T Boone Pickens (Trades, Portfolio)’ BP Capital Fund divested five positions from the portfolio in the third quarter.
The energy sector composes the majority of Pickens’ portfolio of 54 stocks at 85.5%. Basic materials is the second-largest sector represented, followed by industrials, ETFs, options and preferred shares and utilities.
Pickens exited his positions in Enable Midstream Partners LP (ENBL, Financial), Noble Midstream Partners LP (NBLX, Financial), Delek Logistics Partners LP (DKL, Financial), Smart Sand Inc. (SND, Financial) and NuStar GP Holdings LLC (NSH, Financial).
Enable Midstream
The oil tycoon sold his remaining 237,289 shares of Enable Midstream for an average price of $14.94 per share, impacting the portfolio by -1.81%. According to GuruFocus estimates, Pickens has gained 11% on the investment since the second quarter of 2016.
The Oklahoma-based midstream company has a market cap of $9.63 billion; its shares were trading around $15.03 on Thursday with a price-earnings (P/E) ratio of 18.29, a price-book (P/B) ratio of 0.82 and a price-sales (P/S) ratio of 2.48.
The Peter Lynch chart below shows the stock is trading above its fair value.
GuruFocus ranked Enable’s financial strength 5 of 10 and its profitability and growth 6 of 10. The company’s trailing dividend yield is 8.48% and its forward dividend yield is 8.55%. The dividend payout ratio is 155%.
Jim Simons (Trades, Portfolio) also exited the stock in the third quarter.
Noble Midstream
Pickens sold 74,579 shares of Noble Midstream for an average price of $46.39, contracting the portfolio -1.62%. Based on GuruFocus estimates, he has lost 1% on the investment since the position was established in the first quarter.
The Houston-based midstream company has a market cap of $1.85 billion; its shares were trading around $51.45 on Thursday with a P/E ratio of 13.96, a P/B ratio of 6.73 and a P/S ratio of 7.74.
According to the Peter Lynch chart below, the stock is trading below its fair value.
GuruFocus ranked Noble’s financial strength 6 of 10 and its profitability and growth 4 of 10. The company’s trailing dividend yield is 3.42% and its forward dividend yield is 3.62%. The payout ratio is 35%.
During the quarter, Simons reduced his position in Noble Midstream by 74.76%. Ron Baron (Trades, Portfolio) is also a shareholder.
Delek Logistics
Pickens sold his remaining 55,983 shares of Delek Logistics for an average price of $31.47 per share, impacting the portfolio by -0.88%. GuruFocus estimates Pickens gained 8% on the investment since the fourth quarter of 2015.
The Tennessee-based pipeline operator has a market cap of $704.05 million; its shares were trading around $28.90 on Thursday with a P/E ratio 14.60 and a P/S ratio of 1.38.
Based on the Peter Lynch chart below, the stock appears to be trading slightly below its fair value.
GuruFocus ranked Delek’s financial strength 4 of 10 and its profitability and growth 5 of 10. The company’s trailing dividend yield is 9.78% and its forward dividend yield is 9.98%. The payout ratio is 138%.
Simons reduced his position by 1.43% during the quarter. He holds 0.05% of outstanding shares.
Smart Sand
The guru sold his remaining 151,681 shares of Smart Sand for an average price of $6.47 per share. The transaction had an impact of -0.65% on the portfolio. GuruFocus estimates he lost 58% on the investment since the position was established in the first quarter.
The Texas-based producer of raw Northern White frac sand has a market cap of $310.82 million; its shares were trading around $7.7 on Thursday with a P/E ratio of 13.06, a P/B ratio of 1.75 and a P/S ratio of 2.49.
The Peter Lynch chart below shows the stock is trading below its fair value.
GuruFocus ranked Smart Sand’s financial strength 8 of 10 and its profitability and growth 7 of 10. The company does not pay a dividend.
While Simons also reduced his Smart Sand holding, Hotchkis & Wiley and Chuck Royce (Trades, Portfolio) established positions in the third quarter.
NuStar
Pickens sold his remaining 54,186 shares of NuStar for an average price of $22.43 per share, impacting the portfolio -0.64%. According to GuruFocus estimates, he has lost 3% on the investment since the second quarter of 2016.
The Texas-based refiner has a market cap of $676.49 million; its shares were trading around $15.75 on Thursday with a P/E ratio of 7.97, a P/B ratio of 2.64 and a P/S ratio of 14.10.
According to the Peter Lynch chart below, the stock is trading below its fair value.
GuruFocus ranked NuStar’s financial strength 6 of 10 and its financial strength 7 of 10. The company’s trailing dividend yield is 13.84% and the forward dividend yield is 14.25%. The payout ratio is 110%.
Simons added to his position in NuStar during the quarter. He holds 0.16% of outstanding shares.
Pickens also trimmed his positions in Westlake Chemical Corp. (WLK, Financial), Cheniere Energy Inc. (LNG, Financial), Occidental Petroleum Corp. (OXY, Financial), Agrium Inc. (AGU, Financial) and Goodyear Tire & Rubber Co. (GT, Financial), among others, during the quarter.
Disclosure: I do not own any stocks mentioned.
