T. Boone Pickens Might Have Caught the Exact Bottom in Oil Prices

Image of an oil derrick with blue skyFrom Charles Kennedy: Famed energy investor T. Boone Pickens recently disclosed a big uptick in oil investments in the second quarter, possibly timing the bottom of oil prices perfectly.

It’s a tough business right now for oil and gas companies, with some companies faring better than others with most majors releasing in-the-red second quarter financials, but business mogul T. Boone Pickens has made a bold and heavy return to the energy market, upping his stake in energy holdings by more than a third in the second quarter, according to data tallied by Bloomberg.

The value of BP Capital Fund Advisors LLC’s energy stock holdings increased by $55 million to $218 million. BP Capital Fund Advisors added stakes to eight energy-related companies at a time when oil prices were painstakingly low, and companies were taking rigs offline.

Texas-based BP Capital Fund Advisors additions included stakes in multiple pipeline companies in Q2 2016, including Williams Partners LP, Plains All American Pipeline LP, and Enbridge Energy Partners LP —while dumping shares of other energy stocks, including oilfield services giant Schlumberger Ltd, which managed to make the number-two top spot on CNN’s top ten list of “job-killing” companies earlier this year after cutting nearly 12,500 jobs in 2016.

In February, T. Boone Pickens had told Bloomberg Go that he sold all his oil-related holdings, and would re-enter when the time was right, stating that the market was oversupplied by 1 million to 1.5 million barrels per day. The announcement came only a bit over a month after a 13F filing that revealed he had taken on 55 new equity positions in the fourth quarter of 2015.

The United States Oil Fund LP ETF (NYSE:USO) rose $0.01 (+0.09%) to $10.77 per share in premarket trading Tuesday. The world’s largest ETF tied to the price of WTI crude oil has fallen 2.18% since the start of 2016, but has now bounced 39% off its yearly lows hit back in February.

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This article is brought to you courtesy of OilPrice.com.

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