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T. Boone Pickens is one of my favorite investors to follow. The self-made energy billionaire is a fountain of home spun common sense and good investment ideas in the energy space. He also has a plan for energy independence that would do more to advance the country's efforts to free itself from OPEC that anything that any politician has offered in two generations. MarketWatch had an article recently on some of the large positions the renowned oilman had in his portfolio that had low PEG ratios. Here are two cheap drillers in his portfolio that I also like:

Weatherford International (NYSE:WFT) provides equipment to the oil & gas industry worldwide. It offers artificial lift systems, which include progressing cavity pumps, reciprocating rod lift systems, gas lift systems, hydraulic lift systems, plunger lift systems, hybrid lift systems, and wellhead systems.

4 reasons WFT has substantial upside ahead from $11.50 a share:

  1. Pickens initiated a position of 420,000 shares in the first quarter. Myriad insiders have also purchased approximately $2mm in new shares over the last six months.
  2. The mean price target by the 28 analysts covering the stock is approximately $14.50 a share, around 25% above the current stock price. Raymond James also recently stated the shares were undervalued.
  3. Analysts expect 8% to 9% revenue growth for both FY2013 and FY2014, and the stock has a minuscule five year projected PEG (.44)
  4. The stock sells for less than 9x 2014's projected earnings. WFT is also selling at the bottom of its five year valuation range based on P/B and P/S.

National Oilwell Varco (NYSE:NOV) provides equipment and components for oil and gas drilling and production; oilfield services; and supply chain integration services to the upstream oil and gas industry worldwide.

4 reasons NOV is going higher from $68 a share:

  1. Pickens has over 90,000 shares of this cheap driller. Warren Buffett also has 5mm shares within Berkshire Hathaway.
  2. The 26 analysts that cover the stock have a median price target of $85 a share on the stock -- more than 25% above its current price level.
  3. NOV is selling at around 10x 2014's projected earnings, and the stock is selling in the bottom third of five year valuation range based on P/S, P/CF and P/B.
  4. Analysts expect mid-double digit revenue growth, and the stock trades at a five year projected PEG of less than 1 (.80).
Source: 2 Cheap Drillers In T. Boone Pickens' Portfolio