T. Boone Pickens started his career as an oilman. He parlayed his knowledge and experience into forming BP Capital as a fund that is focused on profiting from the energy markets. Because oil, and to a greater extent energy, was Pickens bread and butter for so many years, whether he takes long or short positions has more to do with how he interprets the company’s growth and the industry at large. However, because he tends to make directional bets, when he profits, he profits bug, but when he losses, the losses can be staggering. Here are T. Boone Pickens’ top 10 favorite stocks:
1. Chesapeake Energy Corp (CHK) is Pickens largest position. It has a $15.95 billion market cap and a price to earnings ratio of 16.72. CHK has a dividend yield of 1.40% and recently traded for $25.12 a share. Pickens has a $30.7 million position in CHK.
2. Noble Corp Baar (NE) is a $26.5 million position for Pickens. It is a $7.31 billion market cap company and offers a 1.80% dividend yield. It currently has a price to earnings ratio of 25.16 and recently traded at $28.98 a share.
3. BP, Plc. (BP) offers an impressive dividend yield of 4.70%. It has an $111.81 billion market cap and a price to earnings ratio of 5.64. Pickens has a $25.8 million stake in the company. It recently traded at $35.42 per share.
4. Plains Exploration & Production, Co. (PXP) is a $3.05 billion market cap company. Pickens owns $22.3 million in PXP. It has a price to earnings ratio of 15.72 and most recently traded at $21.64/share.
5. McMoran Exploration Co. (MMR) recently traded at $9.04 a share and has a $1.43 billion market cap. Pickens holds $20.9 million stake in MMR. Steven Cohen, SAC Capital Advisors is also a fan (check out Cohen’s favorite positions).
6. Sandridge Energy, Inc. (SD) is a $20.8 million position for Pickens. It has a market cap of $2.16 billion and recently traded for $5.42 a share. SD is also a favorite of Wallace Weitz, Walce R. Weitz & Co. (see Weitz’s top picks).
7. Weatherford International Ltd (WFT) is a $20.7 million stake for Pickens. It is an $8.97 billion market cap company and recently traded for $11.98 a share. Richard Chilton, Chilton Investment Company, is also a fan of WFT (read about Chilton’s top positions here).
8. EOG Resources, Inc. (EOG) recently traded for $73.66 a share. It has a market cap of $19.79 billion and a price to earnings ratio of 46.36. EOG also offers a 0.90% dividend yield. Pickens holds $20.1 million in the company.
9. Apache Corp (APA) is a $30.26 billion company offering investors a 0.70% yield. It has a price to earnings ratio of 7.92 and recently traded at $78.82 a share. Pickens has a stake valued at $18.3 million in the company
10. National Oilwell Varco, Inc. (NOV) last traded for $52.78 a share. It has a market cap of $22.36 billion and a price to earnings ratio of 12.81. It also offers a 0.90% dividend yield. NOV is a $16.2 million position for Pickens.