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T. Boone Pickens isn't your average hedge fund manager. He's an oilman turned fund manager. Instead of taking risks in the oil fields, he now takes risks in financial markets. His investment strategy is quite straightforward. He forecasts the direction of energy markets and then makes outsized bets in mostly futures and derivatives markets. Depending on his call, he might go long or short. Since he makes directional bets, sometimes his losses are staggering. So if you think that energy stocks are going to go up then you should consider Pickens stock picks.

Below we compiled a list of stocks that Pickens has been holding since the beginning of this year. These are Pickens’ longer-term holdings in which he has high conviction.

Company

Ticker

Value (x1000)

YTD Return

CHESAPEAKE ENERGY

CHK

30708

11.6%

NOBLE CORP BAAR

NE

26546

-5.2%

B P PLC

BP

25824

-16.0%

PLAINS EXPLORATION

PXP

22310

-21.4%

MCMORAN EXPLORATION

MMR

20898

-35.8%

SANDRIDGE ENERGY

SD

20880

-4.8%

WEATHERFORD INTL

WFT

20704

-34.9%

EOG RESOURCES INC

EOG

20179

-9.2%

NATIONAL OILWELL VARCO

NOV

16271

-12.8%

SUNCOR ENERGY

SU

13471

-27.4%

HALLIBURTON COMPANY

HAL

13256

-13.4%

OCCIDENTAL PETROLEUM

OXY

12394

-21.0%

DAWSON GEOPHYSICAL

DWSN

8642

-16.3%

GASTAR EXPLORATION

GST

4124

-11.8%

Chesapeake Energy is the second largest producer of natural gas in the US. It returned 11.57% since the beginning of this year. It has a market cap of $16.68 billion and a P/E ratio of 19.59. Pickens invested $30.7 million in CHK shares.

Noble Corporation is a leading offshore drilling contractor for the oil and gas industry. It lost 5.17% since the beginning of this year. It has a market cap of $8.43 billion and a P/E ratio of 29. Pickens invested $26.5 million in NE shares.

BP is a global oil and gas company. It is the third-largest energy company and fourth-largest company in the world measured by revenues. It lost 15.95% since the beginning of this year. It has a market cap of $116.48 billion and a P/E ratio of 5.87. Pickens invested $25.8 million in BP shares. David Einhorn had more than $100 million in BP at the end of June but he was reducing his position during the second quarter.

Plains Exploration & Production is a U.S. petroleum company. It lost 21.35% since the beginning of this year. It has a market cap of $15.4 billion and a P/E ratio of 15.28. Pickens invested $22.3 million in PXP shares.

McMoRan Exploration Co. is an independent public company engaged in the exploration, development and production of oil and natural gas in the shallow waters of the Gulf of Mexico Shelf and onshore in the Gulf Coast area. It lost 35.76% since the beginning of this year. It has a market cap of $3.63 billion and a P/E ratio of 18.7. Pickens invested $20.9 million in MMR shares. Billionaire investor Steve Cohen had $79 million in MMR at the end of June (see Steve Cohens top stock picks).

SandRidge Energy, Inc. is an oil exploration and production company. It lost 4.84% since the beginning of this year. It has a market cap of $2.69 billion. Pickens invested $20.9 million in SD shares.

Weatherford International Ltd. is one of the largest global providers of products and services that span the drilling, evaluation, completion, production and intervention cycles of oil and natural gas wells. It lost 34.86% since the beginning of this year. It has a market cap of $11.06 billion and a P/E ratio of 63.98. Pickens invested $20.7 million in WFT shares.

EOG Resources, Inc. is one of the largest independent (non- integrated) oil and natural gas companies in the United States. It lost 9.24% since the beginning of this year. It has a market cap of $15.4 billion and a P/E ratio of 15.28. Pickens invested $20.2 million in EOG shares.

National Oilwell Varco provides major mechanical components for land and offshore drilling rigs, complete land drilling and well servicing rigs, tubular inspection and internal tubular coatings, drill string equipment, extensive lifting and handling equipment, and a broad offering of downhole drilling motors, bits and tools. It lost 12.8% since the beginning of this year. It has a market cap of $22.41 billion and a P/E ratio of 52.5. Pickens invested $16.3 million in NOV shares.

Suncor Energy Inc. is a Canadian integrated energy company. It specializes in production of synthetic crude from oil sands. It lost 27.38% since the beginning of this year. It has a market cap of $43.99 billion and a P/E ratio of 11.24. Pickens invested $13.5 million in SU shares. Hedge fund legend Julian Robertson is among the investors who are bullish about SU (see billionaire Julian Robertsons stock picks).



Disclosure: I am long CHK.

Source: T. Boone Pickens' Long-Term Stock Picks