Texas-based oil and gas exploration and production firm Anadarko Petroleum (APC) is another name that made the Rocket Stock cut this week. Anadarko is one of the biggest independent E&P firms, with proved reserves of 2.5 billion barrels of oil equivalent.
As a pure-play E&P firm, Anadarko doesn't have any of the other secondary businesses (like refining or retailing) that smooth out sales when oil prices are low, but also smash margins lower when crude prices are high. As oil creeps back up this summer, investors should see that as a good thing.Anadarko does have diversification in where it drills -- in addition to projects in the U.S., APC owns offshore sites in places like the Gulf of Mexico and Cote d'Ivoire. The firm's mix of oil and gas is also solid. Anadarko's mix is nearly 50/50, albeit slightly skewed towards gas. That gives the firm the sort of positioning that supermajors have had to pay out big bucks to achieve on their own, and a big bull case for those who see higher nat gas prices on the horizon. >>7 Underrated Oil and Gas Stocks Ripe for Gains While the E&P business is capital-intense, Anadarko currently has a solid balance sheet with ample available liquidity. As speculation heightens over the next round of inflationary stimulus, exposure to commodity plays like APC is going to be valuable indeed.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV