Latest Pickens’ Energy Picks
T. Boone Pickens latest energy stock picks have been made public. Want to stay on top of your investment game? These picks may help you do that. Some of these picks have remained the same, and other have changed. Either way, they could be great moves for your portfolio. Investment Underground provides details about Pickens’ latest picks.
Apache Corp. (APA): The biggest new buy for BP Capital in Q1 of 2011, Apache suddenly accounts for 5.6% of Pickens’ entire portfolio. Apache is one of the largest independent oil and gas exploration and production companies in the world, with a diverse set of assets both on- and offshore in numerous countries around the world. The company has a market cap of $45B and offers a 0.50% dividend. From a fundamental standpoint, Apache looks like an outstanding stock: It is trading at a P/E of 12.7, with an operating margin over 43% and nearly $10B in EBITDA. All of these numbers are very strong compared to the competition. The company does have a decent amount of debt, with a current ratio right at 1, but otherwise appears strong.
Canadian Natural Resources (CNQ): Another independent oil and gas company, another large new buy for Pickens in Q1 of 2011. This time, it’s Canadian Natural Resources, whose market cap of $44.14B makes it similar to Apache. It also offers a 0.9% dividend. Pickens bought almost 300,000 shares in Canadian Natural Resources, bringing the holding up to over 4% of his portfolio. As you would expect, this Calgary-based company has lots of assets in Canada, but also in the North Sea and off the coast of West Africa. Unfortunately for Canadian Natural Resources, its Q1 profits fell 94% in 2011, mainly due to a fire at the Horizon oil sands and a higher tax rate in the U.K. Forest fires in the area have also pushed back repairs at the Horizon site, meaning that a restart will be pushed back to August. Canadian Natural Resources is only down a little for the 2011, but is down almost 20% since April.
Noble Corporation (NE): Noble Corp., not to be confused with Noble Energy (NBL), is Pickens’ largest holding, at over 8.83% of the portfolio after he increased his shares by 106% in Q1. Noble Corp. is one of the largest offshore drillers in the world, smaller than only Transocean (RIG) and the new combination of Ensco (ESV) and Pride International.
Weatherford International (WFT): Another one of Pickens’ largest holdings at 6.14% of his portfolio, Weatherford is an oil services company providing equipment and services to the oil and gas industry. T. Boone increased his shares by 11% in Q1 at an average price of $22.66. That’s well above the current price level. Weatherford’s competitors include other industry leaders such as Schlumberger (SLB), Baker Hughes (BHI), and Halliburton (HAL), although Weatherford’s market cap of $13B makes it smaller than those firms. Weatherford has been pummeled lately, falling over 30% since late February, in contrast to its main competitors, who have remained mostly even. While earnings have been weak ($0.03 TTM EPS), they are an improvement from the negative EPS of 2010. The balance sheet is not as strong as its peers either, although it still doesn’t demonstrate dire problems.
Weatherford is one of our favorite picks for 2011 as well. We are happy to see that T.Boone Pickens agrees with us. Noble has also been in the spot light lately, and has been said to be a solid pick by analysts as well. Research these stocks further, and prepare to invest.
Quotes taken from report by Investment Underground, Read the entire article here.
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