(GuruFocus, October 7, 2009) Investment Guru T. Boone Pickens built his fortune as a oilman. Forbes recently rank him as the No. 341 richest American with $1.150 billion. Last year, he was No. 131 on the Forbes List of Richest Americans with a net worth of $3.1 billion. It is amazing to see how much one year can change one’s fortune.
The setback does not deter his passion for his mission, for he is on a crusade to keep US away from the foreign oil. His plan, dubbed as the “Pickens Plan” has the following four pillars:
If you desire to get a crash course on the The Pickens Plan and its current status, here is a clip :
From better insulated building, wind power, natural gas, and smart grid, the 80+ year old Pickens certainly has plan. Right now, the energy seems to be centered on replacing the nation’s 18-wheeler trucks with Natural Gas powered trucks.
If you do not share his particular plan, you have to be influenced by his passion for doing something meaningful at this late in life.
As an investor, T Boone Pickens also owns a small portfolio of stocks besides commodities and other investments that he does not have to report. On June 30, 2009, the stock portfolio has only $86 million asset allocated among 9 US traded stocks. As you would image, they are mostly Oil & Gas companies.
Talk about circle of competence!
Here is brief review of the top holdings:
No. 1: Transocean Inc. (RIG, Financial), Weightings: 28.23% - 325,000 Shares
Transocean LTD. formerly Transocean Inc. is an international provider of offshore contract drilling services for oil and gas wells. Transocean Inc. has a market cap of $27.49 billion; its shares were traded at around $85.61 with a P/E ratio of 6.3 and P/S ratio of 2.2. Transocean Inc. had an annual average earning growth of 6% over the past 10 years.
Pickens had 325,000 shares as of June 30, 2009, down from 450,000 shares from a quarter before.
No. 2: Devon Energy Corp. (DVN, Financial), Weightings: 15.93% - 250,000 Shares
Devon Energy Corporation is an independent energy company engaged primarily in oil and gas exploration development and production and in the acquisition of producing properties. Devon Energy Corp. has a market cap of $29.49 billion; its shares were traded at around $66.44 with a P/E ratio of 13 and P/S ratio of 1.9. The dividend yield of Devon Energy Corp. stocks is 1%. Devon Energy Corp. had an annual average earning growth of 18.1% over the past 10 years. GuruFocus rated Devon Energy Corp. the business predictability rank of 4.5-star.
Pickens held 250,000 shares of DVN, unchanged from a quarter earlier.
No. 3: Occidental Petroleum Corp. (OXY, Financial), Weightings: 15.39% - 200,000 Shares
Occidental Petroleum Corp. explores for develops produces and markets crude oil and natural gas and manufactures and markets a variety of basic chemicals, specialty chemicals, and vinyls. Occidental Petroleum Corp. has a market cap of $62.91 billion; its shares were traded at around $77.59 with a P/E ratio of 14.6 and P/S ratio of 2.6. The dividend yield of Occidental Petroleum Corp. stocks is 1.8%. Occidental Petroleum Corp. had an annual average earning growth of 17% over the past 10 years. GuruFocus rated Occidental Petroleum Corp. the business predictability rank of 2.5-star.
Pickens held 200,000 shares of OXY in 2Q09, unchanged from a quarter earlier.
No. 4: Suncor Energy Inc. (SU, Financial), Weightings: 10.64% - 300,000 Shares
SUNCOR ENERGY is a world leader in mining and extracting crude oil from the vast oil sands deposits of northern Alberta. Suncor Energy Inc. has a market cap of $32.23 billion; its shares were traded at around $34.39 with a P/E ratio of 19.8 and P/S ratio of 1.1. The dividend yield of Suncor Energy Inc. stocks is 1.2%. Suncor Energy Inc. had an annual average earning growth of 21.8% over the past 5 years.
Pickens held 300,000 shares of SU, unchanged from a quarter earlier.
No. 5: Cabot Oil & Gas Corp. (COG, Financial), Weightings: 9.85% - 275,000 Shares
Cabot Oil & Gas Corp. is an independent oil and gas company engaged in the exploration, development, acquisition and exploitation of oil and gas properties located in the United States. Cabot Oil & Gas Corp. has a market cap of $3.74 billion; its shares were traded at around $36.12 with a P/E ratio of 21 and P/S ratio of 3.9. The dividend yield of Cabot Oil & Gas Corp. stocks is 0.3%. Cabot Oil & Gas Corp. had an annual average earning growth of 16.2% over the past 10 years. GuruFocus rated Cabot Oil & Gas Corp. the business predictability rank of 4-star.
Pickens held 275,000 shares of COG as of 2Q09, increasing from 200,000 as of 1Q09.
No. 6: Questar Corp. (STR, Financial), Weightings: 8.13% - 224,000 Shares
Questar Corporation is a natural gas-focused energy company with five major lines of business - gas and oil exploration and production, midstream field services, energy marketing, interstate gas transportation, and retail gas distribution. Questar Corp. has a market cap of $6.55 billion; its shares were traded at around $37.58 with a P/E ratio of 11.2 and P/S ratio of 1.9. The dividend yield of Questar Corp. stocks is 1.4%. Questar Corp. had an annual average earning growth of 15% over the past 10 years. GuruFocus rated Questar Corp. the business predictability rank of 3.5-star.
Pickens owned 224,000 shares of STR as of 2Q09, an increase from 160,000 shares as 1Q09.
Comments
Pickens stayed within his circle of competence in his investing; he has a very concentrated Oil & Gas portfolio.
GuruFocus provides real time information and insights of Investment Gurus such as Warren Buffett and T Boone Pickens for Premium Members. If you are not a premium member, click here to sign up or upgrade. 7-Day Free Trial is available.
The setback does not deter his passion for his mission, for he is on a crusade to keep US away from the foreign oil. His plan, dubbed as the “Pickens Plan” has the following four pillars:
Create millions of new jobs by building out the capacity to generate up to 22 percent of our electricity from wind. And adding to that with additional solar generation capacity;Building a 21st century backbone electrical transmission grid; Providing incentives for homeowners and the owners of commercial buildings to upgrade their insulation and other energy saving options; andUsing America's natural gas to replace imported oil as a transportation fuel in addition to its other uses in power generation, chemicals, etc..
If you desire to get a crash course on the The Pickens Plan and its current status, here is a clip :
From better insulated building, wind power, natural gas, and smart grid, the 80+ year old Pickens certainly has plan. Right now, the energy seems to be centered on replacing the nation’s 18-wheeler trucks with Natural Gas powered trucks.
If you do not share his particular plan, you have to be influenced by his passion for doing something meaningful at this late in life.
As an investor, T Boone Pickens also owns a small portfolio of stocks besides commodities and other investments that he does not have to report. On June 30, 2009, the stock portfolio has only $86 million asset allocated among 9 US traded stocks. As you would image, they are mostly Oil & Gas companies.
Talk about circle of competence!
Here is brief review of the top holdings:
No. 1: Transocean Inc. (RIG, Financial), Weightings: 28.23% - 325,000 Shares
Transocean LTD. formerly Transocean Inc. is an international provider of offshore contract drilling services for oil and gas wells. Transocean Inc. has a market cap of $27.49 billion; its shares were traded at around $85.61 with a P/E ratio of 6.3 and P/S ratio of 2.2. Transocean Inc. had an annual average earning growth of 6% over the past 10 years.
Pickens had 325,000 shares as of June 30, 2009, down from 450,000 shares from a quarter before.
No. 2: Devon Energy Corp. (DVN, Financial), Weightings: 15.93% - 250,000 Shares
Devon Energy Corporation is an independent energy company engaged primarily in oil and gas exploration development and production and in the acquisition of producing properties. Devon Energy Corp. has a market cap of $29.49 billion; its shares were traded at around $66.44 with a P/E ratio of 13 and P/S ratio of 1.9. The dividend yield of Devon Energy Corp. stocks is 1%. Devon Energy Corp. had an annual average earning growth of 18.1% over the past 10 years. GuruFocus rated Devon Energy Corp. the business predictability rank of 4.5-star.
Pickens held 250,000 shares of DVN, unchanged from a quarter earlier.
No. 3: Occidental Petroleum Corp. (OXY, Financial), Weightings: 15.39% - 200,000 Shares
Occidental Petroleum Corp. explores for develops produces and markets crude oil and natural gas and manufactures and markets a variety of basic chemicals, specialty chemicals, and vinyls. Occidental Petroleum Corp. has a market cap of $62.91 billion; its shares were traded at around $77.59 with a P/E ratio of 14.6 and P/S ratio of 2.6. The dividend yield of Occidental Petroleum Corp. stocks is 1.8%. Occidental Petroleum Corp. had an annual average earning growth of 17% over the past 10 years. GuruFocus rated Occidental Petroleum Corp. the business predictability rank of 2.5-star.
Pickens held 200,000 shares of OXY in 2Q09, unchanged from a quarter earlier.
No. 4: Suncor Energy Inc. (SU, Financial), Weightings: 10.64% - 300,000 Shares
SUNCOR ENERGY is a world leader in mining and extracting crude oil from the vast oil sands deposits of northern Alberta. Suncor Energy Inc. has a market cap of $32.23 billion; its shares were traded at around $34.39 with a P/E ratio of 19.8 and P/S ratio of 1.1. The dividend yield of Suncor Energy Inc. stocks is 1.2%. Suncor Energy Inc. had an annual average earning growth of 21.8% over the past 5 years.
Pickens held 300,000 shares of SU, unchanged from a quarter earlier.
No. 5: Cabot Oil & Gas Corp. (COG, Financial), Weightings: 9.85% - 275,000 Shares
Cabot Oil & Gas Corp. is an independent oil and gas company engaged in the exploration, development, acquisition and exploitation of oil and gas properties located in the United States. Cabot Oil & Gas Corp. has a market cap of $3.74 billion; its shares were traded at around $36.12 with a P/E ratio of 21 and P/S ratio of 3.9. The dividend yield of Cabot Oil & Gas Corp. stocks is 0.3%. Cabot Oil & Gas Corp. had an annual average earning growth of 16.2% over the past 10 years. GuruFocus rated Cabot Oil & Gas Corp. the business predictability rank of 4-star.
Pickens held 275,000 shares of COG as of 2Q09, increasing from 200,000 as of 1Q09.
No. 6: Questar Corp. (STR, Financial), Weightings: 8.13% - 224,000 Shares
Questar Corporation is a natural gas-focused energy company with five major lines of business - gas and oil exploration and production, midstream field services, energy marketing, interstate gas transportation, and retail gas distribution. Questar Corp. has a market cap of $6.55 billion; its shares were traded at around $37.58 with a P/E ratio of 11.2 and P/S ratio of 1.9. The dividend yield of Questar Corp. stocks is 1.4%. Questar Corp. had an annual average earning growth of 15% over the past 10 years. GuruFocus rated Questar Corp. the business predictability rank of 3.5-star.
Pickens owned 224,000 shares of STR as of 2Q09, an increase from 160,000 shares as 1Q09.
Comments
Pickens stayed within his circle of competence in his investing; he has a very concentrated Oil & Gas portfolio.
GuruFocus provides real time information and insights of Investment Gurus such as Warren Buffett and T Boone Pickens for Premium Members. If you are not a premium member, click here to sign up or upgrade. 7-Day Free Trial is available.
