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Sydnee Gatewood
Sydnee Gatewood
Articles (762) 

T. Boone Pickens Gains Multiple Energy Holdings in 1st Quarter

In addition to oil, the guru invested in chemicals, construction materials

Oil tycoon T Boone Pickens (Trades, Portfolio)’ BP Capital Fund gained 10 new holdings in the first quarter. Among his purchases were Huntsman Corp. (NYSE:HUN), Antero Midstream Partners LP (NYSE:AM), Summit Materials Inc. (NYSE:SUM), Smart Sand Inc. (NASDAQ:SND), Noble Midstream Partners LP (NYSE:NBLX) and ProPetro Holding Corp. (NYSE:PUMP).

Pickens invests largely in the oil industry as 84.9% of his portfolio holdings are energy-related stocks. The remainder of the portfolio is composed of basic materials, ETFs, consumer cyclical and industrial stocks. Pickens’ current portfolio consists of 51 stocks valued at $218 million.

The tycoon purchased 222,614 shares of Huntsman for an average price of $21.51 per share, giving it 2.5% portfolio space.

The chemical products manufacturer has a market cap of $6.4 billion; its shares were trading around $26.68 on Tuesday with a price-earnings (P/E) ratio of 18.6, a price-book (P/B) ratio of 4.4 and a price-sales (P/S) ratio of 0.6.

The Peter Lynch chart below shows the stock is trading slightly above its fair value.

1494947827950.png

GuruFocus ranked Huntsman’s financial strength 4 of 10 and its profitability and growth 4 of 10. The company pays a quarterly dividend of 12 cents. The trailing dividend yield is 1.8% and the forward dividend yield is 1.9%. Over the past five years, the company has grown its dividend by 5.2% per year.

David Tepper (Trades, Portfolio) is the company’s largest guru shareholder with 2.3% of outstanding shares. In all, 12 gurus hold the stock.

Pickens purchased 100,000 shares of Antero Midstream for an average price of $34.1 per share, expanding the portfolio 1.5%.

The midstream services company has a market cap of $6.5 billion; its shares were trading around $34.89 on Tuesday with a P/E ratio of 25.6, a P/B ratio of 4.4 and a P/S ratio of 9.9.

According to the Peter Lynch chart below, the stock is trading above its fair value.

1494948492239.png

GuruFocus ranked Antero’s financial strength 5 of 10 and its profitability and growth 5 of 10. It pays a quarterly dividend of 30 cents. The trailing dividend yield is 3.14% and the forward dividend yield is 3.5%.

With his purchase, Pickens became the company’s largest guru shareholder. Jim Simons (Trades, Portfolio) also owns the stock.

Pickens established a 128,715-share position in Summit Materials for an average price of $24.2 per share, giving it 1.5% portfolio space.

The construction materials company has a market cap of $2.9 billion; its shares were trading around $27.12 on Tuesday with a P/E ratio of 108.5, a P/B ratio of 2.8 and a P/S ratio of 1.2.

Based on the Peter Lynch chart below, the stock appears to be trading above its fair value.

1494966398548.png

GuruFocus ranked Summit’s financial strength 5 of 10 and its profitability and growth 5 of 10. It does not currently pay a dividend.

Tepper is the company’s largest shareholder with 2.4% of its outstanding shares. In total, nine gurus hold the stock.

The investor bought 179,018 shares of Smart Sand for an average price of $17.10 per share, expanding the portfolio 1.34%.

The company produces sand used in hydraulic fracturing operations. With a market cap of $536.9 million, its shares were trading around $13.31 on Tuesday with a P/E ratio of 29.6, a P/B ratio of 3.2 and a P/S ratio of 4.9.

The Peter Lynch chart below indicates the stock is trading above its fair value.

1494967245853.png

GuruFocus ranked Smart Sand’s financial strength 8 of 10 and its profitability and growth 4 of 10. It does not currently pay a dividend.

With his purchase, Pickens became the company’s largest guru shareholder. Ron Baron (Trades, Portfolio), Simons and Joel Greenblatt (Trades, Portfolio) also own the stock.

Pickens bought 41,320 shares of Noble Midstream Partners for an average price of $45.94 per share. The trade had an impact of 0.99% on the portfolio.

The midstream services provider has a market cap of $1.5 billion; its shares were trading around $46.79 on Tuesday with a P/E ratio of 25.4, a P/B ratio of 5.3 and a P/S ratio of 8.3.

The Peter Lynch chart below shows the stock is trading above its fair value.

1494967687340.png

GuruFocus ranked Noble Midstream’s financial strength 8 of 10 and its profitability and growth 2 of 10. It pays a quarterly dividend of 41 cents. The trailing dividend yield is 1.8% and the forward dividend yield is 3.5%.

Baron is the company’s largest guru shareholder with 0.2% of its outstanding shares.

Pickens purchased 60,370 shares of ProPetro for an average price of $13.50 per share, giving it 0.4% portfolio space.

The oilfield services company has a market cap of $1.05 billion; its shares were trading around $12.64 on Tuesday with a forward P/E ratio of 59.2 and a P/B ratio of 1.9.

GuruFocus ranked the company’s financial strength 4 of 10 and its profitability and growth 2 of 10. It does not currently pay a dividend.

Louis Moore Bacon (Trades, Portfolio) is ProPetro’s largest guru shareholder with 3.01% of outstanding shares. Steven Cohen (Trades, Portfolio) and Paul Tudor Jones (Trades, Portfolio) also own the stock.

Other positions Pickens bought during the quarter are Parsley Energy Inc. (NYSE:PE), EQT Midstream Partners LP (NYSE:EQM), Magellan Midstream Partners LP (NYSE:MMP) and Cheniere Energy Partners LP (CQP).

Disclosure: I do not own any stocks mentioned in the article.

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About the author:

Sydnee Gatewood
I am an editorial assistant at GuruFocus. I have a BA in journalism and a MA in mass communications from Texas Tech University. I have lived in Texas most of my life, but also have roots in New Mexico and Colorado. Follow me on Twitter! @gurusydneerg

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