In his more than 60-year business career, T. Boone Pickens has become one of the most successful institutional managers focused on the oil and natural gas markets.
Through various funds at BP Capital, T. Boone Pickens has amassed quite a fortune- which he’s given most of it away to charity- and has become an outspoken proponent of American energy independence.
And given his core competency and success with energy stocks, investors looking to add the sector may just want to follow his lead.
Traditionally, investors have been able to follow their favorite gurus through a firm’s 13F filing with the Securities & Exchange Commission (SEC). The filing gives regular retail investors access to what the celebrated oilman is/was thinking. Unfortunately, the last time Pickens’ and BP Capital made such a filing was November of last year.
Luckily, T. Boone Pickens is outspoken and appears regularly on financial television, does plenty of interviews and has a pretty active Twitter account. It is here we can gleam some info on the oilman’s stock picks and pans.
Here are three of the best energy stocks picks from T. Boone Pickens:
T. Boone Pickens Energy Stocks: Clean Energy Fuels Corp (CLNE)
As various energy stocks have fracked hard into America’s various shale fields, we’ve unearthed a virtual ocean of natural gas. So much so, that we are struggling to find uses for all the fuel we are finding.
Pickens has been fighting hard for America to begin using natural gas a transportation fuel for both long term trucking and personal vehicle use.
Supplying that compressed natural gas (CNG) is T. Boone Pickens Pick Clean Energy Fuels Corp (CLNE).
CLNE operates the largest network of CNG refueling stations in the country. The firm runs more than 500 natural gas fueling stations across 39 states and several points in Canada. More than 780 fleet customers — such as Waste Management Inc (WM) and United Parcel Service, Inc. (UPS) — use Clean Energy Fuels to supply their natural gas-powered trucks.
And as the largest CNG refueler, CLNE has continued to use its large size to its advantage. For the latest reported quarter, the energy stock saw a 22% increase in “gallons delivered” and a 29% jump in revenue. It also continues to rack-up long term contracts with new fleet customers.
As for CLNE stock, shares haven’t performed that great. Low oil prices have helped push CLNE down around 48% this year. However, given the long-term promise of the company, investors may want to follow Pickens and snatch up some shares.
T. Boone Pickens Energy Stocks: Gastar Exploration Inc. (GST)
While Pickens has owned and invested in plenty of energy giants, some of his smaller energy stocks could be more interesting for investors. One could be small-cap E&P firm Gastar Exploration Inc. (GST).
GST’s main bailiwick is the rich Marcellus Shale. However, the firm doesn’t really focus on shale located in Pennsylvania, but that in West Virginia. Gastar owns roughly 81,600 gross acres in the liquids rich window of the shale play. Roughly 30% of its daily production is higher priced oil, condensate and natural gas liquids (NGLs). More importantly, that production has grown by 55% year-over year. But GST isn’t just resting on the Marcellus Formation for its future.
After purchasing some assets from Chesapeake Energy Corporation (CHK) on the cheap, Gastar now has producing acreage in Oklahoma — Pickens’ home turf. The newly fracked Hunton Limestone could prove to be a gusher for the smaller E&P firm, while the remaining assets in the state steadily churn out energy from more than 200 wells.
All in all, GST’s assets are finally starting to pay off as the small-cap has finally begun to make money and profits off of its production.
For investors, following Boone and buying GST shares could a lucrative venture. Gastar has all the makings of a real winner.
T. Boone Pickens Energy Stocks: Halliburton Company (HAL)
The ones who really got rich off of the California gold rush weren’t the prospectors, but the store owners who sold all the picks, pans and shovels. In the energy stocks sector that’s the oil services firms and T. Boone Pickens has an affinity for them — Halliburton Company (HAL) in particular.
HAL is one of world’s largest oil services firms and is the leader when it comes to fracking North America’s shale. The firm basically created the technology; that position alone makes it a great energy stocks pick. However, Halliburton could even be better in the long term.
That’s because it’s agreed to buy-out slightly smaller rival Baker Hughes Incoroprated (BHI).
The combined company would be a drilling, logistics and well services monster with a market cap of about $70 billion and nearly 140,000 employees. That bulk has some pretty big advantages — like controlling roughly 40% of the entire U.S. fracking market. Not to mention giving HAL access to more international exposure and the ability to charge more for its services.
All in all, Pickens was right to bet on King HAL. Investors should too.
As of this writing, Aaron Levitt did not hold an interest in any of the aforementioned securities.