During the second quarter, T Boone Pickens of BP Capital Fund Advisors LLC acquired three new holdings associated with the energy and oil and gas industries. They are Williams Partners LP (WPZ, Financial), Newpark Resources Inc. (NR, Financial) and PBF Logistics LP (PBFX, Financial).
Pickens founded BP Capital in 1997 and invests largely in energy companies. He was one of the first oilmen to grow his company by acquisitions rather than exploration. Pickens believes the U.S. is undergoing a transformation in the way it produces and uses energy due to advances in technology. These advances offer new investment opportunities from which the firm plans to benefit. The firm holds stock in 54 companies and is worth $252 million. The quarter-over-quarter turnover rate is 28%.
Williams Partners
In Williams Partners, Pickens purchased 88,103 shares at an average price of $29.6 per share. The transaction had an impact of 1.2% on the portfolio.
Williams Partners is an energy infrastructure company that owns and operates midstream gathering and processing assets and interstate natural gas pipelines. It has a market cap of $21.5 billion with an enterprise value of $43.3 billion. It has a forward price-earnings (P/E) ratio of 60.2, a price-book (P/B) ratio of 1.02 and a price-sales (P/S) ratio of 2.8. GuruFocus ranked its financial strength 4 of 10 and its profitability and growth 8 of 10.
The company’s operating margin is 0.04%, and its net margin is -57.2%. Its Piotroski F-Score is 5, indicating a stable business condition. Its Altman Z-Score is 0.58, placing it in the distress zone, implying the possibility of bankruptcy in the near future.
Pickens previously sold out of Williams in the first quarter. Among the gurus invested in Williams, David Tepper (Trades, Portfolio) is the largest shareholder.
Newpark Resources
In Newpark, Pickens purchased 428,562 shares at an average price of $4.89 per share. The transaction had an impact of 0.98% on the portfolio.
Newpark is an international supplier to the oil and gas industry in the area of exploration. It has a market cap of $612.7 million with an enterprise value of $690.3 million. It has a P/B of 1.2 and a P/S of 1.1. GuruFocus ranked its financial strength 5 of 10 and its profitability and growth 5 of 10.
The company’s operating margin is -25.7% and its net margin is -21.5%. Its Piotroski F-Score is 2, indicating a poor business condition. Its Altman Z-Score is 2.03, placing it in the grey zone.
Among the gurus invested in Newpark, Chuck Royce (Trades, Portfolio) is the largest shareholder.
PBF Logistics
In PBF Logistics, Pickens purchased 91,968 shares at an average price of $20.9 per share. The transaction had an impact of 0.8% on the portfolio.
PBF Logistics is involved in the receiving, handling, transportation and storage of crude oil, refined products and intermediates. It has a market cap of $771.4 million with an enterprise value of $1.2 billion. It has a P/E of 10.2 with a forward P/E of 9.6. Its P/S is 4.9. GuruFocus ranked its financial strength 4 of 10 and its profitability and growth 6 of 10.
The company’s operating margin is 63.4%, and its net margin is 48.1%. Its Piotroski F-Score is 6, indicating a stable business condition. Its Altman Z-Score is 1.82, placing it in the grey zone.
Among the gurus invested in PBF, Jim Simons (Trades, Portfolio) is the largest shareholder.
Disclosure: I do not own stock in any companies mentioned in the article.
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