Billionaire Clint Carlson Makes Big Moves In These 4 Stocks

In a separate 13G filing, the Dallas-based fund reported owning 1.78 million shares of Exterran Corp (NYSE:EXTN), representing 5.05% of the company’s outstanding common stock. On November 3, Archrock Inc. (NYSE:AROC) (called Exterran Holdings Inc. prior to this date) completed the spin-off of its international contract operations, international aftermarket services, and global fabrication businesses into an independent company named Exterran Corporation. It should be mentioned that Carlson Capital owned 6.64 million shares of Exterran Holdings as of September 30. Most importantly, each Archrock shareholder, including Carlson Capital, received one share of Exterran Corp (NYSE:EXTN) for every two shares of Archrock’s common stock owned on November 3. Therefore, Clint Carlson’s investment firm, which received roughly 3.32 million shares of Exterran Corporation (assuming Carlson Capital still owned 6.64 million shares of Exterran Holdings at the beginning of November), nearly halved its stake in the newly-created company since early November. Meanwhile, the freshly-formed company represents a market leader in the provision of compression, production and processing products and services that serve the oil and natural gas industry, so its financial performance is highly dependent on the level of energy industry spending. Its shares have declined by nearly 19% since the beginning of November, presumably because of the sustained decline in crude oil prices and the spending cuts by players in the industry as a result.

Moving on to the next 13G filing, Carlson Capital disclosed an ownership stake of 9.40 million shares in Dynegy Inc. (NYSE:DYN), which accounts for 7.79% of the company’s shares. This marks an increase of 5.17 million shares from the positon revealed through the fund’s 13F filing for the third quarter. The shares of the independent power producer have dropped by 60% over the past year, mainly owing to the depressed gas prices. Despite that, Dynegy Inc. (NYSE:DYN) reported revenue of $2.85 billion for the nine months that ended September 30, up by $956 million year-over-year. That substantial increase amid a challenging business environment was mainly attributable to the company’s freshly-acquired plants. At the same time, the mild temperatures and increased precipitation levels have put significant pressure on the demand for Dynegy’s output in its generation areas, which led to lower volumes and prices compared to 2014. In December, SunTrust Robinson Humphrey reiterated its ‘Neutral’ rating on the stock and cut its price target on it to $11 from $15, citing continued pressure on forward gas prices. The number of smart money investors with stakes in the company declined to 40 from 52 during the third quarter, but the bullish hedgies still amassed 44.30% of the company’s outstanding shares. Jamie Zimmerman’s Litespeed Management reported owning 4.66 million shares of Dynegy Inc. (NYSE:DYN) through its 13F for the July-to-September period.