This week saw the first multi-billion dollar merger involving a U.S. oil company since oil prices plunged when Noble Energy (NYSE:NBL) agreed to acquire Rosetta Resources (UNKNOWN:ROSE.DL) for $3.9 billion. That deal also set the bar for future deals as it set a value for U.S. oil assets. This is because Noble Energy agreed to pay an Enterprise Value-to-Proved Reserves of $13.65 per barrel of oil equivalent for Rosetta's oil and gas reserves. That was a 28% premium to the market's value for those reserves and could be a wakeup call to oil companies sitting on severely undervalued oil reserves.
Using data from S&P Capital IQ I've uncovered 10 oil stocks with the lowest Enterprise Value-to-Proved Oil Reserves. The following slideshow details these 10 oil stocks, which should listen up if a suitor comes calling as the market is currently undervaluing their oil reserves relative to the rest of the oil market.
Matt DiLallo owns shares of ConocoPhillips and Denbury Resources. The Motley Fool owns shares of Denbury Resources. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.