T Boone Pickens (Trades, Portfolio) of BP Capital acquired five new holdings in the third quarter.
Pickens purchased 224,779 shares in Range Resources Corp. (RRC, Financial) for an average price of $40.45 per share. The transaction had an impact of 3.1% on the portfolio.
Range Resources is a Texas-based oil and gas company. It has a market cap of $7.9 billion with an enterprise value of $11.7 billion. It has a forward price-earnings (P/E) ratio of 97.1, a price-book (P/B) ratio of 1.5 and a price-sales (P/S) ratio of 4.4.
GuruFocus ranked the company’s financial strength 4 of 10. The low Piotroski F-Score of 2 and Altman Z-Score of 0.6 suggest the company is in poor financial condition with a chance of bankruptcy in the near future. This is most likely due to the current condition of oil prices.
GuruFocus ranked Range’s profitability and growth 6 of 10. Both its operating margin and net margin are negative. The company’s return on equity (ROE) and return on assets (ROA) outperform 51% and 60% of other companies in the global oil and gas exploration and production industry. Similarly, its return on capital (ROC) outperforms 63% of competitors.
Andreas Halvorsen (Trades, Portfolio) is the company’s largest shareholder among the gurus with 3.8% of outstanding shares, which is 1.7% of his total assets managed. In all, 15 gurus hold positions.
The DCF Calculator gives the stock a fair value of $-43.45; it was trading at $31.99 on Monday.
The guru purchased 144,305 shares in ONEOK Partners LP (OKS, Financial) for an average price of $39.95 per share. The transaction had an impact of 2.1% on the portfolio.
ONEOK collects, processes, stores and transports natural gas. The company has a market cap of $11.3 billion with an enterprise value of $19.3 billion. It has a P/E of 30.8, a forward P/E of 16.3, a P/B of 1.8 and a P/S of 1.4.
GuruFocus ranked the company’s financial strength 4 of 10. The Piotroski F-Score of 6 and Altman Z-Score of 1.4 suggest the company is in stable financial condition with minor stress. The company’s return on invested capital (ROIC) outperforms its weighted average cost of capital (WACC).
GuruFocus ranked the company’s profitability and growth 5 of 10. It has an operating margin of 14.9% and a net margin of 9.7%. Its ROE and ROA outperform 51% and 65% of other companies in the global oil and gas midstream industry. Its ROC outperforms 64% of competitors.
Jim Simons (Trades, Portfolio) is the company’s largest shareholder among the gurus with 0.08% of outstanding shares, which is 0.02% of his total assets managed. John Hussman (Trades, Portfolio) also holds a position.
The DCF Calculator gives the stock a fair value of $13.7; it was trading at $39.56 on Monday.
Pickens purchased 132,471 shares in National Oilwell Varco Inc. (NOV, Financial) for an average price of $33.59 per share. The transaction had an impact of 1.7% on the portfolio.
The oilfield equipment manufacturer and provider has a market cap of $12.8 billion with an enterprise value of $14.6 billion. It has a P/B of 0.8 and a P/S of 1.5.
GuruFocus ranked the company’s financial strength 5 of 10. The Piotroski F-Score of 4 and Altman Z-Score of 1.7 suggest the company is in stable financial condition with signs of stress. Its cash-debt ratio of 0.5 is even with the industry median.
GuruFocus ranked the company’s profitability and growth 7 of 10. Its operating and net margins are negatives as are its returns. The ROE and ROA underperform 68% and 69% of other companies in the global oil and gas equipment and services industry. Similarly, its ROC underperforms 83% of competitors.
Dodge and Cox is the company’s largest shareholder among the gurus with 8.4% of outstanding shares, which is 1.1% of its total assets managed. In total, 15 gurus hold positions in National Oilwell Varco.
The DCF Calculator gives the stock a fair value of $-90.21; it was trading at $34.1 on Monday.
The investor purchased 77,521 shares in Rice Midstream Partners LP (RMP, Financial) for an average price of $21.03 per share. The transaction had an impact of 0.7% on the portfolio.
Rice Midstream is engaged in gathering and compressing natural gas. It also owns, operates develops and acquires assets in the Appalachian Basin. It has a market cap of $2.13 billion with an enterprise value of $2.12 billion. It has a P/E of 15.8, a P/B of 2.3 and a P/S of 8.8.
GuruFocus ranked Rice’s financial strength 9 of 10. It has a high Piotrsoki F-Score of 8 and a high Altman Z-Score of 54.4, indicating the company is financially healthy. The company has no debt.
GuruFocus ranked the company’s profitability and growth 5 of 10. It has an operating margin of 60.6% and a net margin of 58.2%. Its ROE and ROA outperform 81% and 88% of companies in the global oil and gas midstream industry. Its ROC outperforms 82% of competitors.
Simons is the only other guru shareholder in Rice with 0.17% of outstanding shares, which is 0.01% of his total assets managed.
The DCF Calculator gives the stock a fair value of $14.23; it was trading at $21 on Monday.
Pickens purchased 26,069 shares in Williams Companies Inc. (WMB, Financial) for an average price of $26.54 per share. The transaction had an impact of 0.3% on the portfolio.
The energy infrastructure company has a market cap of $22.8 billion with an enterprise value of $56.8 billion. It has a forward P/E of 23.5, a P/B of 4.6 and a P/S of 3.1.
GuruFocus ranked Williams’ financial strength 3 of 10. The Piotroski F-Score of 4 and Altman Z-Score of 0.1 indicate the company is financially stable but does show indications of financial stress.
GuruFocus ranked the company’s profitability and growth 5 of 10. Its margins and returns are negative. The operating margin is -8.6% and the net margin is -15.4%. The ROE and ROA underperform 83% and 76% of other companies in the global oil and gas midstream industry. Its ROC underperforms 81% of competitors.
Larry Robbins (Trades, Portfolio) is Williams’ largest shareholder among the gurus with 0.9% of outstanding shares, which is 1.1% of his total assets managed. In total, 11 gurus hold positions in the company.
The DCF Calculator gives the stock a fair value of $-16.05; it was trading at $30.35 on Monday.
Energy stocks compose a majority of Pickens’ portfolio with an 83.7% weight. Pickens also has some holdings in autos, airlines, consumer packaged goods, industrial distribution and products, chemicals and transportation. To see all of his holdings for the quarter, view his portfolio.
Disclosure: I do not own stock in any companies mentioned in the article.
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