Boone Pickens and Carl Icahn: Oil Bets

Boone Pickens and Carl Icahn: Oil Bets
Chart via S&P Capital IQ

As a follow up to the Pickens and Icahn podcast, it’s no surprise that both Pickens and Icahn are bullish on oil. Pickens drinks oil for breakfast and Icahn has become a commodity expert these days with a slew of oil/commodity holdings.

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Pleasantries aside, both talked about the potential for $70 a barrel oil in the interim. The way things are looking right now, that’s a remote possibility. But for investors with a long enough horizon, Icahn has oil plays for you. And he has a long horizon, managing his own money these days with no pressure from outside shareholders.

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Icahn’s top oil holdings are Chesapeake Energy (CHK) and Transocean (RIG), both with hefty debt loads that make them questionable investments if you think there’s a remote change oil stays lower for longer.

Then there are Icahn’s bets on Cheniere Energy (LNG) and Freeport-McMoRan (FCX), although not direct oil and gas bets, are more interesting than a CHK or RIG. It’s also worth noting that Icahn has a much larger part of his portfolio invested in LNG (5th largest holding).

Then there’s Pickens top oil plays, Pioneer (PXD), Exxon Mobil (XOM) and Anadarko (APC) – the top three holdings in his BP Capital and all are said to be solid plays even if oil stays lower for longer. XOM is offering a 3.8% dividend yield, the highest we’ve seen in almost two decades.

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