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Analyst: ‘We like break-up’; avoid Big Oil

Smaller oil and integrated companies are likely to benefit big from the energy boom in the United States — at least more so than Big Oil, Paul Sankey of Deutsche Bank said Thursday.

"We like break-up. We like restructuring. We think companies should be smaller, more levered, quicker-moving, more exposed to U.S. growth," he said. "We love the U.S. growth theme. We think that's a unique theme globally. We want to be exposed to that without all the baggage that these guys carry."

Sankey made his comments after Exxon Mobil reported its lowest earnings per share since September 2010.

(Read more: Exxon posts big miss; Shell takes massive shale charge)

On CNBC's "Fast Money," Sankey said that he staying away.

"The change at the margin here is very negative. We've got down volumes and falling returns," he said. "And until those two things turn around, we're very much on the sidelines with Exxon."

Among the large oil producers, he preferred Chevron for its plan to invest in its businesses and grow 25 percent over the next three years.

(Read more: Trading the S&P 500 after it tops 1,700)

While "it's been tough to make money in oil, believe it or not," Peck said that he expected more action to unlock value, such as the case with Hess and Occidental.

"What we're looking for is big names with relatively low leverage that have managements out of favor, and basically there's several of them out there that could be potentially the next victims," he said.

"The tough one is, do you go after the really big guys? How do we get after Exxon or Shell in terms of trying get activists active there? And I think the sheer scale of them prevents that happening, and that's why they're less attractive to us."

By CNBC's Bruno J. Navarro. Follow him on Twitter @Bruno_J_Navarro.

Trader disclosure: On Aug. 1, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Joe Terranova is long GS; Joe Terranova is long MS; Joe Terranova is long VRTS; Joe Terranova is long OXY; Joe Terranova is long TRV; Joe Terranova is long EMC; Joe Terranova is long SJM; Joe Terranova is long TRIP; Joe Terranova is long SBUX; Joe Terranova is long URBN; Joe Terranova is long HOS; Joe Terranova is long AXP; Joe Terranova is long MS; Joe Terranova is long PXD; Joe Terranova is long EOG; Joe Terranova is long CXO; Joe Terranova is long LTD; Joe Terranova is long MINI S&P FUTURES; Joe Terranova is long CRUDE OIL FUTURES; Stephen Weiss is long AAMRQ; Stephen Weiss is long BAC; Stephen Weiss is long C; Stephen Weiss is long MOS; Stephen Weiss is short POT; Stephen Weiss is long M; Stephen Weiss is long LCC; Stephen Weiss is long SODA; Stephanie Link is long AAPL; Stephanie Link is long GS; Stephanie Link is long JPM; Stephanie Link is long WFC; Stephanie Link is long CSCO; Stephanie Link is long FB; Stephanie Link is long EBAY; Stephanie Link is long TKR; Stephanie Link is long DD; Josh Brown is long AAPL; Josh Brown is long DD; Josh Brown is long VGK; Josh Brown is long CVX; Paul Sankey is long CVX; Paul Sankey is long XOM.


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