Sweet 16 Updates - Feb 28

[dan_s]

14 of the Sweet 16 companies have released Q4 results. ESTE and TALO will announce Q4 results in early March.

All 14 forecast/valuation models are now up-to-date. They all met or beat my Q4 forecasts. 2020 is getting off to a bad start, but these stocks were so oversold anyway, the current share prices really can't be justified even if you think WTI will average $45 in 2020.

Knowing what each company's hedges are is EXTREMELY IMPORTANT at this point in a "Market Correction". I put a table of each company's hedges at the bottom of the forecast models. Note that because WTI started off the year so much higher, it will average around $50/bbl in Q1 unless WTI goes a lot lower. I believe ("hope") that OPEC+ will announce a large production cut next week to stabilize oil prices. We just need less FEAR at this point.

I believe the FEAR of COVID-19 is much worse than reality. Check out my daily updates on the virus. The number of active cases is actually falling, but the media is not reporting that.

[dan_s]

On March 2, 2020 here are Stifel's price targets for the Sweet 16 companies that they follow.

CPE: $8.30
CLR: $62.00
CXO: $169.00
EOG: $115.00
FANG: $145.00
MTDR: $24.00
OAS: $8.70
PDCE: $54.00
PE: $31.00
PXD: $246.00
XEC: $106.00

They don't over ESTE, OVV, RRC, SOI or TALO