Sweet 16 Summary Spreadsheet - Dec 31

[dan_s]

My final updated summary spreadsheet for the 2023 version of the Sweet 16 has been posted to the EPG website.

> On Tab 2 you can find my current valuations compared to First Call's price targets for each stock.
> Tab 1: Focus on my Adjusted Net Income Forecasts for Q4 based on $75 WTI and $3.00 HH ngas for the quarter. Actual oil and gas prices were higher.
> "Reported Net Income" of "GAAP Net Income" will be higher for all the companies that have hedges in place since oil and gas prices declined into year end. I expect all 16 companies to report strong EPS for Q4.
> Net Income per share for 2023 will be lower than 2022, but still very good.
> Q4 Reported Net Income should be higher than Reported Net Income for Q3.
> VTLE and SBOW trade at CFPS ratios under 2.0; which is too low for profitable companies. Average for the group is 3.62, which is also very low for a group of companies of this quality.
> IMO there is nothing to justify five companies (BTE, CPE, CPG, VTLE and SBOW) trading below book value.

Oil & gas price volatility is what's keeping a lot of investors away from the sector.