Given his belief in $100 per barrel oil, Pickens is also looking for energy alternatives so he has invested in several natural gas companies. His largest position, worth $139 million, is Suncor Energy (SU).
Suncor's two main segments are oil sands, which recover oil from places where it's typically more expensive extract oil, like the tar sands of Canada, and natural gas. Suncor acquires, develops, and produces natural gas from reserves in western Canada.
Suncor trades at ten times cash flows but we don't yet know the full potential of this company. If and when oil hits $80 per barrel, oil companies will have to increasingly looking towards natural gas reserves and the Canadian tar sands for oil. Pickens is making a huge bet that this is the future of energy production. Morgan Stanley has Suncor in its model portfolio (see link to the right) and a $110 price-target on the stock.