Billionaire T. Boone Pickens’ New Energy Stock Picks

#3 Patterson-UTI Energy Inc. (NASDAQ:PTEN)

– Shares Owned by BP Capital (as of December 31): 366,703

– Value of BP Capital’s Holding (as of December 31): $5.53 million

BP Capital initiated a new position in Patterson-UTI Energy Inc. (NASDAQ:PTEN) during the October-to-December period, comprising 366,703 shares valued at $5.53 million. The company owns and operates one of the nation’s largest fleets of land-based drilling rigs, which consists of 221 marketable land-based drilling rigs. The company also owns a large fleet of pressure pumping equipment. Although crude oil prices are well above the multi-year lows reached earlier this year, Patterson-UTI Energy Inc. (NASDAQ:PTEN) is most likely facing a sustained decline in contract drilling and pressure pumping activity levels. The company reported 2015 operating revenue of $1.89 billion, down from $3.18 billion reported for 2014. Patterson-UTI had 80 drilling rigs operating in the United States at the end of 2015, sharply down from a peak of 214 rigs reached in October 2014. Nonetheless, Steven Cohen’s Point72 Asset Management upped its position in Patterson-UTI Energy Inc. (NASDAQ:PTEN) by 1.70 million shares during the December quarter, to 2.82 million units.

#2 Superior Energy Services Inc. (NYSE:SPN)

– Shares Owned by BP Capital (as of December 31): 412,045

– Value of BP Capital’s Holding (as of December 31): $5.55 Million

T. Boone Pickens purchased a 412,045-share stake in Superior Energy Services Inc. (NYSE:SPN) during the last quarter of 2015, which was valued at $5.55 million on December 31. The shares of the provider of oilfield services (OFS) and equipment to the oil and gas industry are down by a whopping 57% over the past 12 months. The demand and prices for the company’s services in the U.S land businesses have declined dramatically throughout 2015, especially in the Production Services and Onshore Completion and Workover Services segments. Of course, Superior Energy Services Inc. (NYSE:SPN)’s financial performance is highly dependent on the amount of spending by exploration and production companies, which is affected by crude oil prices. In December 2015, Credit Suisse upgraded the stock to ‘Outperform’ from ‘Neutral’, along with several other stocks focused on unconventional North American activity, saying that OFS stocks usually move up from early February through the middle of April. Richard S. Pzena’s Pzena Investment Management owns 5.13 million shares of Superior Energy Services Inc. (NYSE:SPN) as of December 31.

#1 Sunoco Logistics Partners L.P. (NYSE:SXL)

– Shares Owned by BP Capital (as of December 31): 271,365

– Value of BP Capital’s Holding (as of December 31): $6.97 Million

BP Capital’s largest equity holding at the end of December was represented by Sunoco Logistics Partners L.P. (NYSE:SXL). During the December quarter, the renowned “oilman” acquired a new stake of 271,365 shares in the limited partnership, which owns and operates a logistics business. That logistics business consists of crude oil, refined products and natural gas liquids pipelines, as well as terminalling and storage assets, and crude oil and other marketing assets. Earlier this year, Sunoco Logistics Partners L.P. (NYSE:SXL) announced that its general partner, Sunoco Partners LLC, declared a cash distribution of $0.479 per common unit for the fourth quarter of 2015, which marked an increase of 5% from the cash distribution of $0.458 per unit paid for the third quarter of 2015. Let’s not forget to mention that the shares of Sunoco Logistics have lost 53% over the last year. Jim Simons’ Renaissance Technologies LLC reduced its exposure to Sunoco Logistics Partners L.P. (NYSE:SXL) by nearly 459,000 shares during the fourth quarter of 2015, to 1.02 million shares.

Disclosure: None