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.