“Takeover talk, not just the end-of-the-day rally in futures, is moving oil and gas. The guys on "Fast Money" flagged the voracious XTO Energy (XTO) out-of-the-money call-buying, and I have to tell you it sure makes sense to expect some takeovers to occur. XTO is a primo growth company, down 23 straight points in about a month, and it makes no sense to me, given that natural gas will be hard pressed to go below $8 -- it hasn't been able to crack it yet, give or take a few pennies. I have been feeling that takeovers are in the works ever since I talked to Jim Hackett at Anadarko (APC) earlier this week. He's laughing at the valuations in his industry vs. the finds they have been discovering and the actual higher prices he is getting for natural gas from industrial clients than the futures would indicate. Let's face it, as much as people want to trade these stocks tick for tick with the futures -- and I think nat gas is settling in as the seasonal period ends and it comes in about as cheap as coal -- the real story here is growth. They are actually growing. They are discovering like mad. Meanwhile what do the majors do? They buy back stock. Think about the illogic of this. They are buying back stock in companies that are not growing their reserves, and paying high prices to do so. Meanwhile, they can buy any of these independents down here and fill their pipes while lowering the amount of exposure they have to refining, the bane of all oil existence now. How can it be possible that ChevronTexaco (CVX) has not thought of this? How is it not possible that Devon (DVN) isn't thinking of buying one of the smaller players? There is not a doubt in my mind that that these companies are worth a lot more to others, especially the integrateds, than they are themselves. Frankly, given the static nature of the nat gas futures, down from $13.50 to $8, what the heck other explanation is there for the runs in these stocks? As far as the majors, I reiterate that I don't like them. They have to be acquirers, not sellers. The non-refinery oil and gas plays are where the action is. Perhaps we will get another chance to get in, as I expect inventories to continue to build when they are reported tomorrow -- the weather is too nice. I was too bearish on the majors earlier, but only because I like these darned independents so much, not just because of earnings and growth but because what the option market is signaling in a big way what will happen here in the very near future.

From a recent Mad Money show: "Statoil is running out of oil and you want to stay away from that one. They're losing oil and you'll be losing money if you own it."

From a recent Mad Money show: "This company makes a lot of the gases needed to get oil out of the ground. That's a fabulous business and is not levered to the price of oil."

From a recent Mad Money show: "I don't like them as much as Laboratory Corp. of America Holding (LH), which has a lot more momentum. I'd swap out of yours for mine."

From a recent Mad Money show: "I have liked this one for 35 points now. I want you to take some off the table. I like it, but it's too hot."

From a recent Mad Money show: "I think that one is a sell, sell, sell. That's another train wreck waiting to happen. I can't say anything positive there."

From a recent Mad Money show: "I think the money's been made and we need to be careful."

From a recent Mad Money show: "Their CEO has delivered two years of great quarters, and I think this one will be good, but I hate tech right now."