Bloomberg Gadfly points out that some large oil companies are trapped between pure-play E&Ps and the absolute largest oil companies, offering up a rather unappetizing opportunity for investors.

 

Companies like Anadarko (NYSE: APC) are too large to offer the huge upside potential that small shale drillers have, but they are also not as safe as the likes of ExxonMobil (NYSE: XOM), leaving them with a tricky investment case.

As such, the share price of Anadarko has sagged, and in fact, the company just decided buy back shares as a way of appeasing restless investors.

Bloomberg Gadfly suggests Anadarko’s predicament is illustrative of a broader problem with oil companies of similar size, who are posting disappointing cash flow figures as they drill more and grow larger.