Sweet 16 Update - Sept 7

[dan_s]

Thanks to higher oil and gas prices, the Sweet 16 had a decent week, but it is still trading way below Net Asset Value. WTI is now up $13.50/bbl (over 30%) since the late December low. Permian Basin natural gas and to a lesser extent NGL prices have been terrible recently. All of our Permian companies get the majority of their revenues from oil sales.

Two of our three new members, Oasis Petroleum and Talos Energy are off to a good start. OAS is up 7.37% since September 1, TALO is up 8.61%. Solaris Oilfield Infrastructure (SOI) is down 2.04% this week. Solaris is a unique oilfield services company that has very strong free cash flow from operations and it pays a dividend that I expect will keep going up.

Tab 2 of the main Sweet 16 spreadsheet shows my adjusted Fair Value and First Call's Target Price for each company. On each of the individual company forecast valuation models I now show a few of the most recent updated target prices from other analysts. I also show First Call's estimates for future revenues, net income and cash flow from operations.

We will be publishing an updated profile on Parsley Energy (PE) on Monday.