Lucas Capital Management’s Top Picks From The Latest 13F: Dorchester Minerals LP (DMLP), Whiting Petroleum Corp (WLL) & Others

Hedge funds and Institutional Investors are now filing their new 13F filings, disclosing their equity portfolios as at the end of Dec 31, 2013.  Scientific studies have found that retail investors, who are known to rely on the strategies which big hedge funds activities follow, are successful by nearly 18 percentage points in a year. However, the study also noted that, the success rate was achieved when the small investor remained invested in the strategy over a longer period.  In this piece we will focus on Lucas Capital Management, led by Russell Lucas.

In 13F filing Lucas Capital Management, disclosed its portfolio’s total value of $299.68 million, for the period ending Dec 31, 2013. The numbers show a flat growth, in comparison to the previous quarter equity portfolio of $293.13 million.We have, therefore, selected the five largest holdings – in terms of value – that Russell Lucas has held in his equity portfolio, at the end of last year.

Out of the top-five largest value holdings, the first on the list is Dorchester Minerals LP (NASDAQ:DMLP). Lucas Management has purchased some more shares during the fourth quarter, increasing the position to 530,767 shares, from the previous amount of 526,907 shares. The value of the stake increased to $13.79 million, from $12.59 million at the end of the third quarter.

During the fourth quarter of 2013, Dorchester distributed cash in the amount of $0.47 per common share, slightly up from $0.46 per share in the previous quarter.

Whiting Petroleum Corp (NYSE:WLL)

Second of the top-five companies on Lucas Management’s list includes Whiting Petroleum Corp (NYSE:WLL). The fund trimmed the position to nearly 173,600 shares, during the fourth quarter, from 186,100 million held earlier, the current value amounting to $10.74 million.

In December, Whiting Petroleum Corp (NYSE:WLL) offered to exchange all of its outstanding unregistered 5.750% Senior Notes due 2021, issued in September, for newer registered 5.750% Senior Notes, also due 2021. In September, 5.750% Senior Notes due 2021 were issued against the average principal amount of $800 million, as these were valid as per the Exchange Offer.

Whiting Petroleum Corp’s (NYSE:WLL) saw a total of 8.533 million barrels of oil/natural gas liquids (NGLs) production, of which 87%  were represented by crude products. Production increased by 12% to 92,750 BOE/d over the third quarter of 2012. Net Income in the third quarter was $204.1 million, a jump of 146% from $82.9 million in the third quarter of 2012.

Third on our top-five list is Pioneer Natural Resources (NYSE:PXD) with 55,100 shares, valued at $10.14 million, the stake being initiated in the fourth quarter of 2013. 

Recently, the company reported a production of 173 thousand barrels oil equivalent per day in the fourth quarter. The production was 6 MBOEPD lower than its estimated production, of which 5 MBOEPD of curtailment was attributed to severe winter weather in Texas. All the affected wells have now returned to their normal production. The remaining 1 MBOEPD of curtailment was due to facility freeze-ups in Pioneer’s Eagle Ford Shale, which has also returned to normal production.

Of the hedge funds we track, John H. Scully’s Spo Advisory Corp is the largest shareholder with 4.52 million shares in its equity portfolio.

Lucas Capital Management’s fourth-largest holding is Denbury Resources Inc. (NYSE:DNR) with a $7.72 million stake. The fund holds 469,594 shares, which is nearly double the quantity of 215,194 shares it held at the end of September.

Denbury Resources Inc. (NYSE:DNR)  initiated a share repurchase program, back in 2011, and, at the beginning of January, the Board approved to increase the amount by another $250 million, raising the previous value of $1.16 billion. Meanwhile, it had around $422 million worth of shares authorized to buy back by the end of last year. Denbury has spent $740 million for acquiring roughly 48 million common shares, at an average cost of $15.55 per share.

Other hedge funds, which held Denbury Resources Inc. (NYSE:DNR) shares in the latest round of 13F filings, include Mak Capital One, managed by Michael Kaufman, with an ownership of 2.51 million shares, followed by Wayne Cooperman’s Cobalt Capital Management, holding 1.10 million shares.

Lucas Management’s fifth most valuable holding is represented by Energy Transfer Equity, L.P. (NYSE:ETE). The stake was trimmed to  85,840 shares valued at $7.02 million, from 109,960 shares held at the end of the third quarter.

Energy Transfer Equity, L.P. (NYSE:ETE) has split its Partnership’s outstanding common units in two-for-one. Following the split, the Partnership has approximately 560 million ETE common units outstanding.

Mason Capital Management, led by Kenneth Mario Garschina is the largest shareholder of all the hedge funds we track, which holds 7.50 million shares, with a reported value of $492.95 million.

Disclosure: none

Recommended Readings:

Michael Novogratz and Insiders Are Bullish About These 4 Stocks

Leon Cooperman Talks Emerging Markets, 2014 Market Prediction

Luxor Capital Group Reveales New Position in BJ’s Restaurants, Inc. (BJRI)

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

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!