| Stock | Price | 52 Week Range | Marketcap | EPS | Dividend Yield | Chart (24H) | Sector | Employees | Last Updated |
|---|---|---|---|---|---|---|---|---|---|
| $312.84 | 329.99B | 7.48 | 0.46% | Industrials | 53,000 | 17 hours ago | |||
| $23.34 | 8.35B | 2.89 | 4.28% | Energy | 2,305 | 17 hours ago | |||
| $186.99 | 3.28B | 6.81 | 0.00% | Energy | 235 | 17 hours ago | |||
| $32.59 | 4.61B | 0.84 | 0.00% | Energy | 458 | 17 hours ago | |||
| $31.17 | 67.49B | 2.67 | 6.99% | Energy | 0 | 17 hours ago |
The energy sector has always been a goldmine of opportunities for savvy investors. And when it comes to discerning the best of the best, few names carry as much weight as T. Boone Pickens. A legendary figure in the oil and gas industry, Pickens turned a small fortune into a multimillion-dollar empire, creating BP Capital along the way. Today, we delve into five energy stocks that have caught Pickens’ keen eye—each one holding the promise of growth and profitability.
Why This Opportunity Is Exciting
What makes T. Boone Pickens’ stock picks worth noting? For starters, the man turned a few million dollars into approximately $5 billion, amassing an estimated personal fortune of $1.2 billion. His latest 13-F filing with the SEC provides a rare glimpse into the strategic investments of BP Capital, the hedge fund he manages. By following his lead, retail investors can gain invaluable insights into potentially lucrative investments in the energy sector.
These stocks aren’t just any ordinary picks—they represent some of Pickens’ most promising holdings. Each company mentioned below has unique strengths and prospects, aligning perfectly with the expertise and strategic vision of one of the industry’s most respected figures.
Editor's Note: Analysis and insight for this article were originally sourced from our friends at InvestorPlace
General Electric (GE): Reinventing Itself in the Energy Sector
Why It’s a Good Investment
General Electric isn’t only about light bulbs and appliances anymore. The company has aggressively expanded into the oil and gas sector, investing more than $15 billion in recent years. This substantial investment has already started to pay off, with GE Oil & Gas posting a 16% year-over-year revenue growth for 2012. The firm produces a host of essential equipment for energy production, including sub-sea trees and pumps, making it a key player in the oil services industry.
Adding to its credentials, GE has been making strategic acquisitions, like its buyout of Lufkin Industries, an artificial lift and pump-jack manufacturer. This acquisition is set to make oil & gas GE’s third-largest unit, solidifying its position in the market. Given the ever-growing global energy demand, GE is positioning itself for future success. Should GE successfully divest its troubled finance arm and shift focus back to its industrial roots, the potential rewards for investors could be substantial.
Relevance to the Theme
Why does Pickens find GE appealing? Simple—GE’s significant contributions to the oil services industry align well with Pickens’ affinity for energy stocks poised for expansion. The addition of a 10,000-share stake in GE by BP Capital illustrates a strong vote of confidence in the company’s strategic direction.
Analyst Ratings and Forecasts
| Metric | Value |
|---|---|
| Consensus Rating | Hold |
| Average Price Target | $14.41 |
| Potential Gain | 15.1% |
| Number of Ratings | 22 |
Summary of Analysts’ Outlook:
Analysts have a mixed outlook on General Electric, with a consensus rating of “Hold”. While some analysts see potential for growth and improvement in the company’s Industrial segment, others are concerned about the impact of the COVID-19 pandemic on the company’s aviation and healthcare businesses. Additionally, some analysts are cautious about the company’s debt levels and the potential for margin pressure.
Apache (APA): Robust Production Growth Amid Global Tensions
Why It’s a Good Investment
Apache stands out as one of the largest independent oil and gas companies in the U.S., boasting approximately 3 billion barrels of oil equivalent in proven reserves and a market cap of just over $32 billion. Despite the geopolitical uncertainties it faces, particularly in regions like Egypt, Apache has demonstrated robust production growth.
A key selling point is Apache’s attractive valuation. With a forward P/E ratio of just 9, it offers a compelling bargain compared to energy giants such as Exxon Mobil. Analyst earnings estimates indicate that Apache has significant upside potential, thanks to its innovative approach to unconventional resources.
Relevance to the Theme
Pickens’ addition of 120,000 shares in Apache underscores his belief in the company’s long-term value, even amid temporary geopolitical instability. Apache’s efforts to tap into new resources align seamlessly with BP Capital’s investment focus on promising energy sector opportunities.
Analyst Ratings and Forecasts
| Category | Value |
|---|---|
| Consensus Rating | Overweight |
| Average Price Target | $34.14 |
| Potential Gain | 23.1% |
| Number of Ratings | 24 |
Summary of Analysts’ Outlook:
Apache Corporation has a consensus rating of “Overweight” from analysts, indicating a positive outlook. The average price target of $34.14 suggests a potential gain of 23.1% from the current price. Analysts are optimistic about the company’s prospects, driven by its strong operational performance, solid balance sheet, and attractive valuation.
Gulfport Energy (GPOR): Raking in the Rewards from Shale Oil
Why It’s a Good Investment
Gulfport Energy has zeroed in on prime acreage in Ohio’s Utica Shale, a region rich in Natural Gas Liquids (NGLs) and shale oil. The company’s commitment to this area is shown by its substantial investments, with $500 million out of its $580 million capex budget allocated to Ohio. The firm realizes a full 93% of its production from NGLs and shale oil, putting it in a strong position compared to competitors who have pulled back from the Utica play.
The company’s drilling results have been nothing short of spectacular, making it a strong contender among its peers. Its smaller market cap also makes Gulfport an attractive acquisition target for larger firms aiming to boost their production capabilities.
Relevance to the Theme
By adding 125,000 shares of Gulfport to its portfolio, BP Capital is signaling strong confidence in the company’s profitable production mix. Gulfport’s strategic play in the Utica Shale perfectly mirrors Pickens’ interest in high-return energy investments.
Analyst Ratings and Forecasts
| Metric | Value |
|---|---|
| Consensus Rating | Overweight |
| Average Price Target | $84.14 |
| Potential Gain | 34.1% |
| Number of Ratings | 14 |
Summary of Analysts’ Outlook:
Analysts have a bullish outlook on Gulfport Energy Corporation, with a consensus rating of Overweight. The average price target suggests a potential gain of 34.1% from the current stock price. The company’s strong operational performance, increasing production, and cost savings initiatives are likely driving the positive sentiment.
CONSOL Energy (CNX): Standing Strong in Coal and Gas
Why It’s a Good Investment
CONSOL Energy is a unique player that operates in both the coal and natural gas sectors, offering a diversified approach to energy production. The company’s efficient operations span thermal coal, metallurgical coal, and natural gas, making it a robust entity in America’s energy landscape.
With its natural gas operations focused on the Marcellus and Utica shales, CONSOL enjoys a premier position in the energy market. Despite the volatility of coal markets, CONSOL’s cost-effective production processes make it a reliable investment. BP Capital’s substantial 213% increase in its stake in CONSOL further validates its potential for future growth.
Relevance to the Theme
CONSOL’s diverse energy mix and efficient operations are exactly the kind of factors that align with BP Capital’s strategies. Pickens’ expanding stake in CONSOL underlines his belief in its resilience and long-term growth prospects.
Analyst Ratings and Forecasts
| Metric | Value |
|---|---|
| Consensus Rating | Overweight (4.33/5) |
| Average Price Target | $34.74 |
| Potential Gain | 21.5% |
| Number of Ratings | 18 |
Summary of Analysts’ Outlook:
Analysts have a positive outlook on CONSOL Energy, with a consensus rating of Overweight (4.33/5). The average price target of $34.74 suggests a potential gain of 21.5% from the current price. Analysts are optimistic about the company’s diversified energy portfolio and its ability to navigate market volatility.