T. Boone Pickens - His Life. His Legacy. T. Boone Pickens - His Life. His Legacy.
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When you look at my record over the last half of the 1900s, a pattern of on-the-mark calls emerges - sometimes my timing was off, but my intuition wasn't. Whether the issue was the overcapitalization of the oil industry, shareholder rights, open trade policy with Japan, or a national energy policy, we did make sense, even if prevailing wisdom didn't agree with us at the time. - T. Boone Pickens, The Luckiest Guy in the World

Horatio Alger Winner
Click the link above to view the Windows Media File of T. Boone Pickens' award. (total time: 3:42)
April 7, 2006

 

 

Ahead of His Time
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T. Boone PickensT. Boone Pickens’ native curiosity and his training as a geologist enable him to study a situation, analyze its possibilities, and then act upon that analysis. The 1951 Oklahoma State University geology graduate has used the same thorough approach no matter if he was sizing up the potential of an oil or gas field, gauging a company’s true worth, or working a commodities contract. When still early in his career he found that the stewards of mainstream corporate America would often fall into a pattern of “Ready, Aim, Aim,” instead of taking prudent action, he felt compelled to jump into the fray to maximize shareholder values.

During speeches in the early 1980s, Pickens began spreading a shareholder mantra focused on maximizing shareholder value virtually unheard of at the time but now an accepted part of American corporate culture. The main points: All shareholders should know that they, not management, are the true owners of the company; that shareholders need to inform management when they don’t feel that their interests and management’s interest coincide; that one of the biggest reasons for this difference is that most managements are not substantial shareholders — and, apparently, don’t want to be; and that each employee of a company should have the opportunity to become a shareholder, giving them a higher stake in the game.

“What we’re seeing is a transformation of Corporate America,” he told the Economic Club of Detroit in 1988. “The new focus is on results instead of size, on creating value rather than empires.”

After he left Mesa Petroleum in December 1996, Fortune magazine summarized what has become a concensus view of the Pickens legacy: “Boone's once revolutionary ideas [are] so completely taken for granted that they have become linchpins of the economy. Is there anybody anymore (except maybe in the labor movement) who doesn't accept the supremacy of the shareholder? Is there any CEO who doesn't understand that his primary job is to create wealth for his shareholders —and that to fail in that task will likely mean the loss of his own job?”

While a lot of milk was spilled and even more left on the porch during Pickens long and winding career, even he has to admit his business acumen and radar has uncanny accuracy if sometime out of sync with the times. “The world is generally resistant to change, especially for those who are benefiting from the status quo,” Pickens wrote in his autobiography. “ But the world also is resilient, and I firmly believe in the free enterprise system and the energy generated by the entrepreneurial spirit.”

Although he laughingly admits that friends have often quizzed him on why he is such a crusader, Pickens expresses great love for America’s free enterprise system, which, although flawed, provides such opportunities. “There isn't anything that the government must like better than for some guy who is willing to go out and put up his money to develop an idea,” he muses. “If the idea gels, jobs are created, taxes are paid, shareholders profit, and the economy prospers. If he loses, we're sorry about it, but the government doesn't step up and say, ‘Now, how much do you need for giving it a try, fella?’ That's why America is so far superior to the rest of the world’s economies.”

Pickens championed many issues that later became part of the corporate mainstream:

In the 1980s, he challenged Big Oil, and big American business in general, that it needed to drastically restructure to meet the times. A David versus Goliath bid for Gulf Oil by independent Mesa Petroleum and an investor group was the loudest shot of this campaign. Eventually, all of the Seven Sisters remade their families, benefiting their shareholders.

Long before the logic that physical fitness is an important part of the health of a company became universally accepted, Pickens shared his lifelong commitment to fitness with employees at Mesa in a grand way, implementing a companywide program rooted in economic sense and corporate well-being that earned Mesa the title of “The Most Physically Fit Company in America” in 1985.

Although he did not seek out the battle (it was brought to him), Pickens determined campaign to open up the Japanese markets to U.S. investors in the late 1980s and early 1990s forced a spotlight on the antiquated, closed structure of many foreign markets, and galvanized a rethinking of U.S. international investments.

Convinced that natural gas is a viable alternative vehicular fuel that can help the United States lessen its dependence on volatile foreign sources of oil, Pickens barnstormed the country advocating the merits of natural gas, and put his money where his mouth was. He formed Pickens Fuel Corp. in 1997, later reincorporated as Clean Energy and taken public in May 2007 (the eighth company that Pickens has helped go public during his career). The company now owns and operates natural gas fueling stations from British Columbia to the Mexican border.

Long a determined steward of his Texas Panhandle ranch land, Pickens implemented an exhaustive water system at his Mesa Vista Ranch in the Canadian River Valley in Texas and greatly reduced active cattle grazing, supporting a burgeoning quail habitat and creating a model for modern land caretaking.

In the late 1990s, Pickens determined that municipal entities would eventually gain access to great quantities of water beneath his Panhandle ranch, so he devised a plan, since joined by hundred of other landowners in the area. The Canadian River Municipal Water Authority, which supplies 11 Panhandle cities with a combined population of about 500,000, agreed to buy Pickens's water rights on 211,000 acres. In the process, the Pickens effort increased land prices in Roberts County, putting roughly $200 million into the Panhandle economy for local ranchers and landowners.

After spending more than 35 years traveling to Washington asking presidents and legislators to formulate a comprehensive energy plan for America while U.S. oil imports climbed from 24 percent to almost 70 percent, in July 2008 Pickens decided to take his case to the American public. He bankrolled a national ad and media blitz campaign outlining how the United States was exporting an alarming portion of its wealth to pay for its addiction to OPEC oil and detailing a Pickens Plan that offered alternative energy solutions. He conducted continuous town meetings across the country and solicited millions of "soldiers" for his plan on a Pickens Plan website.

 

 

 

 
 

© 2009-2012 BP Capital Inc. LEGAL

T. Boone Pickens is currently the chairman and CEO of BP Capital, which operates energy focused commodity and equity funds. He is also the largest shareholder in Clean Energy, the largest provider of vehicular natural gas (CNG and LNG) in North America with a broad customer base in the refuse, transit, shuttle, taxi, police, intrastate and interstate trucking, airport and municipal fleet markets.

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