.5-star.
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