Sweet 16 Changes for 2023

[dan_s]

Two long-time Sweet 16 companies are being moved from the Sweet 16 to our High Yield Income Portfolio:
> EOG Resources (EOG)
> PDC Energy (PDCD)
They are both rock solid and they will keep increasing production and dividends. They are classic "Growth + Income Companies"

Replacing EOG and PDCE are:
> Crescent Point Energy (CPG) with current production of ~137,000 Boepd.
> Permian Resources (PR) with current production of ~145,000 Boepd.
They have lots of "running room" and they pay nice dividends. They both have steady production growth locked in.

I will be adding two new companies to our Small-Cap Growth Portfolio in a few days.

The Sweet 16 is our "Flagship Portfolio" that I believe has at least 50% upside for us in 2023.

[allen46]

Not sure why PDCD is going to the high yield portfolio. Thought their yield was in the 1 to 2% range. What am I missing?

[aja57]

PDCE paid me a $1.00/share this last last quarter. Granted it's one quarter but extrapolated over a year at this price would be a 6% dividend.

[dan_s]

EOG and PDCE both now pay a Base Dividend + a Special Dividend each quarter. Based on my forecast, they should be able to increase dividends this year. They both generate a lot of free cash flow.

Both of them should also generate 8% to 12% production growth this year.

For PDCE I believe that their aggressive stock buyback program will have more impact on the share price. YOY they have reduced the shares outstanding by ~4% already. At 9-30-2022 they only had 92.7 million shares outstanding, a low amount for a company of their size.

This is not a "demotion" for EOG or PDCE. All of the companies in our High Yield Income Portfolio are high quality "Growth + Income" companies.