"The most undervalued on the basis of a reasonable price tag are the North American exploration and production companies. There are probably 50 companies, but among the ones that are most undervalued are Anadarko Petroleum [APC] and Chesapeake Energy [CHK] and Apache [APA]."

"The most undervalued on the basis of a reasonable price tag are the North American exploration and production companies. There are probably 50 companies, but among the ones that are most undervalued are Anadarko Petroleum [APC] and Chesapeake Energy [CHK] and Apache [APA]."

"The most undervalued on the basis of a reasonable price tag are the North American exploration and production companies. There are probably 50 companies, but among the ones that are most undervalued are Anadarko Petroleum [APC] and Chesapeake Energy [CHK] and Apache [APA]."

"We like some of the Canadian companies, EnCana and Canadian Natural Resources, which have tremendous resources in countries that are safe and where you can make a profit. In the case of Canadian Natural [CNQ], for instance, they have an enormous oil-sands investment whose substantial production and profit value is just becoming visible."

"Royal Dutch Shell [RDSA], because of their impending purchase of Shell Canada, will be able to add in Shell Canada's oil-sands reserves, which have been significantly upgraded. I'm still crazy about the oil sands. I keep telling anybody who doesn't know about the oil sands to buy some and put it in your kids' or your grandkids' account and just forget about it, because it is clearly a unique asset that is economic at much lower oil prices. If prices go to $100 a barrel, it will be phenomenally profitable, because it goes on forever." Smith also states the company is a better value then Exxon Mobile as far as big oil is concerned.

Smith believes the company is a takeover target, perhaps by BP, as it has little exposure to Canadian oil sands.

Smith believes this company is also a takeover target by a major oil company.

"There is a re-emergence of the master limited partnership for upstream companies"