My To Do List - Dec 7

dan_s · Post by **dan_s** » Thu Dec 07, 2023 3:54 pm

Today I finished updating two more profiles, InPlay Oil and ONEOK, Inc. The profiles have been posted to the EPG website.

Tomorrow we have a luncheon in Houston that is being hosted by Hemisphere Energy, a small-cap upstream company that I recently moved into our High Yield Income Portfolio because of its 10% dividend yield and steady production growth.

I will open the presentation tomorrow with an Oil & Gas Market Update on why I believe WTI and HH natural gas futures are now oversold. Oil and gas prices appear to have found a support level today; if not today it will be soon. There is no "glut" of oil in this world and the U.S. natural gas market will tighten quickly in January if we just have a normal winter. OPEC+ has a bit of a communications problem that is being corrected; they are not going to flood the market with oil. Old Man Winter still doesn't believe in Global Warming, nor do I.

After the luncheon, my goal will be to finish updating the 8 profiles that are waiting for my review (KGEI, ROKRF, CIVI, HMENF, SOI, BSM, GRNT and ENB). We have three young and very smart MBAs (Nataly, Cas and Steven) that do a great job on the profile updates. They are all graduates of the SMU MBA program and they "Get It", which gives me hope for the future of America.

Susan & I have to go to a 3 year old's birthday party in Dallas this weekend, but I will be hard at work next week.

After the profiles are all updated, I will start extending the Sweet 16 forecast models into 2025. I will break out 2024 by quarter and add my initial WAG forecast for 2025. I will be adjusting my oil & gas price deck on Monday. BTW since oil and gas prices were so high in October, my 4th quarter forecasts are not going to be very far off.

All of the companies in our three model portfolios are in very good financial shape and they are profitable at today's oil, ngas and NGL prices.

What's going on today reminds me of the fable of "Chicken Licken", originally known as Henny Penny. He tried to convince everyone that the sky was falling. Don't become Chicken Licken because eventually no one will listen to you.