T. Boone Pickens is the founder and chairman of the hedge fund BP Capital Management. T. Boone Pickens invests 90 percent in oil and gas equities and 10 percent in commodities. Pickens has worked nearly 40 years in Mesa Petroleum, which he founded in 1956.
Pickens initiated new positions in Transocean and Golar LNG during the last 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 MSN Money; hedge fund holdings from Insider Monkey.
1. Exxon Mobil (XOM): Exxon Mobil is the one of the leading integrated energy companies operating worldwide. Shares of XOM recently traded at $84.82 with a trailing price to earnings of 10.07 and a forward price to earnings of 9.51. XOM has a 2.22% dividend yield and gained 1.96% during the past 12 months. The stock has a market cap of $399.8 billion and total debt/equity ratio of 0.11. Pickens had $8 million invested in XOM shares.
2. Occidental Petroleum (OXY): Occidental Petroleum Corporation provides oil and gas exploration and production primarily in the United States. Shares of OXY recently traded at $93.29 with a trailing price to earnings of 11.43 and a forward price to earnings of 9.61. OXY has a 2.32% dividend yield and lost 5.79% during the past 12 months. The stock has a market cap of $75.7 billion and total debt/equity ratio of 0.16. Pickens had $5 million invested in OXY shares.
3. Suncor Energy (SU): Suncor Energy Inc. is a Canadian integrated energy company based in Calgary, Alberta. Shares of SU recently traded at $30.63 with a trailing price to earnings of 11.26 and a forward price to earnings of 7.83. SU has a 1.45% dividend yield and lost 30.31% during the past 12 months. The stock has a market cap of $47.8 billion and total debt/equity ratio of 0.28. T. Boone Pickens and Andrew Hall are both bullish about SU. As of December 31, 2011, Pickens' BP Capital had $6.2 million invested in SU and Hall's Astenbeck had $8.0 million invested in this position.
4. Canadian Natural Resources (CNQ): Canadian Natural Resources provides crude oil, natural gas liquids and natural gas. Shares of CNQ recently traded at $32.03 with a trailing price to earnings of 13.35 and a forward price to earnings of 8.38. CNQ has a 1.32% dividend yield and lost 34.23% during the past 12 months. The stock has a market cap of $35.2 billion and total debt/equity ratio of 0.37. Pickens had $7 million invested in CNQ shares.
5. Halliburton Company (HAL): Halliburton Company provides various products and services to the energy industry worldwide. Shares of HAL recently traded at $32.77 with a trailing price to earnings of 10.05 and a forward price to earnings of 7.36. HAL has a 1.1% dividend yield and lost 31.69% during the past 12 months. The stock has a market cap of $30.2 billion and total debt/equity ratio of 0.37. Pickens had $4 million invested in HAL shares.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
