The Sweet 16 finished the week strong, up 5.32% for the week and now up 13.68% YTD. This compares to the S&P 500 Index that is up just 0.18% YTD.
We will be sending out the next edition of The View From Houston on Monday, which will highlight several of the companies.
Sweet 16 Update - April 9
Sweet 16 Update - April 9
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Sweet 16 Update - April 9
I took a hard look at my forecast models and valuations for Diamondback Energy (FANG) and Cimarex Energy (XEC) on Saturday morning. Both stocks closed above my Fair Value Estimates on Friday.
I have "tweeked" my forecast models and slightly increased my valuations, but both of these companies are now trading at close to 12X CFPS. I cannot justify higher valuations until I get more information, which will be when first quarter results come out in early May.
If you own XEC, I suggest moving that money to NFX, DVN or CLR. These are my Top Picks for what they have in SCOOP & STACK
If you own FANG, I suggest you consider moving to CRZO, PDCE, RSPP or CPE.
To be clear, there is nothing wrong with FANG or XEC. They are both high quality companies with a lot of running room.
It is a very good sign that some companies are finally approaching my valuations. A sign that some big money is rotating back to the energy sector.
I have "tweeked" my forecast models and slightly increased my valuations, but both of these companies are now trading at close to 12X CFPS. I cannot justify higher valuations until I get more information, which will be when first quarter results come out in early May.
If you own XEC, I suggest moving that money to NFX, DVN or CLR. These are my Top Picks for what they have in SCOOP & STACK
If you own FANG, I suggest you consider moving to CRZO, PDCE, RSPP or CPE.
To be clear, there is nothing wrong with FANG or XEC. They are both high quality companies with a lot of running room.
It is a very good sign that some companies are finally approaching my valuations. A sign that some big money is rotating back to the energy sector.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group