Five Energy ETFs Loaded With Takeover Targets

FCG
): We mentioned FCG last week as a play for the rather persistent rumor that Range Resources (NYSE:
RRC
) is a takeover target, but when you look at the ETF's lineup, there are probably three or four other holdings that are credible candidates to be acquired. Cabot Oil & Gas (NYSE:
COG
) and EOG Resources (NYSE:
EOG
) among them. PowerShares S&P Small-Cap Energy ETF (Nasdaq:
PSCE
): Once upon a time, Brigham Exploration (Nasdaq:
BEXP
) was a top holding in PSCE. The ETF rebalanced and Brigham moved out because of its market cap no longer fit the small-cap designation, but that didn't stop Statoil (NYSE:
STO
) from acquiring Brigham for a nice premium. Even with Brigham gone, PSCE still has a few potential takeover candidates. Market Vectors Coal ETF (NYSE:
KOL
): The severely depressed valuation on Walter Energy (NYSE:
WLT
) and an activist shareholder have KOL at the forefront of energy sector takeover talk. Arguably, Alpha Natural Resources (NYSE:
ANR
) and Patriot Coal (NYSE:
PCX
) could find themselves to be the focus of same takeover chatter at some point. iShares S&P Global Infrastructure Index Fund (NYSE:
IGF
): The iShares S&P Global Infrastructure Index Fund isn't a pure-play energy ETF, but we like it as a takeover play because it's almost 20% allocation to the energy sector is devoted primarily to pipeline operators and that's the epicenter of today's M&A fever. Williams (NYSE:
WMB
) could be in play in the future if pipeline consolidation continues and that stock is featured in IGF. iShares Dow Jones U.S. Oil Equipment Index Fund (NYSE:
IEZ
): One member of the iShares Dow Jones U.S. Oil Equipment Index Fund, Complete Production (NYSE:
CPX
) recently agreed to be acquired by Superior Energy (NYSE:
SPN
), another IEZ holding. The oil services sector is primed for consolidation and IEZ is chock full of both buyers and targets.
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