Anadarko Petroleum Corp (NYSE:APC)

Profit

limited natural gas supply

Anadarko enjoys one of the best positions in the deepwater Gulf of Mexico, both with regard to leasehold and to the all-important rig contracts.

has huge potential reserves compared to its market cap. APC will be a interesting story over the next year or so as it sells various assets to reduce debt.

This company is well positioned for growth; they control many of the oil rigs for drilling and have future options on buying more

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.

Just added because they are drilling on my land. Don't know much about on the street side but royalties.

Steady growth, currently undervalued stock.

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.

another cramer oil pick.

below 50..have to be a buyer!

Innovative company which seems on right track

High demand for oil won't go away. APC's sources are primarily North America and less subject to political disruption.

it will be atleast 2 years before alternatives and concervation will lower the price of oil.

Oil and Gas Operations

Above average fundamentals should translate to above average performance. I like the 5.78 P/E ratio at the time of this pick.

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.

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.

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.