When private equity firm Apollo Global Management (APO) started selling, Pickens started buying. Pickens has added 150,000 shares of Athlon Energy (ATHL) since it went public back in the beginning of August — a value of $4.4 million.
The mid-cap producer focuses its activities oil and liquids-rich natural gas reserves in the Permian Basin. That strategy has suited the new company well, as regional production and higher oil prices have helped ATHL trounce earnings estimates for two consecutive quarters. For the latest quarter, Athlon managed to realize a 109% increase in adjusted earnings as well as see a 69% increase in daily production volumes.
Since going public, ATHL has gone straight up and has returned a staggering 60% for investors who bought in at the IPO price of $20.
But given the awesome production and earnings gains that ATHL has already put in, it’s safe to say that there’s plenty opportunity for more as the company matures. For investors like Pickens, that could mean a lot of money.