"THIS HAS BEEN ONE OF THE SHARPEST CORRECTIONS ever in E&P," says David Kistler, an energy analyst at Houston-based Simmons & Co., which focuses on independent North American energy and production stocks. "Nearly every stock screens with tremendous valuation upside." Simmons estimates that major independents like Anadarko Petroleum (APC), Devon Energy (DVN) and XTO Energy (XTO) now trade at little more than half their net asset values. Kistler views the independents' risk/reward ratio as excellent.