RSP Permian (RSPP)

[dan_s]

RSPP is the newest member of our Small-Cap Growth Portfolio.

I am increasing my valuation by $3.40 to $33.40/share, compared to First Call's Price Target of $31.23.

RSPP gave one of the most impressive presentations at EnerCom (it is available on their website). Their 2nd quarter results crushed my forecast and they increased their 2015 production guidance. I believe they will increase guidance again when they release 3rd quarter results. The company is on-track for more than 70% year-over-year production growth in 2015. They are drilling & completing more wells than expected without having to increase their capital expenditure program.

My updated forecast model has been posted to the EPG website.

We will send out an updated profile on RSPP tomorrow.

PS: I am "cracking the whip" on the interns to finish their August profile assignments by Sunday. Next up are CRZO, XEC, GST, SN and ESTE.

[dan_s]

The RSPP profile is now available on the website.