Billionaire investor T. Boone Pickens’ energy holdings fell by almost half last quarter as he sold shares of battered oil producers including Goodrich Petroleum Corp. (NYSE: GDP) and EP Energy Corp. (NYSE: EPE), Bloomberg said Feb. 17.
The value of Pickens’ Dallas-based TBP Investments Managements fund fell by $50.7 million in the fourth quarter to $51.5 million, according to data compiled by Bloomberg from filings with the Securities and Exchange Commission (SEC) on that day. The fund sold out of eight companies, including 339,550 shares in Goodrich, which lost 70% of its value in the fourth quarter. EP Energy fell by 40%.
Oil’s more than 51% decline since June 20 has eroded profits and forced major producers and drillers to cut more than $40 billion in spending and fire 50,000 workers. The Standard & Poor’s 500 Energy Index fell 19% in the second half of 2014.
TBP Investments bought into larger energy companies that analysts and investors perceive as more stable because of their holdings in productive shale plays or consistent contracts.
The fund bought new positions in 15 companies, including Anadarko Petroleum Corp. (NYSE: APC), Baker Hughes Inc. (NYSE: BHI), Concho Resources Inc. (NYSE: CXO) and Schlumberger Ltd. (NYSE: SLB). The fund also bought new stakes in natural gas-focused producers Southwestern Energy Co. (NYSE: SWN) and Cabot Oil & Gas Corp. (NYSE: COG) and banks JPMorgan Chase & Co. and Wells Fargo & Co.
TBP Investments’ allocations include 95.4% invested in energy stocks. Financial companies accounted for the second-largest allocation with 2.6%.
Money managers who oversee more than $100 million in equities must file a Form 13F with the SEC within 45 days of each quarter’s end to show their U.S.-listed stocks, options and convertible bonds. The filings don’t show non-U.S. securities or how much cash the firms hold.
Recommended Reading
FERC Approves Extension of Tellurian LNG Project
2024-02-19 - Completion deadline of Tellurian’s Driftwood project was moved to 2029 and phase 1 could come online in 2027.
US NatGas Flows to Freeport LNG Export Plant Drop Near Zero
2024-04-11 - The startup and shutdown of Freeport has in the past had a major impact on U.S. and European gas prices.
Freeport LNG Says Trains 1, 2 at Texas Facility May Shut Until May
2024-03-20 - Freeport LNG on March 20 said its Train 2 liquefaction unit at the Texas plant has been shut down, while Train 1 will be taken down imminently as it expects inspections and any subsequent repairs at both the units to be completed by May.
Freeport LNG's Feedgas Usage Falls Again
2024-03-11 - Natural gas flowing to Freeport LNG's Texas facility was down to 758 MMcf on March 11 from 1463 MMcf on March 3, LSEG data showed.
Asia Spot LNG at 3-month Peak on Steady Demand, Supply Disruption
2024-04-12 - Heating demand in Europe and production disruption at the Freeport LNG terminal in the U.S. pushed up prices, said Samuel Good, head of LNG pricing at commodity pricing agency Argus.