In a post earlier this month I mentioned how all things being equal it might make more sense to hedge towards smaller players in both the oil/natural gas exploration and production. [Jun 18: Will Encore Acquisition be Bought Out?]
So all things being equal, we might develop a thesis here, that it might be sensible to build in exposure in smaller E&P companies with the carrot of potential takeouts. The typical market cap of the names above is $1 to $3 Billion.
Many of the (smaller) names mentioned in that post have been absolutely ripping it up the past few weeks, while their big brothers have been going upward slowly or sideways.
Potential takeover targets include Arena Resources (ARD), Brigham Exploration Co (BEXP), Berry Petroleum Co (BRY), Concho Resources Inc (CXO) and Rex Energy Corp (REXX), Tudor Pickering, said.
However, I am going to focus on Encore Acquisitio...
$70.99 (06/25/08)
