Bloomberg News

Pickens Sells North American Producers Encana, Cabot and Apache

November 14, 2012

Billionaire investor T. Boone Pickens cut his energy equity fund’s holdings, selling North American oil and gas producers including Encana Corp., Cabot Oil & Gas Corp. (COG:US) and Apache Corp. (APA:US) during the third quarter.

Pickens’s Dallas-based BP Capital Management LP sold 341,380 shares of Encana valued at $7.1 million, 165,902 shares of Cabot valued at $6.5 million and 42,216 shares of Apache valued at $3.7 million in the three months ended Sept. 30, according to a filing with the U.S. Securities and Exchange Commission.

The fund sold off holdings in seven other energy companies including Occidental Petroleum Corp. (OXY:US) and power producers NRG Energy Inc. (NRG:US) and Calpine Corp. (CPN:US)

Natural gas producers’ earnings and cash flow have been trimmed by a plunge in prices as gas futures traded in New York touched a 10-year low in April amid a glut of the fuel. The prices have since risen, and climbed to a one-year high today as colder weather approached parts of the U.S.

The value of Pickens’s equity holdings fell 24 percent to $98.8 million as of Sept. 30, from $130.7 million at the end of the second quarter, according to the filing.

In the latest quarter, Pickens’ fund bought coal producers including 237,700 shares of Arch Coal Inc. (ACI:US) valued at $1.5 million and 48,075 shares of Consol Energy Inc. (CNX:US) valued at $1.4 million. BP Capital also took a $5.1 million stake in oil field services provider Halliburton Co. (HAL:US), purchasing 152,334 shares.

Pickens sold down stakes in Transocean Ltd., McMoRan Exploration Co. (MMR:US) and National Oilwell Varco Inc. (NOV:US) His fund increased stakes in Valero Energy Corp. (VLO:US), Sandridge Energy Inc. (SD:US), Southwestern Energy Co. (SWN:US) and Anadarko Petroleum Corp. (APC:US)

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.

To contact the reporters on this story: Mark Chediak in San Francisco at mchediak@bloomberg.net; Edward Klump in Houston at eklump@bloomberg.net

To contact the editor responsible for this story: Susan Warren at susanwarren@bloomberg.net


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Companies Mentioned

  • COG
    (Cabot Oil & Gas Corp)
    • $30.21 USD
    • -0.39
    • -1.29%
  • APA
    (Apache Corp)
    • $64.05 USD
    • -1.38
    • -2.15%
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