Saturday, June 24, 2006

Energize Your Portfolio

With the Anadarko's recent acquisitions of Kerr McGee (KMG) and Western Gas (WGR) it is time to look at energy stocks again. Conoco Phillips (COP) has a compelling valuation but with a $100 billion dollar market cap it will be hard for it to be considered an acquisition target. I own some shares of Chesapeake Energy (CHK) which trades at 8 times earnings and only has a market cap of 11.7 billion. I also think Marathon Oil (MRO) looks attractive at 8 times earnings and yields over 2%.

Energy Stocks Under $16 Billion With A P/E Under 9
XTO Energy (XTO)
Chesapeake Energy (CHK)
Noble Energy (NBL)
Cimarex (XEC)
Pogo Producing (PPP)


Blogger Market Participant said...

I'm inclined to that the best way to get exposure to the energy sector is by an ETF. I think PXE and IGE are good choices for that.

6/25/2006 9:51 AM  
Blogger jwu said...

wow MRO is hott

7/01/2006 5:17 PM  
Blogger Big Ben said...

Should have went long MRO when I made the post. It was at $77. XOM could buy MRO

7/01/2006 6:05 PM  
Blogger Grant said...

What are your thoughts on Chesapeake since they've issued more shares into the market?

I had been bullish on CHK, even in a low spot in natural gas futures, but when they issued shares in part to pay off debt, I turned the tables.

Still like CHK?

Nice post, Grant.

7/09/2006 10:06 AM  

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