Better Energy Investments Than Exxon?

Fund manager likes smaller companies that stay closer to home and don't rely on acquisitions for growth.

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Exxon may be gushing profits, but Jerry Jordan, manager of the Jordan Opportunity fund, would rather bet on oil companies that can increase their annual production at 8 percent to 15 percent without making acquisitions. "Exxon and Chevron can't do that," he says.

On the other hand, Apache, Devon Energy, EOG Resources, and Occidental Petroleum "all can—and are," Jordan says. "In addition, these companies are legitimate takeover targets, and they focus on North American reserves, so there are no risks of government intervention or rebels killing workers."