Oil Tycoon Pickens’s Energy Holdings Gain as Crude Reboundsby
Oil tycoon T. Boone Pickens boosted the value of his energy holdings in the first quarter through moves that included buying and selling pipeline owners and adding stakes in some producers and service providers.
Energy stocks held by Dallas-based BP Capital Fund Advisors LLC climbed by $9.5 million, or 6 percent, to $163 million in the first three months of the year, according to data compiled by Bloomberg. BP Capital added stakes in 9 new energy companies, including Cheniere Energy Inc., which became the first company to export a cargo of liquefied natural gas from America’s shale formations in February.
West Texas Intermediate, which rose 3.5 percent in the first quarter, is still down by more than half since mid-2014. The downturn has forced producers to slash more than $100 billion in spending last year and chop budgets in North America. The industry has already had to cut more than 350,000 jobs globally to cope with the lower activity.
The fund also sold off positions in Basic Energy Services Inc., which offers hydraulic fracturing work on oil wells, and several midstream companies including Targa Resources Partners LP and Tallgrass Energy GP LP. Basic has fallen 91 percent since the start of the crude market downturn in mid-2014 as it competes in a North American market oversupplied with pressure-pumping gear.