Sweet 16 Update - July 21

[dan_s]

There is a lot more green on the spreadsheet this week. Continental Resources (CLR) made a big move. It is now up 64% since being added to the Sweet 16. It is still well below my Fair Value estimate, which you can find under the Sweet 16 Tab.

EOG Resources is down 13.2% since being added to the portfolio on February 18. That makes some sense since oil made a big dip in Q2. However, EOG has a lot of oil hedged, so they will report solid 2nd quarter results. EOG is the "Big Dog" in the Eagle Ford Shale which will leap over the Bakken to become the #1 shale play in North America within two years. EOG also has a major stake in the Bakken, Permian Basin and Barnett Combo (oil).

Energy XXI (EXXI) got a nice boost when MMR announced they will complete the Davy Jones well to sales within a couple weeks. The company's Deep Shelf program with MMR is definitely exciting stuff but I think Wall Street should be focused on the fact that EXXI is rapidly increasing production on the properties it acquired from Exxon. They should book a very impressive addition to proven reserves. BTW June is Energy XXI's fiscal year-end. I am talking to Energy XXI about hosting our luncheon in Houston in September.

GPOR will provide an update on their Utica Shale wells on July 30.

RRC and WLL will report 2nd quarter results this week. Whiting's should be very impressive. RRC is our largest gasser and the "Big Dog" in the Marcellus Shale. Both companies are prime takeover targets.

All Sweet 16 forecast models will be updated shortly after they release Q2 earnings.

PXP will be moving back into the Sweet 16. I also have my eye on END, which has impressive production growth just ahead.

[dan_s]

Continental Resources, Inc. (CLR): An updated Net Income & Cash Flow model has been posted under the Sweet 16 Tab. Just click on the CLR logo.