Although oil prices have taken a hit and natural gas prices have been in a downward trend this year, which has made a negative impact on energy stocks, it doesn’t mean that these companies are not going to be profitable in the future. There are energy stocks that have been undervalued and now deserve a closer look. Below we complied a list of six must own energy stocks from T. Boone Pickens’ portfolio:
Chesapeake Energy Corporation (CHK): Chesapeake Energy Corporation engages in the acquisition, development, exploration, and production of natural gas and oil properties in the United States. It also provides marketing and other midstream services. It has a market cap of $17.34 billion with a price to earning ratio of 18.18. Its earnings per share is $1.50. Its price/earnings-to-growth ratio is 0.86. Quarterly earnings growth is 100%. The stock has traded in a 52-week range of between $20.97 and $35.95. The stock is currently trading in the middle of its trading range at $27.30. The stock has a forward P/E of 10.07 and pays a 1.30% dividend.
Noble Corporation (NE): Noble Corporation operates as an offshore drilling contractor for the oil and gas industry worldwide. It involves in the contract drilling of oil and gas wells. It has a market cap of $7.88 billion with a price to earning ratio of 27.09. Its earnings per share is $1.15. Its price/earnings-to-growth ratio is 1.73. Quarterly earnings growth is -75.29%. Its 52-week closing range is $27.33 to $46.72. The stock is currently trading near $31.21. The stock has a forward P/E of 7.90 and pays a 1.70% dividend.
Chevron Corporation (CVX): Chevron Corporation, through its subsidiaries, engages in petroleum, chemicals, mining, power generation, and energy operations worldwide. It has a market cap of $197.51 billion with a price to earning ratio of 8.61. Its earnings per share is $11.45. Its price/earnings-to-growth ratio is 1.61. Quarterly earnings growth is 42.90%. The stock is currently trading near $98.61 and its 52-week closing range is $80.41 to $109.94. The stock has a forward P/E of 7.53 and pays a 3.10% dividend.
Plains Exploration & Production (PXP): Plains Exploration & Production Company, an independent oil and gas company, primarily engages in acquiring, developing, exploring, and producing oil and gas in California, Texas, and Louisiana. It has a market cap of $3.84 billion with a price to earning ratio of 19.75. Its earnings per share is $1.38. Its price/earnings-to-growth ratio is 0.49. Quarterly earnings growth is 175.20%. It has traded in a 52-week range of between $20.25 and $27.81. The stock is currently trading at $27.20 towards the top of its 52-week range. The stock has a forward P/E of 9.41.
McMoRan Exploration Co (MMR): McMoRan Exploration Co., through its subsidiary, McMoRan Oil & Gas LLC, engages in the exploration, development, and production of oil and natural gas offshore in the Gulf of Mexico and onshore in the Gulf Coast area of the United States. It also involves in the incorporation of 3-D seismic interpretation, offshore drilling to total depths, and horizontal drilling. It has a market cap of $1.83 billion. Its earnings per share is -$1.46. Its price/earnings-to-growth ratio is -2.53. Quarterly revenue growth is 46.50%. The stock is currently trading near $11.53 and its 52-week closing range is $8.25 to $19.26. Richard Chilton had nearly $50 million invested in MMR at the end of June.
SandRidge Energy, Inc. (SD): SandRidge Energy, Inc., together with its subsidiaries, operates as an independent natural gas and oil company in the United States. The company engages in the exploration, development, and production of oil and gas properties. It has a market cap of $2.75 billion. Its earnings per share is $-0.07. Its price/earnings-to-growth ratio is 10.92. Quarterly earnings growth is 292.40%. The stock is currently trading near $6.89 and its 52-week closing range is $4.55 to $13.34. The stock has a forward P/E of 20.88.
