RSP Permian (RSPP) looks strong heading into 2017. The Silver Hill Energy Partners acquisition takes production up to more than 50,000 BOE per day and development drilling will push it over 60,000 BOE per day by 12/31/2017. Production mix in 2017 of approximately 73% crude oil, 12% natural gas, 15% NGLs.
RSPP is a pure play on the Permian Basin.
I have updated my forecast/valuation model, extending it through 2018 based on the company's guidance for 2017. YOY production growth s/b 85% to 90% in 2017, compared to 38% YOY growth in 2016.
My valuation increases $11.00/share to $62.00. First Call's price target is $52.62.
My forecast model will be posted to the EPG website later today.
RSP Permian (RSPP)
RSP Permian (RSPP)
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group