Four Oil & Gas Co's To Keep An Eye On

Anadarko Petroleum Corp. (APC) , Apache Corp (APA), Chesapeake Energy Corp. (CHK) and Pioneer Natural Resources Co. (PXD) may benefit most from new rules currently being discussed that would allow them to report probable reserves as well as proven reserves, says Citigroup (C) analyst Gil Yang.

The rules are part of discussions between the U.S. Securities and Exchange Commission, accountants and representatives from the oil and gas industry. The SEC is expected to allow companies to report probable reserves sometime between 2010 and 2012, which will “increase the visibility of the upside to proved reserves in the industry,” Mr. Yang told clients in a note.

The companies noted should benefit most because the market is placing little or no value on this potential upside. Producers want to bring their reporting in line with global accounting standards, make it easier for investors to understand their entire asset base, and see their unconventional resources get proper recognition, the analyst added.

APA /APC /CHK /PXD 1-year chart