Sweet 16 Update - Feb 16

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dan_s
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Joined: Fri Apr 23, 2010 8:22 am

Sweet 16 Update - Feb 16

Post by dan_s »

For the week ending February 15, 2019 the Sweet 16 is up 10.16%. I cannot remember the last time the Sweet 16 was up more than 10% in one week.

The Sweet 16 is now up 17.64% YTD. Parsley Energy (PE) is leading the pack, up 28.49% YTD. I am moving Parsley Energy into the "Elite Eight".

Antero Resources (AR) and Pioneer Natural Resources (PXD) are the only companies to release Q4 2018 results.

This week I took a hard look at five companies and updated my forecast/valuation models based new information:
Antero Resources (AR) now valued at $22.00
Callon Petroleum (CPE) now valued at $14.00
Continental Resources (CLR) now valued at $80.00 < my Top Pick if you believe oil prices are going higher. None of their oil is hedged.
PDE Energy (PDCE) now valued at $74.00 < The top gainer in the Sweet 16 this week.
Pioneer Natural Resources (PXD) now valued at $190.00

West Texas Intermediate (WTI) closed at $55.79/bbl on Friday. The close above MAJOR RESISTANCE at $55/bbl is a big deal. Technically there is very little resistance between $55 and $60. IMO the "Right Price" for WTI is $60 to $65 per bbl.

Q4 results will be pouring out over the next two weeks, so check the EPG Forum for my initial reactions. I will updating the forecast/valuations as fast as I can.
Reporting Q4 results next week
Continental Resources (CLR) on Feb 18
Concho Resources (CXO) on Feb 19
Diamondback Energy (FANG) on Feb 19
Cimarex Energy (XEC) on Feb 20
Parsley Energy (PE) on Feb 21

I will be presenting an update on the Permian Basin at our February 26th luncheon. Seating is limited to 60 because we are in the San Jacinto room, so register early if you wish to attend.

On March 1st Hi-Crush is hosting our luncheon in Houston.
Dan Steffens
Energy Prospectus Group
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