Chevron, Schlumberger, and More: Billionaire Richard Chilton’s Energy Stock Picks

Page 1 of 2

CHILTON INVESTMENT COMPANYBillionaire Richard Chilton serves as the manager of Chilton Investment Company, which he founded in 1992 after having worked at Merrill Lynch and Allen & Company. We have gone through the fund’s most recent 13F filing to see what energy stocks it has owned, in case investors want to use these picks as a list of ideas for further research. Read on for our quick take on Chilton’s five largest holdings in the energy sector by market value or see the full list of stock picks.

The fund’s top energy stock pick was Cabot Oil & Gas Corporation (NYSE:COG), with a position of 1.8 million shares at the end of the quarter. Cabot is a $10 billion market cap independent oil and gas company with a focus on natural gas production in the United States. Fellow billionaire Dan Loeb’s Third Point reported a position of 1.8 million shares as well, though Third Point had been selling the stock during the quarter (check out Dan Loeb’s stock picks). The company reported double-digit growth rates in revenue and earnings in the third quarter versus a year earlier, but the current valuation already captures strong growth with a forward P/E of 36. We’re not sure that we would depend on Cabot to beat earnings expectations.

Chilton also liked Range Resources Corp. (NYSE:RRC), which like Cabot is most notably a producer of natural gas in the onshore U.S. It too is expensive in relation to its earnings: the stock trades at 60 times analyst consensus for 2013. While growth looks good, at least in terms of revenue, our impression is that as with Cabot it’s probably better to wait for natural gas prices to recover, allow the company to get some growth from there, and then see how the stock looks in terms of its value. At the moment we’re worried that it’s a bit speculative, even compared to companies like Chesapeake.

Chevron Corporation (NYSE:CVX), the large oil major, was another Chilton pick. Chevron trades at 9 times earnings, on either a trailing or a forward basis, and offers a dividend yield above 3% at current prices and dividend levels. However, the company’s business has not been doing well recently; last quarter revenue was down 10%, which contributed to a 33% decline in net income. Certainly all Chevron needs to do is preserve its current business and it would be well priced given its earnings multiple, but we think that we might prefer more stable oil majors like Exxon Mobil or BP.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 44 percentage points in 21 months Learn how!

Lists

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

12 Most Expensive Countries for Foreign Students

Top 30 Most Influential Women in the World

Top 20 Most Expensive New Year Eve Shows

Top 5 Best Vocational Careers

Top 10 Jobs for 2014 by Salary Gain (Predictions)

Top 5 Digital Trends for 2014

Top 6 Things You Can Do To Increase Your Productivity

Top 9 Trending Smartphones in 2013

Subscribe

Enter your email:

Delivered by FeedBurner

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 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!