From Yahoo Finance: 2025-05-15 09:55:00

A third of mid- and small-cap US oil and gas stocks are trading below book value, the highest level since the pandemic. Energy sector is down 14% since Trump’s tariff announcement. Oil prices tumble due to trade war fears and increased OPEC production, with some stocks trading below asset value.

33% of Russell 3000 energy stocks are below book value, up to 40% before US-China trade truce. Canadian oil and gas stocks also undervalued. Investors like Cole Smead see potential for returns to book value or more. Some companies repurchasing shares at lower prices, viewing buybacks as smart capital allocation.

Debate on valuing energy stocks – BMO Capital Markets analyst prefers cash flow, Ebitda, and reserve values over book value. Uncertainty creates discomfort, but may be the best time to invest in the sector. Chevron cutting buybacks due to crude drop. Energy sector historically thrives in uncomfortable times.

Read more: Energy Stocks Priced Below Book Value