Oil and gas in the Rockies

There has been a great amount of M & A activity in the Rockies (CO) oil & gas players over the last couple of years. This, I think, is going to continue, especially if Bush gets re-elected and opens up more areas for drilling. As a "green", I do not support the latter idea, but nevertheless see this as a chance for M&A speculation.

Here is a list of players in the Rockies area -

• Patina Oil & Gas (POG) : This Denver based company is a very stable, financially sound company. It pays a dividend too! The stock is fairly valued and hence a buy now may not result in a premium when the buyout occurs. But I have no doubt that a few companies out there are eyeing it. Will try to pick some if and when there is a pullback - chasing a stock is bad!
  
• Whiting Petroleum (WLL): Another Denver based player. Substantial insider buying recently at market prices - that makes it a good buy though the stock is not cheap. Definitely a buyout within a couple of years.
  
• Petroleum Development (PETD) : A richly valued stock with no support from insiders right now. Based in Virginia, but has assets in the Rockies. Wait for a big discount before buying.
  
• Anadarko Petroleum (APC) : Very richly valued, no insider buying. Risky buy right now. But again a very juicy target at lower prices.
  
• TransMontaigne (TMG) : A Denver based oil-services provider that has publicly announced that it is looking at strategic alternatives, usually implying a sale. Trading close to book value and has some insider buying.
  

From the above list, I own a few of TransMontaigne, and will be buying at current prices. I do plan to buy Patina and Whiting at lower than current prices, when I have some cash at my disposal.