A significant portion of mid- and small-cap oil and gas stocks in the US, about one-third, are currently trading below their book values, the highest level since the pandemic. This presents a prime opportunity for value investors, as energy stocks have underperformed, losing roughly 14% since early April amid concerns over global trade tensions and increased OPEC production. Investors like Cole Smead see potential in these undervalued stocks, anticipating a rebound to at least their book value.