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Oil and Gas Companies Berkshire Hathaway May Acquire: Anadarko Petroleum Corp., EOG Resources, Noble Energy, Southwestern Energy Company, and Hess Corp.

On March 19, Bloomberg reported that Warren Buffett, Chairman and CEO of Berkshire Hathaway, is seeking to spend $5 billion to $20 billion on an acquisition. He prefers “simple” businesses with pretax profit exceeding $75 million, “consistent earnings power,” “good” returns on equity and little or no debt. Bloomberg went on and stated that there are 50 U.S. companies with that much market value and profit, a return on equity exceeding 10 percent and a debt-to- equity ratio less than 50 percent, according to Bloomberg’s own data.

It is hard to imagine that Berkshire Hathaway will acquire another Oil and Gas company after Warren Buffett openly admitted that his purchase of ConocoPhillips (COP) was a mistake. Each company has to stand on its own investment merit regardless what Warren Buffett may or may not make a move on it.

GuruFocus dug into the list of companies and present information on company’s business, ownership of the Investment Gurus, and trade activity of insiders. The companies are grouped according to industries they operate in.

This part we treat five oil and gas companies: Anadarko Petroleum Corp., EOG Resources Inc., Noble Energy Inc., Southwestern Energy Company, and Hess Corp.

Symbol

Company

P/E

P/S

P/B

Yield (%)

ROA (%)

ROE (%)

Operating Margin (%)

Debt to Equity (%)

APC

Anadarko Petroleum Corp.

8.60

1.30

1.10

0.80

4.78

13.33

14.90

0.58

EOG

EOG Resources Inc.

8.50

2.20

1.70

0.80

12.75

23.09

26.89

0.21

NBL

Noble Energy Inc.

7.70

2.40

1.50

1.40

10.55

22.54

32.27

0.36

SWN

Southwestern Energy Company

22.10

5

4.70

0

12.36

27.45

23.03

0.27

HES

Hess Corp.

8.80

0.50

1.80

0.60

8.23

20.57

5.78

0.31



Anadarko Petroleum Corp. (APC)

Anadarko Petroleum Corporation is one of the world's largest independent oil and gas exploration and production companies. Majority of the company's total proved reserves are located in the U.S. primarily in the mid-continent (Kansas Oklahoma and Texas) area and offshore in the Gulf of Mexico and in Alaska. Most of the company's production is domestic and the remainder is from Algeria. The company also owns and operates gas gathering systems in its U.S. core producing areas.

Anadarko Petroleum Corp. has a market cap of $19.74 billion; its shares were traded at around $42.92 with a P/E ratio of 8.7 and P/S ratio of 1.3. The dividend yield of Anadarko Petroleum Corp. stocks is 0.8%. Anadarko Petroleum Corp. had an annual average earning growth of 28% over the past 10 years. GuruFocus rated Anadarko Petroleum Corp. the business predictability rank of 3.5-star.

Anadarko Petroleum Corp. is owned by 7 Gurus.

5 Gurus Kept Positions in APC Unchanged or Slightly Adjusted: David Williams owns 2,500,000 shares as of 12/31/2008, which accounts for 1.75% of the $5.52 billion portfolio of Columbia Value and Restructuring Fund. Brian Rogers owns 3,000,000 shares as of 12/31/2008, which accounts for 0.86% of the $13.49 billion portfolio of T Rowe Price Equity Income Fund. David Dreman owns 5,838,589 shares as of 12/31/2008, which accounts for 2.91% of the $7.73 billion portfolio of Dreman Value Management. Kenneth Fisher owns 9,821,283 shares as of 12/31/2008, which accounts for 1.62% of the $23.44 billion portfolio of Fisher Asset Management, LLC. Dodge & Cox owns 34,458 shares as of 12/31/2008, which accounts for less than 0.01% of the $65.51 billion portfolio of Dodge & Cox.

2 Gurus Reduced Positions in APC: Carl Icahn owns 7,617,876 shares as of 12/31/2008, a decrease of 52.64% of from the previous quarter. This position accounts for 10.47% of the $2.8 billion portfolio of Icahn Capital Management LP. David Tepper owns 90,594 shares as of 12/31/2008, a decrease of 67.53% of from the previous quarter. This position accounts for 0.74% of the $572 million portfolio of APPALOOSA MANAGEMENT LP. 1 Guru Sold Out APC: Robert Olstein sold out his holdings in the quarter that ended on 12/31/2008.

Recent Trades of Anadarko Petroleum Corp. by CEO: Buy: Chairman, President & CEO, Director James T Hackett bought 18,000 shares of APC stock on 02/19/2009 at the average price of $35.91; the price of the stock has increased by 19.52% since.

EOG Resources Inc.(EOG)

EOG Resources Inc. is engaged either directly or through a marketing subsidiary with regard to domestic operations or through various subsidiaries with regard to international operations in the exploration for and the development production and marketing of natural gas and crude oil primarily in major producing basins in the United States as well as in Canada and Trinidad.

EOG Resources Inc. has a market cap of $15.48 billion; its shares were traded at around $61.99 with a P/E ratio of 8.3 and P/S ratio of 2.1. The dividend yield of EOG Resources Inc. stocks is 0.8%. EOG Resources Inc. had an annual average earning growth of 24.5% over the past 10 years. GuruFocus rated EOG Resources Inc. the business predictability rank of 4.5-star.

EOG Resources Inc. is owned by 5 Gurus. 2 Gurus Initiated Positions in EOG: NWQ Managers bought 2,699,773 shares in the quarter that ended on 12/31/2008, which is 1.18% of the $15.24 billion portfolio of NWQ Investment Management Co. Wallace Weitz bought 2,300 shares in the quarter that ended on 12/31/2008, which is 0.01% of the $1.61 billion portfolio of Weitz Wallace R & Co.

1 Guru Increased Positions in EOG: PRIMECAP Management owns 5,422,600 shares as of 12/31/2008, an increase of 22.71% from the previous quarter. This position accounts for 0.83% of the $43.42 billion portfolio of PRIMECAP Management.

2 Gurus Kept Positions in EOG Unchanged or Slightly Adjusted: Chris Davis owns 23,775,296 shares as of 12/31/2008, which accounts for 3.01% of the $52.56 billion portfolio of Davis Selected Advisers. Kenneth Fisher owns 292,440 shares as of 12/31/2008, which accounts for 0.08% of the $23.44 billion portfolio of Fisher Asset Management, LLC.

Recent Trades of EOG Resources Inc. by Directors and Officers: Sell: Director Frank G Wisner sold 14,000 shares of EOG stock on 02/06/2009 at the average price of $67.43; the price of the stock has decreased by 8.07% since. Sell: Director Frank G Wisner sold 14,000 more shares of EOG stock on 01/15/2009 at the average price of $63.02; the price of the stock has decreased by 1.63% since.

Noble Energy Inc. (NBL)

Noble Energy the parent company of Samedan Oil Corporation Noble Gas Marketing Inc. and Noble Trading Inc. is one of the nation's leading independent energy companies. Noble Energy operates throughout major basins in the United Stated including the Gulf of Mexico as well as internationally in Argentina China Ecuador Equatorial Guinea the Mediterranean Sea the North Sea and Vietnam. Noble Energy Inc. has a market cap of $9.63 billion; its shares were traded at around $55.72 with a P/E ratio of 7.9 and P/S ratio of 2.5. The dividend yield of Noble Energy Inc. stocks is 1.4%. Noble Energy Inc. had an annual average earning growth of 14.7% over the past 10 years. GuruFocus rated Noble Energy Inc. the business predictability rank of 1-star.

Noble Energy Inc. is owned by 4 Gurus. All 4 Gurus Kept Positions in NBL Unchanged or Slightly Adjusted: PRIMECAP Management owns 8,384,322 shares as of 12/31/2008, which accounts for 0.95% of the $43.42 billion portfolio of PRIMECAP Management. David Williams owns 2,200,000 shares as of 12/31/2008, which accounts for 1.97% of the $5.52 billion portfolio of Columbia Value and Restructuring Fund. David Dreman owns 64,947 shares as of 12/31/2008, which accounts for 0.04% of the $7.73 billion portfolio of Dreman Value Management. NWQ Managers owns 12,318,104 shares as of 12/31/2008, which accounts for 3.98% of the $15.24 billion portfolio of NWQ Investment Management Co.

Recent Trades of Noble Energy Inc. by Directors and Officers: Sell: Director Thomas J Edelman sold 70,600 shares of NBL stock on 03/10/2009 at the average price of $45.56; the price of the stock has increased by 22.3% since. Sell: Director Thomas J Edelman sold 129,400 more shares of NBL stock on 03/10/2009 at the average price of $45.14; the price of the stock has increased by 23.44% since. Sell: Director Thomas J Edelman sold 112,726 more shares of NBL stock on 03/09/2009 at the average price of $43.25; the price of the stock has increased by 28.83% since.

Southwestern Energy Company (SWN)

Southwestern Energy Company is an energy company primarily focused on natural gas. They are involved in the following business segments: Exploration and Production - Engaged in natural gas and oil exploration development and production. This represents their primary business; Natural Gas Distribution - Engaged in the gathering distribution and transmission of natural gas; Marketing and Transportation - Provides marketing and transportation services in their core areas of operation and owns a 25% interest in the NOARK Pipeline System Limited Partnership. Southwestern Energy Company has a market cap of $11.64 billion; its shares were traded at around $33.88 with a P/E ratio of 22.1 and P/S ratio of 5. Southwestern Energy Company had an annual average earning growth of 14.2% over the past 10 years. GuruFocus rated Southwestern Energy Company the business predictability rank of 2-star.

Southwestern Energy Company is owned by 3 Gurus. 1 Guru Initiated Positions in SWN: NWQ Managers bought 19,700 shares in the quarter that ended on 12/31/2008, which is less than 0.01% of the $15.24 billion portfolio of NWQ Investment Management Co.

1 Guru Kept Positions in SWN Unchanged or Slightly Adjusted: John Keeley owns 41,000 shares as of 12/31/2008, which accounts for 0.02% of the $6 billion portfolio of Keeley Fund Management.

1 Guru Reduced Positions in SWN: Ruane Cunniff owns 57,902 shares as of 12/31/2008, a decrease of 93.1% of from the previous quarter. This position accounts for 0.02% of the $6.97 billion portfolio of Ruane & Cunniff & Goldfarb Inc.

Recent Trades of Southwestern Energy Company by CEO: Sell: Chairman and CEO Harold M Korell sold 46,200 shares of SWN stock on 03/25/2009 at the average price of $33.65; the price of the stock has increased by 0.68% since. Sell: Chairman and CEO Harold M Korell sold 51,700 more shares of SWN stock on 03/20/2009 at the average price of $32.08; the price of the stock has increased by 5.61% since. Sell: Chairman and CEO Harold M Korell sold 49,800 more shares of SWN stock on 03/06/2009 at the average price of $29.54; the price of the stock has increased by 14.69% since.

Hess Corp. (HES)

Hess Corporation is a global integrated energy company engaged in the exploration for and the production purchase transportation and sale of crude oil and natural gas as well as the production and sale of refined petroleum products electricity.

Hess Corp. has a market cap of $20.74 billion; its shares were traded at around $63.59 with a P/E ratio of 8.7 and P/S ratio of 0.5. The dividend yield of Hess Corp. stocks is 0.6%. Hess Corp. had an annual average earning growth of 19.2% over the past 10 years. GuruFocus rated Hess Corp. the business predictability rank of 3.5-star.

Hess Corp. is owned by 5 Gurus. 1 Guru Initiated Positions in HES: John Rogers bought 604,905 shares in the quarter that ended on 12/31/2008, which is 0.78% of the $4.14 billion portfolio of ARIEL CAPITAL MANAGEMENT LLC.

1 Guru Increased Positions in HES: George Soros owns 4,077,802 shares as of 12/31/2008, an increase of 95.49% from the previous quarter. This position accounts for 7.15% of the $3.06 billion portfolio of Soros Fund Management LLC.

3 Gurus Kept Positions in HES Unchanged or Slightly Adjusted: PRIMECAP Management owns 4,781,970 shares as of 12/31/2008, which accounts for 0.59% of the $43.42 billion portfolio of PRIMECAP Management. NWQ Managers owns 4,527,902 shares as of 12/31/2008, which accounts for 1.6% of the $15.24 billion portfolio of NWQ Investment Management Co. Dodge & Cox owns 28,927 shares as of 12/31/2008, which accounts for less than 0.01% of the $65.51 billion portfolio of Dodge & Cox.

2 Gurus Sold Out HES: Ken Heebner sold out his holdings in the quarter that ended on 12/31/2008. David Dreman sold out his holdings in the quarter that ended on 12/31/2008.

Recent Trades of Hess Corp. by CEO: Buy: Chairman of the Board and CEO, Director, 10% Owner John B Hess bought 195,500 shares of HES stock on 12/19/2008 at the average price of $48.08; the price of the stock has increased by 32.26% since.

Recent Trades of Hess Corp. by Directors and Officers: Sell: Executive Vice President, Director J Barclay Collins sold 11,838 shares of HES stock on 02/02/2009 at the average price of $53.96; the price of the stock has increased by 17.85% since. Sell: Senior Vice President Howard Paver sold 4,920 shares of HES stock on 02/02/2009 at the average price of $53.96; the price of the stock has increased by 17.85% since. Sell: Senior Vice President John P Rielly sold 9,793 shares of HES stock on 02/02/2009 at the average price of $53.96; the price of the stock has increased by 17.85% since. Sell: Senior Vice President John J Scelfo sold 17,106 shares of HES stock on 02/02/2009 at the average price of $54.26; the price of the stock has increased by 17.19% since. Sell: Senior Vice President Brian J Bohling sold 8,436 shares of HES stock on 02/02/2009 at the average price of $53.96; the price of the stock has increased by 17.85% since.


Rating: 3.3/5 (6 votes)

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