EPG Small-Cap Growth Portfolio Updates - Nov 30

[dan_s]

Today I updated all for the forecast models for the companies in our Small-Cap Growth Portfolio.

Baytex Energy (BTE) moved up to the Sweet 16 to replace Earthstone Energy (ESTE) that merged into Permian Resources (PR) on November 1st. I am super bullish on PR, which looks like a Takeover Target to me. My valuation of PR is $21.

I have added Granite Ridge Resources (GRNT) to the Small-Cap Growth Portfolio with a valuation of $9.40. First Call's Price Target is $8.67.

Granite Ridge Resources beat my Q3 forecast, and they increased full-year 2023 production guidance. It is a Non-Op company, similar to Northern Oil & Gas (NOG), but much smaller. It pays a nice dividend of $0.11/quarter for annualized yield of ~7.2%. It is in "Growth Mode" and I think there is a good chance that they beat my Q4 forecast. They achieved 22.4% YOY production growth in 2022 and are on-track for ~21% YOY production growth in 2023.

GRNT, IPOOF, REPX, SOI and Surge Energy (ZPTAF) all pay nice dividends.

All of the forecast model on the EPG website have now been updated for Q3 results and updated guidance.