Sweet 16 Update - Jan 4

[dan_s]

The main Sweet 16 spreadsheet has been updated on the EPG website.
> It shows my valuations for each company assuming WTI oil averages $60/bbl in 2020
> It also shows First Call's price targets for each company.
> With the escalation of tensions in the Middle East, it is a good bet the oil prices will be going much higher.

AR and RRC are down because the outlook for natural gas is not good. They will be fine because they both have a high percentage of their gas hedged at good prices AND the outlook for NGLs has improved.

10 of the Sweet 16 are trading below book value and there is no rational explanation for that unless you believe oil is going back into the $40s. The Sweet 16 are all profitable at today's oil & gas prices and they have lots of running room.