Calpine

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

Last up is Calpine ( CPN), another firm that's tangled in the web of unrequited M&A within BP Capital's portfolio. Back in 2008, NRG Energy made an unsolicited bid to buy CPN for $22.70 per share, an offer that's probably looking a whole lot more attractive now that Calpine sells for 2012 prices in the low $16 range. Calpine is another power generation firm, albeit one that jives more directly with the Pickens Plan than most - it operates modern natural gas-powered generation turbines with 28 GW of capacity between them.

Calpine's exposure to natural gas-fired plants means that the firm benefits more than most when natgas is sitting at low levels. Unfortunately for Calpine, low nat gas prices tend to go hand-in-hand with low wholesale power prices, which means that the firm's margins haven't expanded as many investors had hoped. If the company can get a handle on some of its costs - namely its debt load - it'll look like a better bet for 2012.

BP Capital bought 290,000 shares of CPN last quarter, bringing on a $5 million stake in the company.

To see the rest of T. Boone Pickens' plays check out the T. Boone Pickens - BP Capital Portfolio on Stockpickr.

-- Written by Jonas Elmerraji in Baltimore.

RELATED LINKS:



Follow Stockpickr on Twitter and become a fan on Facebook.
At the time of publication, author had no positions in stocks mentioned.

Jonas Elmerraji is the editor and portfolio manager of the Rhino Stock Report, a free investment advisory that returned 15% in 2008. He is a contributor to numerous financial outlets, including Forbes and Investopedia, and has been featured in Investor's Business Daily, in Consumer's Digest and on MSNBC.com.

If you liked this article you might like

Finding Bullish and Bearish Market Reversals

Parsley Energy Picks Up Permian Assets From Apache, Others: Source

'Mad Money' Lightning Round: Vodafone, Encana, Arconic, AdvanSix

Retail, Politics and Bonds Signal Trend Changes: Cramer's 'Mad Money' Recap (Thursday 1/5/17)

Encana Shares Climb Thursday on Surprise Beat