Anadarko Petroleum Corp (APC)

Anadarko is one of the industry leaders in natural gas, which has recently broken out over $10 after languishing in oil's shadow for far too long. Nat gas will continue to catch up to crude, and APC will continue to profit handsomely for som time to come.

Anadarko Petroleum is an energy natural resource and production company often closely associated with T. Boone Pickens, a very large doner to Oklahoma State University.

The stock is slightly undervalued in my opinion trading around $58 per share. In my opinion the shares of APC have an Intrinsic Value of $67-$69. The company's current P/E Ratio is about 7 implying a rate of return of about 14.3%. I do not own the shares because my minimum projected rate of return to buy a stock is about 25% or a P/E of 4.0.

Nontheless, these shares are a BUY during a periiod of slow economic growth, and rising inflation and a BEAR Market.

Kahuna,CFA

Once APC gets the debt down, it will be in the same situation KMG was in prior to the APC buyout of KMG...undervalued. The natural gas reserves in the Rockies are like an ATM and the stock market just hasn't given the stock its due value. There are a lot of reserves proven in the ground that are not refelected in the stock price. Once the debt is down, a major like Shell, who also needs these domestic gas reserves will make a run for APC and pay a premium to get it.

Andarko gained 24% during early 2006 and has a yeild of 0.686 %. I believe their sector will do well over the next year and they seem well positioned to outperform the S&P 500.

Market Cap >=10b
P/E <=10
Return on Equity >=15
Beta <=1.00
Earnings Growth Est Next 5 Year >=10
Price Book Ratio <=2
Operating Cash Flow >=100m
Last Price Up % vs. 50 Day Moving Avg >=0.25

Again...this looks WAY undervalued.

Anadarko has great assets in the Rocky Mountains and Deepwater GOM and is making a big bet on strong natural gas prices for the foreseeable future. They are aggressively paying down debt with money from asset divestitures and high grading their portfolio in the process. The market has really beat them down compared to their peer companies in the E&P industry and the sector as a whole has taken a beating. Over the next couple of years they should outperform the market and their peers.

Reserves are reserves are reserves... "this company has lots of O&G in the piggybank" If you're Bullish on energy $ longterm. Two models at play: Reserves = future $, or Reserves = buyout. Both win-win for investors.

This is an oil play stock with majority of its holding in the US/North America/Alaska/Gulf of Mexico. Thus less dependent on Middle East.

Quite simply the best explorer in the Gulf of Mexico. Management is aggressive without taking on huge risks. As yet, the Street is not giving them enough credit for cost-cutting.

Hackett is one of the most active / ruthless adherents to portfolio management. This tactic can work in any oil price environment since asset prices that need to feed the beast go up and down in relation to it. Finally the very deep US inventory they bought from KMG, Western Gas etc will enable things to keep going. If you look at how Hackett cleaned up the portfolio when he first arrived I have little fear that he is a proponent of 'grow at all costs'...unlike some other people in the business. Finally I think that when the mega-majors get desperate for reserves replacement and they look at Anadarko (as they inevitably must) they will be made to pay a fair price, as Hackett did at Ocean.

Increasing demand for oil worldwide is going to continue and Anadarko is well positioned with good reserve fields. Stock is cheap due to debt levels from acquisitions, if Anadarko maintains good cash flow levels and proves it can pair down debt this company will shoot up from its current lows.

Business plan to reduce debt and gain market share through production deals seem like a winner over the dwindling energy resources for the future. They are certainly climbing to the top of the heap in what they do best.

Happy to have gotten in in the real world at 74 yesterday. Happy to rate it here today. Long term alternative energy story in nat gas that is not getting a lot of attention. It's cleaner and cheaper and it's in abundance in the US and this company just finished a bang up quarter and the jump it got has stuck nicely. As Dennis Gartman likes to say the trend is from bottom left to upper right.

I am not sure on the timing or catalyst that will send Oil and gas higher and higher. I do feel that it will happen because of limited supply, growing demand and political turmoil in many regions of production.

Icahn

Oil development company with addition of deep water oil service company. Debt is being reduced by sale of assets. Profitable operations even with exclusion of asset sales. Earnings multiple is now under 4. This company is undervalued.

Fundamentals and momentum ; energy is hot right now ; favorable StockScouter rating

Oil set to rebound.

Regardless of the outcome of the election, Democrats and republicans will continue to feel pressure from the American people to do something about high oil prices and reduce our dependence on foreign oil.