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T. Boone Pickens is the founder and chairman of the hedge fund BP Capital Management. T. Boone Pickens invest 90 percent in oil and gas equities and 10 percent in commodities. Pickens has an estimated current net worth of about $1.45 billion. Pickens has worked nearly 40 years in Mesa Petroleum which he founded in 1956.

Pickens initiated new positions in Schlumberger Ltd and Hess Corpduring the second quarter of 2011. Below we compiled a list of T. Boone Pickens’ picks with strong fundamentals at BP Capital’s most recent 13F filing. All stocks in this list have P/E ratio of below 15 and Total Debt/Equity ratio of lower than 0.4. We obtained market data from Finviz and hedge fund holdings from Insider Monkey.

1. Apache Corp (NYSE:APA): Shares of APA recently traded at $84.84 with a trailing price to earnings of 8.55 and a forward price to earnings of 6.72. APA has a 0.71% dividend yield and lost 16.02% during the past 12 months. The stock has a market cap of $34.7 billion and total debt/equity ratio of 0.29. APA has an estimated growth rate of 6.05% for this year and 10.55% for next five years. Pickens had $18 million invested in APA shares at the end of June. Jean Eveillard is the largest holder of APA shares. Eveillard reduced his holdings of APA by 17% during the second quarter and currently he holds a $221 million position in this company.

2. National Oilwell Varco (NYSE:NOV): Shares of NOV recently traded at $58.81 with a trailing price to earnings of 14.34 and a forward price to earnings of 10.34. NOV has a 0.75% dividend yield and gained 26.99% during the past 12 months. The stock has a market cap of $24.9 billion and total debt/equity ratio of 0.03. NOV has an estimated growth rate of 27.58% for this year and 12.53% for next five years. Pickens had $16 million invested in NOV shares at the end of June. Ken Fisher is the largest holder of NOV shares. Fisher increased his holdings of NOV by 2% during the second quarter and currently he holds a $549 million position in this company.

3. Suncor Energy Inc New (NYSE:SU): Shares of SU recently traded at $27.05 with a trailing price to earnings of 12.7 and a forward price to earnings of 7.66. SU has a 1.66% dividend yield and lost 20.95% during the past 12 months. The stock has a market cap of $42.6 billion and total debt/equity ratio of 0.29. SU has an estimated growth rate of 15.4% for this year and 10% for next five years. Pickens had $13 million invested in SU shares at the end of June. Glenn J. Krevlin initiated a $19.5 million position in SU during the most recent quarter.

4. Halliburton Company (NYSE:HAL): Shares of HAL recently traded at $33.32 with a trailing price to earnings of 12.96 and a forward price to earnings of 7.37. HAL has a 1.08% dividend yield and lost 3.28% during the past 12 months. The stock has a market cap of $30.6 billion and total debt/equity ratio of 0.33. HAL has an estimated growth rate of 34.12% for this year and 26.74% for next five years. Pickens had $13 million invested in HAL shares at the end of June. Ken Fisher also initiated a $285 million brand new position in HAL during the most recent quarter.

5. Occidental Petroleum (NYSE:OXY): Shares of OXY recently traded at $77.25 with a trailing price to earnings of 11.13 and a forward price to earnings of 8.64. OXY has a 2.38% dividend yield and lost 5.38% during the past 12 months. The stock has a market cap of $62.8 billion and total debt/equity ratio of 0.12. OXY has an estimated growth rate of 9.42% for this year and 14% for next five years. Pickens had $12 million invested in OXY shares at the end of June. Ralph V. Whitworth had the largest position with $689 million invested at the end of June. Ken fisher sold nearly $350 million worth of OXY shares during the second quarter. Fisher still holds a more than $500 million position in OXY.

6. Murphy Oil (NYSE:MUR): Shares of MUR recently traded at $47.14 with a trailing price to earnings of 9.56 and a forward price to earnings of 7.22. MUR has a 2.33% dividend yield and lost 25.51% during the past 12 months. The stock has a market cap of $9.1 billion and total debt/equity ratio of 0.17. MUR has an estimated growth rate of 15.99% for this year and 13.5% for next five years. Pickens had $12 million invested in MUR shares at the end of June. Steven Cohen is the largest holder of MUR shares. Cohen reduced his holdings of MUR by 81% during the second quarter and currently he holds a $28.7 million position in this company.

7. Schlumberger Ltd (NYSE:SLB): Shares of SLB recently traded at $62.64 with a trailing price to earnings of 15.43 and a forward price to earnings of 11.58. SLB has a 1.6% dividend yield and lost 0.29% during the past 12 months. The stock has a market cap of $84.5 billion and total debt/equity ratio of 0.3. SLB has an estimated growth rate of 42.37% for this year and 20.09% for next five years. Pickens had $12 million invested in SLB shares at the end of June. Ken Fisher held the largest position in this company with his $703 million investment at the end of June.

8. Hess Corp (NYSE:HES): Shares of HES recently traded at $53.2 with a trailing price to earnings of 6.47 and a forward price to earnings of 7.15. HES has a 0.75% dividend yield and lost 14.44% during the past 12 months. The stock has a market cap of $18.1 billion and total debt/equity ratio of 0.3. HES has an estimated growth rate of 6.9% for this year and 9.72% for next five years. Pickens initiated a $12 million position in HES during the second quarter. Steven Richman held the largest position in this company with his $99 million investment at the end of June.

Source: T. Boone Pickens' 8 Favorite Energy Stocks With Strong Fundamentals