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

The fund added shares of National-Oilwell Varco, Inc. (NYSE:NOV), an equipment and services company providing drilling rigs and other products. National Oilwell Varco looks very attractive in terms of its financials and valuation metrics: earnings were up 15% in its most recent quarter compared to the same period in 2011, with strong revenue growth as well, yet the trailing P/E is only 12. The sell-side expects growth to continue and so the stock trades at 10 times forward earnings estimates and a five-year PEG ratio of 0.7. We’d be interested in taking a closer look at the company.

Finally, Chilton increased its stake in Schlumberger Limited. (NYSE:SLB) by over 250% to about 1 million shares. Schlumberger had been on our list of the ten most popular energy stocks among hedge funds (see the full rankings) with 51 funds and other notable investors reporting a position in the large energy services company. At a market capitalization of $96 billion, Schlumberger carries a trailing P/E of 17; Wall Street analysts expect enough growth despite the company’s size that the five-year PEG ratio is 0.9. We’d be interested in comparing it to peer Halliburton, which trades at a discount and which was also a popular hedge fund pick but whose business has not been performing as well recently.