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T. Boone Pickens

From Alfawiki
T. Boone Pickens
Born
Thomas Boone Pickens Jr.

(1928-05-22) 22 May 1928 (age 98)
Holdenville, Oklahoma, U.S.
Died11 September 2019(2019-09-11) (aged 91)
Occupation(s)Entrepreneur, financier
Years active1954–2018
Known forChairman of BP Capital Management; corporate takeovers and raids in the 1980s; philanthropy

Thomas Boone Pickens Jr. (May 22, 1928 – September 11, 2019) was a notable American entrepreneur and financier. He served as chairman of the hedge fund BP Capital Management and was a leading figure in corporate takeovers and raids during the 1980s. By November 2016, Pickens' net worth stood at $500 million, a figure that persisted until his passing despite his philanthropic contributions exceeding $1 billion.

Early life

Born in Holdenville, Oklahoma, Pickens was the son of Grace Marcaline (née Molonson) and Thomas Boone Sibley Pickens, who worked as a landman specializing in oil and mineral rights. During World War II, his mother oversaw local rationing efforts. Notably, Pickens was the first individual delivered via Caesarean section at the Holdenville hospital. His lineage includes politician Ezekiel Pickens, a former Lieutenant Governor of South Carolina.

At twelve years old, Pickens expanded his newspaper delivery route from 28 to 156 customers, demonstrating an early aptitude for rapid expansion through acquisition. Following the decline of Oklahoma's oil boom in the late 1930s, his family relocated to Amarillo, Texas. He initially attended Texas A&M University on a basketball scholarship but lost it after being cut from the team. Subsequently, he transferred to Oklahoma A&M, where he studied geology and joined the Sigma Alpha Epsilon fraternity. After graduating in 1951, he was employed by Phillips Petroleum until 1954. Two years later, having gained experience as a wildcatter, he founded the enterprise that evolved into Mesa Petroleum.

Career

By 1981, Mesa Petroleum had grown into one of the largest independent oil firms worldwide. Under Pickens’ leadership, Mesa executed its first significant acquisition by purchasing Hugoton Production Company—an entity thirty times its size. Thereafter, he concentrated on acquiring additional oil and gas companies through both friendly and hostile bids as well as mergers. Throughout the 1980s takeover wave, Pickens became well-known for attempting to acquire Cities Service, Gulf Oil, Phillips Petroleum, and Unocal. Mesa successfully acquired Pioneer Petroleum along with Tenneco’s mid-continent assets during this timeframe.

Time magazine placed Pickens on its cover in March 1985 following Mesa’s acquisition of Gulf Oil. He contemplated a presidential bid in 1988. Recognized as both a corporate raider and greenmailer, many of his takeover attempts were not completed but nonetheless generated significant returns for shareholders. Subsequent targets included Newmont, Diamond Shamrock, and Koito Manufacturing, all yielding considerable profits. Pickens played a key role in founding the United Shareholders Association (USA), which contributed to reforms in corporate governance such as the SEC's 1998 adoption of the one-share-one-vote policy.

Pickens also chaired West Texas State University’s Board of Regents and led an unsuccessful campaign against the Amarillo Globe-News over perceived biased coverage of his business activities. In 1989, he moved Mesa Petroleum’s headquarters to a Dallas suburb. Financial challenges emerged by 1996, resulting in Mesa’s sale to financier Richard Rainwater; Rainwater’s wife Darla Moore subsequently replaced Pickens at the company’s helm. In 1997, Mesa merged with Parker & Parsley Petroleum to form Pioneer Natural Resources.

That same year, Pickens established BP Capital Management (with BP representing Boone Pickens), which operated independently from BP plc. By 2006, he had earned $990 million from equity stakes alongside $120 million in management fees. In 2007, his earnings surged to $2.7 billion as BP Capital Equity Fund achieved a 24% growth after fees and its Commodity Fund rose by 40%, benefiting from investments in Suncor Energy, ExxonMobil, and Occidental Petroleum. Declining health prompted him to close BP Capital in 2018.

In recognition of his extensive contributions across five decades—including advancements in energy production encompassing renewables and philanthropic efforts in education, medical research, and wildlife preservation—Pickens was honored with The Franklin Institute’s Bower Award for Business Leadership in 2009.

Natural gas

In his 2008 publication, The First Billion Is the Hardest, Pickens initially endorsed the peak oil concept but later altered his stance after recognizing breakthroughs in horizontal drilling and hydraulic fracturing that made shale oil and gas accessible. He advocated increasing the number of nuclear power plants, expanding natural gas usage in transportation sectors, and supporting alternative energy sources. In 1997, Pickens established Pickens Fuel Corporation to promote natural gas as a more efficient fuel option for vehicles. The company was rebranded as Clean Energy Fuels Corporation in 2001 and now manages natural gas refueling stations throughout North America, stretching from British Columbia down to the Mexico–U.S. border.

Political activity

Since 1980, Pickens has contributed over $5 million to various political initiatives, including backing President George W. Bush’s campaigns at both the state and national levels. In 2004, he donated $2 million to the Swift Vets and POWs for Truth and $2.5 million to the advocacy organization Progress for America. He was one of 53 donors who gave the maximum $250,000 toward Bush's second inauguration in 2005.

On July 16, 2007, Pickens publicly declared his support for Rudy Giuliani’s presidential bid, commending Giuliani’s leadership experience and strategic vision. He also took a role on Giuliani’s presidential campaign executive committee.

Alongside his support for oil, Pickens was an advocate for solar energy and wind energy. In 2010, Senator John Kerry sought Pickens’s endorsement for energy and climate legislation aimed at promoting domestic natural gas as a substitute for imported oil in heavy-duty vehicles. Kerry incorporated aspects of what became known as "the Pickens Plan" into his bill, demonstrating bipartisan collaboration on energy issues.

Swift Boat challenge

On November 6, 2007, Pickens offered a $1 million reward to anyone who could disprove assertions made in political advertisements by the Swift Vets and POWs for Truth (SVPT), a group he had financially supported in 2004. John Kerry, who was targeted by these ads, accepted the challenge on November 16 with the condition that if he succeeded in disproving any SVPT claims, Pickens would donate the money to the Paralyzed Veterans of America. Later that day, Pickens narrowed the challenge specifically to SVPT advertisements and requested Kerry provide his Vietnam journal, complete military service records post-active duty, and all related media coverage. Additionally, Pickens challenged Kerry to contribute $1 million to the Congressional Medal of Honor Foundation if he failed to refute the ads. Kerry accused Pickens of altering the terms and stated he would counter the ads once Pickens met his conditions.

On June 22, 2008, a group of Vietnam veterans who had served alongside Kerry submitted a comprehensive rebuttal supported by military documentation addressing multiple Swift Boat allegations. Despite this, Pickens dismissed their response as inadequate to invalidate the ads’ claims.

Lobbying efforts to stop horse slaughter

Pickens actively campaigned for the American Horse Slaughter Prevention Act (HR 503), which sought to ban horse slaughtering practices as well as the trading and transportation of horses intended for human consumption.

Attempt to sell natural gas with a California ballot initiative

In November 2008, California voters decisively turned down Proposition 10, with approximately 60% opposing and 40% in favor. This initiative, chiefly supported by Pickens' Clean Energy Fuels Corporation—a company specializing in natural gas fueling infrastructure—sought authorization for $5 billion in general obligation bonds (amounting to $9.8 billion including interest) aimed at providing rebates and incentives for alternative energy. The allocation of these funds was expected to disproportionately advantage Pickens' enterprise over other clean fuel technologies.

Philanthropy

Throughout his lifetime, Pickens contributed more than $700 million to charitable causes, nearly $500 million of which was allocated to Oklahoma State University. He was also among the signatories of The Giving Pledge, committing to donate at least half of his fortune to philanthropic endeavors.

Contributions to Oklahoma State University

Pickens emerged as a principal benefactor of his alma mater, Oklahoma State University (OSU), with total donations exceeding $1 billion—the largest amount ever given to a university athletic program. Over $265 million of this was dedicated specifically to athletic initiatives. His support extended beyond sports, including a $1 million endowment for the Boone Pickens School of Geology.

On December 30, 2005, Pickens made a $165 million contribution to OSU, which was invested through BP Capital Management, his personal hedge fund. He waived any management fees on these assets, allowing all generated profits to be reinvested and thereby increase the overall gift’s value. The funds were intended for enhancements to the football stadium and the development of an athletic village; however, the use of eminent domain for property acquisition stirred public debate. This followed a prior $70 million donation made in 2003 via O.S.U. Cowboy Golf, Inc.

In 2007, OSU’s Board of Regents approved transferring $28 million from the OSU Foundation into BP Capital Management, adding to an existing $277 million investment managed by Pickens, who again waived fees on these funds.

On May 21, 2008, Pickens pledged an additional $100 million dedicated to academic programs at OSU, which was matched by the state government of Oklahoma.

Humanitarian Contributions

Pickens and employees at BP Capital LLC collectively donated $7 million toward relief efforts following Hurricane Katrina. The Chronicle of Philanthropy recognized him as one of the leading charitable donors in both 2005 and 2006. Over his career, he gave close to half a billion dollars to various philanthropic initiatives. In response to Hurricane Katrina in 2005, Pickens and then-wife Madeleine arranged charter flights to rescue dogs stranded by flooding in New Orleans. On November 6, 2006, he contributed $5 million to establish the T. Boone Pickens Institute of Health Sciences-Dallas Center at Texas Woman's University.

On May 16, 2007, he pledged $100 million toward health care institutions within the University of Texas system—specifically UT Southwestern Medical Center and M.D. Anderson Cancer Center—with the condition that the donation would grow to $1 billion over a span of 25 years before being distributed. In that same year, he gave $3.5 million for the construction of a training center and guest lodge at Happy Hill Farm Academy and provided $6 million for rebuilding Jubilee Park in Dallas.

On June 20, 2008, Pickens donated $25 million to support the Faculty of Medicine at the University of Calgary. Later that year, he gave $5 million to the Downtown Dallas YMCA, which was subsequently renamed the "T. Boone Pickens YMCA" in recognition of his support aimed at fostering community wellness and fitness. In December 2008, he received the title "Texan of the Year" from the Texas Legislative Conference.

In 2010, Pickens was honored with the "Effecting Change" award by 100 Women in Hedge Funds. Additionally, he donated over $11 million to The University of Texas at Dallas Center for Brain Health to advance education and research in neuroscience. This funding established the "T. Boone Pickens Distinguished Scientist" chair held by Dr. Ian Robertson, Ph.D.

Honors and awards

In 1984, Pickens was honored with the Golden Plate Award by the American Academy of Achievement. He gained induction into the Oklahoma Hall of Fame in 2003. Later, in May 2012, the Hugh O'Brian Youth Leadership Foundation presented him with the Albert Schweitzer Leadership Award, recognizing his lifelong accomplishments and exemplary leadership.

Alternative energy

On September 19, 2007, Pickens predicted that oil prices might reach $100 per barrel, while his enterprise concentrated on expanding the use of natural gas for transportation. The initial $100 oil futures contract was traded on NYMEX on January 2, 2008. Nevertheless, by November 21, 2008, oil prices had declined below $50 amid the global financial downturn.

Wind power

Mesa Power, owned by Pickens, submitted an application on August 16, 2007, to install up to four gigawatts of electricity generation capacity in Texas through approximately 2,700 turbines spread over roughly 200,000 acres in Roberts County and surrounding regions. By January 2008, plans were underway to acquire between 1,700 and 2,000 turbines at an estimated cost of $200–$300 million; however, partnerships and financing arrangements had yet to be secured. Similar wind energy projects were anticipated for the Texas Panhandle and areas along the Canada–US border.

On May 15, 2008, Mesa Power placed an order for 667 GE turbines rated at 1.5 MW each, scheduled for delivery during 2010–2011. Texas regulators approved $4.98 billion in transmission infrastructure funding in July 2008 to link Panhandle wind farms to the electrical grid, supporting legislation passed in 2005 aimed at encouraging wind energy development.

By July 2009, Pickens deferred progress on the wind farm initiative due to insufficient transmission capacity and financial obstacles but maintained his commitment to utilizing the turbines already ordered for future wind projects. By December 2010, he redirected his focus entirely toward natural gas as low prices diminished wind power's competitiveness for utility companies.

The Pickens Plan

On July 8, 2008, Pickens unveiled the Pickens Plan, a comprehensive energy strategy designed to decrease America's reliance on imported oil from OPEC. The proposal centers on transitioning commercial transportation from OPEC diesel fuel to natural gas and advocates for expanding wind energy across the central U.S. "wind corridor," stretching from Texas through the Great Plains up to the Canada–US border. Pickens emphasized job creation and economic growth potential within this region; however, implementation depends on constructing new transmission lines, which have encountered resistance.

Pickens invested $58 million into a wide-reaching media campaign supporting the plan that incorporated traditional media as well as digital platforms such as YouTube and Facebook. Television advertisements were developed by Democratic strategist Joe Slade White. The plan attracted backing from environmental advocates including Carl Pope of the Sierra Club. Its natural gas components influenced legislative proposals like the NAT GAS Act (H.R. 1835 and S. 1408) and the American Power Act.

At a February 21, 2013 event alongside New York City Mayor Michael Bloomberg, Pickens endorsed Clean Energy Fuels while introducing Neapolitan Express—a company launching an environmentally friendly food truck powered by compressed natural gas that cuts greenhouse gas emissions by approximately 75% compared to standard trucks.

Personal life and death

In 1949, Pickens wed Lynn O'Brien, and together they had four children: Deborah, Michael O., Thomas B. III, and Pam. Their marriage ended in divorce in 1971. The following year, he married Beatrice "Bea" Carr Stuart and legally adopted her daughter, Elizabeth "Liz" Cordia; the couple did not have children together. Later marriages included unions with Nelda Cain (2000–2004), Madeleine Paulson (2005–2012), who was the widow of Gulfstream Aerospace founder Allen E. Paulson, and Toni Chapman Brinker (married in 2014 and divorced in 2017). None of these subsequent marriages resulted in offspring.

Pickens fathered four biological children and one adopted daughter, and as of 2007, he had twelve grandchildren. In 2013, his grandson Thomas "Ty" Boone Pickens IV tragically passed away due to a heroin overdose; Ty was enrolled at Texas Christian University at the time.

In 2009, Pickens became involved in a dispute after removing a driveway slab from his grandmother’s former residence in Holdenville, Oklahoma—a property owned by another party. The slab was returned, and a court decision in 2010 upheld the ownership rights of the current proprietor.

Pickens passed away on September 11, 2019, at his home in Dallas following a period of declining health that included strokes and a fall sustained in 2017. The specific cause of death was not publicly disclosed. On September 18, 2019, his foundation issued "A final message from T. Boone Pickens," which reflected on his life achievements and enduring impact.

Books

  • Pickens, T. Boone, The First Billion Is the Hardest: Reflections on a Life of Comebacks and America's Energy Future, 2008, .
  • Pickens, Boone, The Luckiest Guy in the World, 2001, .
  • Pickens, Boone, Boone, 1987, .

External links

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