Billionaire T. Boone Pickens Likes Apache Corporation (APA), Doesn’t Like Oilfield Services

Goodrich. In addition to Apache Corporation (NYSE:APA), the billionaire was buying Goodrich Petroleum Corporation (NYSE:GDP) between January and March of this year. Goodrich Petroleum Corporation (NYSE:GDP)’s market cap is only about $480 million, but on average 1.2 million shares of the stock are traded per day. Like Apache, it is an exploration and production company; its acreage is primarily in the Texas-Louisiana region in onshore shale plays. We’d note that Goodrich Petroleum Corporation (NYSE:GDP) has been recording operating losses in the past several quarters, and in fact has been missing estimates in the process as well.

Contra to Pickens, we think that oilfield services is an interesting industry at this time, and National Oilwell Varco seems to be a good place to start looking for value in that area. Refiners- including Valero Energy Corporation (NYSE:VLO) as well as its peers- also look to be priced attractively even after their run-up in price. As for the oilman’s E&P picks, Goodrich seems a bit dependent on a turnaround for our liking. Apache Corporation (NYSE:APA) is certainly better positioned, and if the company can match the trajectory analysts are looking for it would turn out to be a good value, but we aren’t sure it’s necessarily a better buy than the majors.

Disclosure: I own no shares of any stocks mentioned in this article.

Dividend Stock Alert - Billionaire Robbins' Top Dividend Idea With 70% Upside Potential

Get Paid 3.5% Per Year While Waiting For The Stock Appreciate 70%

Larry Robbins' Glenview Capital Opportunity Fund returned 101.7% in 2013 and Robbins personally made $750 million. The same fund returned 25.3% in 2014. In this FREE REPORT we will share Robbins' top dividend idea that yields 3.5% and has been increasing its dividends for 39 consecutive years. Robbins thinks the stock has the potential to appreciate 70%.

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Click Here to Read Comments
X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!