| Stock | Price | 52 Week Range | Marketcap | EPS | Dividend Yield | Chart (24H) | Sector | Employees | Last Updated |
|---|---|---|---|---|---|---|---|---|---|
| $267.80 | 283.99B | 7.02 | 0.54% | Industrials | 53,000 | 3 seconds ago | |||
| $20.51 | 7.34B | 2.89 | 4.94% | Energy | 2,305 | 9 seconds ago | |||
| $166.10 | 2.92B | 6.80 | 0.00% | Energy | 235 | 35 seconds ago | |||
| $28.55 | 4.04B | 0.84 | 0.00% | Energy | 458 | 2 seconds ago | |||
| $31.58 | 68.38B | 2.67 | 6.94% | Energy | 0 | 3 seconds ago |
When it comes to finding profitable investments in the energy sector, few voices carry as much weight as T. Boone Pickens. Known for his successful energy-centric hedge fund, BP Capital, Pickens has a knack for identifying high-potential stocks. Our team has parsed through BP Capital’s latest filings to bring you five energy stocks Pickens himself endorses. These stocks are not just names on a list; they represent lucrative opportunities verified by one of the industry’s foremost authorities.
Editor's Note: Analysis and insight for this article were originally sourced from our friends at InvestorPlace
General Electric (GE)
General Electric (GE): From Industrial Giant to Energy Titan
This isn’t your grandfather’s General Electric (NYSE: GE). The major industrial manufacturer is quickly becoming a key player in the oil services industry. Over the past decade, GE has invested more than $15 billion to expand its oil and gas division, signaling a major shift from its diversified conglomerate roots into significant energy market presence. Recently, GE Oil & Gas posted an impressive 16% year-over-year jump in revenue, marking its rapid growth.
Why Pickens Backs GE
Pickens’ endorsement of GE is rooted in the company’s forward-thinking strategy and substantial investments. GE has made notable acquisitions, such as the purchase of Lufkin Industries, enhancing its portfolio with state-of-the-art energy production equipment. Pickens’ addition of a 10,000-share stake in GE indicates confidence that the company’s focus on returning to industrial manufacturing and shedding its troubled finance arm will yield substantial rewards for investors. Given the escalating global energy demand, GE could be positioned for immense future success.
Analyst Ratings and Forecasts for GE:
| Category | Value |
|---|---|
| Consensus Rating | Overweight |
| Average Price Target | $14.31 |
| Potential Gain | 24.1% |
| Number of Ratings | 22 |
Summary of Analysts’ Outlook:
Analysts have a positive outlook on General Electric, with a consensus rating of Overweight. The average price target of $14.31 suggests a potential gain of 24.1% from the current price. Most analysts believe that GE’s efforts to simplify its business, reduce debt, and focus on its core industrial segments will drive growth and improve profitability.
Apache (APA)
Apache (APA): Hidden Gem with Massive Upside Potential
Apache Corporation (NYSE: APA) stands out as one of the largest independent oil and gas firms in the U.S., boasting approximately 3 billion barrels of oil equivalent in proven reserves and a significant market cap of over $32 billion. BP Capital added about 120,000 shares of Apache during Q1 2013, indicating T. Boone Pickens’s keen interest.
Why Apache is a Value Play
Despite facing geopolitical instability in Egypt, which hosts 10% of Apache’s reserves, the company’s overall production continues to grow robustly. This resilience presents a value opportunity, with Apache’s forward P/E ratio sitting attractively at just 9, well below the double-digit valuations of competitors like Exxon Mobil (NYSE: XOM). Analyst estimates predict more upside for Apache compared to its larger peers, making it a compelling investment for value-conscious investors. Pickens’ interest underscores his belief in Apache’s long-term potential despite short-term challenges.
Analyst Ratings and Forecasts for APA:
| Category | Rating/Value |
|---|---|
| Consensus Rating | Overweight (4.33/5) |
| Average Price Target | $34.44 |
| Potential Gain | 24.1% |
| Number of Ratings | 24 |
Summary of Analysts’ Outlook:
Analysts have a bullish outlook on APA, with a consensus rating of Overweight and an average price target that suggests a potential gain of 24.1% from the current price. Most analysts believe that APA’s strong operational performance, solid balance sheet, and attractive valuation will drive its stock price higher.
Gulfport Energy (GPOR)
Gulfport Energy (GPOR): Shale Specialist Set for Major Gains
Gulfport Energy (NASDAQ: GPOR) has achieved remarkable success in Ohio’s Utica Shale, focusing on Natural Gas Liquids (NGLs) and shale oil. Despite other companies exiting the region, Gulfport’s strategic focus on the right acreage has allowed it to achieve a remarkable 93% of its production from NGLs.
Pickens’ Shale Savvy
BP Capital added 125,000 shares of Gulfport during the first quarter, recognizing its potential. With Gulfport allocating nearly $500 million of its $580 million capex budget to developing its Utica Shale acreage, there is strong confidence in profitable returns. Beyond that, Gulfport’s small market cap makes it a prime buyout target, adding further investment appeal. Even without a buyout, Gulfport’s focus on an increasingly profitable production mix ensures it remains a robust investment.
Analyst Ratings and Forecasts for GPOR:
| Category | Rating/Value |
|---|---|
| Consensus Rating | Overweight |
| Average Price Target | $73.17 |
| Potential Gain | 34.1% |
| Number of Ratings | 14 |
Summary of Analysts’ Outlook:
Analysts have a positive outlook on Gulfport Energy Corporation, with a consensus rating of Overweight. The average price target of $73.17 indicates a potential gain of 34.1% from the current price. Most analysts believe the company’s strong operational performance, cost savings initiatives, and growth prospects will drive its stock price higher.
CONSOL Energy (CNX)
CONSOL Energy (CNX): Multi-Resource Excellence Positioned for Growth
There has been a fierce battle between coal and natural gas for dominance in America’s energy pie, but none of it matters to CONSOL Energy (NYSE: CNX). The firm’s unique advantage lies in its diversified production of both coal and natural gas, spanning thermal coal for power and metallurgical coal for steel production, as well as natural gas from prolific shales like the Marcellus and Utica.
Pickens’ Strong Bet
Pickens increased his stake in CONSOL by 213%, signaling high confidence in the company’s cost-effective operations and dual-energy focus. Despite coal facing headwinds, CONSOL’s efficiency and diversification provide resilience and growth opportunities. CONSOL’s strong position in both coal and natural gas markets allows it to adapt seamlessly to shifting energy market dynamics, making it an appealing long-term investment.
Analyst Ratings and Forecasts for CNX:
| Metric | Value |
|---|---|
| Consensus Rating | Overweight |
| Average Price Target | $14.44 |
| Potential Gain | 24.1% |
| Number of Ratings | 12 |
Summary of Analysts’ Outlook:
Analysts have a positive outlook on CNX, with a consensus rating of Overweight. The average price target of $14.44 suggests a potential gain of 24.1% from the current price. This indicates that analysts expect the stock to rise in the near future.
Enterprise Products Partners LP (EPD)
Enterprise Products Partners LP (EPD): Managing Energy with Superior Expertise
Enterprise Products Partners LP (NYSE: EPD) excels in energy logistics, operating a vast network of pipelines and a substantial fleet for marine transport. BP Capital’s new 4,000-share position in EPD highlights its strategic importance in Pickens’ portfolio.
Logistics for the Win
EPD’s growing crude-by-barge operations address the transportation needs of energy companies in regions like the Bakken, where pipeline infrastructure is lacking. This logistics prowess ensures timely delivery of crude oil to refineries and end users, enhancing profitability. EPD has invested around $25 million in its fleet this year, expanding its capacity and securing long-term growth. Pickens’ recognition of EPD’s logistical strength underscores its pivotal role and future potential in energy infrastructure.
Analyst Ratings and Forecasts for EPD:
| Metric | Value |
|---|---|
| Consensus Rating | Overweight (Buy) |
| Average Price Target | $28.44 |
| Potential Gain | 14.1% |
| Number of Ratings | 22 |
Summary of Analysts’ Outlook:
Analysts have a positive outlook on EPD, with a consensus rating of Overweight (Buy). The average price target suggests a potential gain of 14.1% from the current price. Most analysts recommend buying or holding the stock, citing its strong financial performance, diversified operations, and attractive dividend yield.
These five stocks, underlined by T. Boone Pickens’ stamp of approval, offer compelling investment opportunities in the ever-evolving energy sector. From General Electric’s transformative approach to Enterprise Products Partners’ logistical prowess, each stock carries the potential for significant returns grounded in strategic market expertise.