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T Boone Pickens on Energy – Video Interview – Pickens top stock holdings

January 21, 2010 | About:
T Boone Pickens was on Fox News, talking about energy. Pickens chairs the private equity firm BP Capital Management. BP Capital Mangment, holds stocks such as Transocean LTD (ticker: RIG), Hess Corp (ticker: HES), Devon Energy Corporation (ticker: DVN), Chesapeake Energy Corporation (ticker: CHK), Occidental Petroleum Corporation (ticker: OXY) and SandRidge Energy Inc (ticker: SD).

In the video, Pickens talks about why he wants to reduce dependence on OPEC based oil. He is specific in stating that he is not talking about foreign oil, but OPEC in particular. This is 4.5 million barrels a day out of the 12 million barrels imported. Part of the reason is that many of the OPEC countries are countries that the US state department recommends not traveling to.

In particular, he want's to move the US trucking fleet to natural gas. About 8.5 million of the 250 million autos in the US are 18 wheelers to natural gas. Doing this will reduce our dependence on OPEC by 50%.

He has reduced his exposure to wind power, but he has always been pushing both wind power and natural gas. He has reduced a total plan for 687 wind turbines to about half that number.

Moving America to natural gas does two things. It reduces exposure to OPEC while at the same time, it will help the US with its current unemployment/underemployment situation by creating new jobs in energy.

Important Catalyst:

John Larson from Connecticut is pushing a new bill. It is HR-1835, The Natural Gas Act. Pickens expects this bill to put natural gas into autos. Pickens has worked with Larson on this bill and expects this bill to pass within the next 2 months.

The Video:


It is clear that Pickens is a subject matter expert on energy. He holds many oil and gas companies as investments. His top holdings are as follows.

No. 1: Transocean LTD (ticker: RIG), Weightings: 16.29%

Transocean LTD., formerly Transocean Inc., is an international provider of offshore contract drilling services for oil and gas wells. The company offers deepwater and harsh environment drilling, oil and gas drilling management, and drilling engineering and project management services, as well as explores, develops, and produces oil and gas resources. The company is based in Houston, Texas. Transocean Inc. has a market cap of $28.66 billion; its shares were traded at around $89.24 with a P/E ratio of 6.9 and P/S ratio of 2.3. Transocean Inc. had an annual average earning growth of 6% over the past 10 years.

No. 2: Hess Corp (ticker: HES), Weightings: 11.64%

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 $19.69 billion; its shares were traded at around $60.19 with a P/E ratio of 83.6 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.

No. 3: Devon Energy Corporation (ticker: DVN), Weightings: 10.65%

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 currently owns oil and gas properties concentrated in four operating divisions: the Northern Division; the Southern Division,; Canada; and the International Division. Devon Energy Corp. has a market cap of $31.72 billion; its shares were traded at around $71.43 with a P/E ratio of 23 and P/S ratio of 2.1. The dividend yield of Devon Energy Corp. stocks is 0.9%. Devon Energy Corp. had an annual average earning growth of 18.1% over the past 10 years.

No. 4: Chesapeake Energy Corporation (ticker: CHK), Weightings: 9.65%

Chesapeake Energy Corp. is an independent oil and gas company engaged in the development, exploration, acquisition and production of onshore natural gas and oil reserves. Chesapeake owns interests in producing oil and gas wells concentrated in three primary operating areas: the Mid-Continent region of Oklahoma, western Arkansas, southwestern Kansas and the Texas Panhandle; the Gulf Coast region consisting primarily of the Austin Chalk Trend in Texas and Louisiana and the Tuscaloosa Trend in Louisiana; and the Helmet area of northeastern British Columbia. Chesapeake Energy Corp. has a market cap of $17.61 billion; its shares were traded at around $27.18 with a P/E ratio of 10.8 and P/S ratio of 1.6. The dividend yield of Chesapeake Energy Corp. stocks is 1.1%. Chesapeake Energy Corp. had an annual average earning growth of 19.6% over the past 5 years. GuruFocus rated Chesapeake Energy Corp. the business predictability rank of 3-star.

No. 5: Occidental Petroleum Corporation (ticker: OXY), Weightings: 9.19%

Occidental Petroleum Corp. explores for, develops, produces and markets crude oil and natural gas and manufactures and markets a variety of basic chemicals, including chlorine, caustic soda, and ethylene dichloride, as well as specialty chemicals and vinyls, including polyvinyl chloride resins and vinyl chloride monomer. Occidental conducts its principal operations through its oil and gas and chemical subsidiaries. Occidental Petroleum Corp. has a market cap of $61.69 billion; its shares were traded at around $76.01 with a P/E ratio of 20.8 and P/S ratio of 2.6. The dividend yield of Occidental Petroleum Corp. stocks is 1.7%. 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.

No. 6: SandRidge Energy Inc (ticker: SD), Weightings: 7.25%

SandRidge Energy, Inc. is an oil and natural gas company headquartered in Oklahoma City with its principal focus on exploration and production. SandRidge also owns and operates drilling rigs and a related oil field services business operating under the Lariat Services, Inc. brand name; gas gathering, marketing and processing facilities; and, through its subsidiary, PetroSource Energy Company CO2 treating and transportation facilities and tertiary oil recovery operations. SandRidge focuses its exploration and production activities in West Texas, the Cotton Valley Trend in East Texas and the Gulf Coast. SandRidge also owns oil and gas properties in the Piceance Basin of Colorado, the Gulf of Mexico and the Anadarko and Arkoma Basins. Sandridge Energy Inc has a market cap of $1.98 billion; its shares were traded at around $9.65 with a P/E ratio of 13.9 and P/S ratio of 1.7.


HR-1835 can be found here.

About the author:

Karl is currently a software engineer in Connecticut with a bachelors of science in electrical engineering from Clarkson University. He has been investing since 2001 and interested in value investing since 2005. Karl is continually striving to learn more about investment.

Rating: 4.1/5 (16 votes)


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