T. Boone Pickens is the founder and chairman of the hedge fund BP Capital Management. Pickens has worked nearly 40 years in Mesa Petroleum, which he founded in 1956. Pickens believes that Brent crude oil will be at $115 by the end of the year, and natural gas should reach $4 by the end of the year.
Below we compiled a list of T. Boone Pickens' stock picks with strong fundamentals from BP Capital's most recent 13F filing. All stocks in this list have P/E ratio of below 16, Net Profit Margin of higher than 10% and Total Debt/Equity ratio of lower than 0.4. We believe these stocks present long term growth opportunities for their investors. We obtained 10- year income statement summaries from MSN Money, hedge fund holdings from Insider Monkey; and all other market data from Finviz. (See the entire list of Pickens' holdings here).
Stock | Market Cap | Dividend Yield | P/E | Beta | Profit Margin | % Port |
Devon Energy (DVN) | 25.3 | 1.3% | 10.5 | 1.14 | 22.0% | 5.5% |
National Oilwell (NOV) | 35.0 | 0.6% | 15.1 | 1.7 | 13.5% | 5.0% |
Canadian Natural Resources (CNQ) | 34.4 | 1.4% | 11.9 | 1.62 | 19.2% | 3.7% |
Whiting Petroleum (WLL) | 5.7 | 0.0% | 11.0 | 2 | 25.3% | 3.2% |
Apache (APA) | 34.7 | 0.8% | 10.6 | 1.31 | 19.5% | 2.8% |
Occidental Petroleum (OXY) | 69.3 | 2.5% | 11.0 | 1.16 | 24.4% | 2.8% |
Devon Energy recently traded at $62 and has a 1.3% dividend yield. DVN gained 1.8% during the past 12 months. The stock has a market cap of $25.3 billion, P/E ratio of 10.5 and Total Debt/Equity ratio of 0.48. DVN also had an EPS growth rate of -2.8% during the last five years.
National Oilwell Varco recently traded at $80.7 and has a 0.6% dividend yield. NOV gained 28.7% during the past 12 months. The stock has a market cap of $35 billion, P/E ratio of 15.1 and Total Debt/Equity ratio of 0.08. NOV also had an EPS growth rate of 19.4% during the last five years.
Canadian Natural Resources recently traded at $31.25 and has a 1.4% dividend yield. CNQ lost 0.4% during the past 12 months. The stock has a market cap of $34.4 billion, P/E ratio of 11.9 and Total Debt/Equity ratio of 0.36. CNQ also had an EPS growth rate of 0.2% during the last five years.
Whiting Petroleum recently traded at $47.27 and has a 0% dividend yield. WLL gained 9.7% during the past 12 months. The stock has a market cap of $5.7 billion, P/E ratio of 11 and Total Debt/Equity ratio of 0.43. WLL also had an EPS growth rate of 14.3% during the last five years.
Apache recently traded at $86.87 and has a 0.8% dividend yield. APA lost 0.9% during the past 12 months. The stock has a market cap of $34.7 billion, P/E ratio of 10.6 and Total Debt/Equity ratio of 0.33. APA also had an EPS growth rate of 8.4% during the last five years.
Occidental Petroleum recently traded at $84.35 and has a 2.5% dividend yield. OXY gained 4.3% during the past 12 months. The stock has a market cap of $69.3 billion, P/E ratio of 11 and Total Debt/Equity ratio of 0.19. OXY also had an EPS growth rate of 10.8% during the last five years.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
