Newsletter

[dan_s]

What do you guys think of our improved newsletter format? I think Jeff & Sabrina have done a fantastic job putting it together.

The expanded coverage means a lot more work for me. I have decided to publish the newsletter every three weeks instead of every two weeks. The reasoning is that it now takes me 3-4 days to get everything together for the newsletter. I need more time between editions to keep up with energy sector news, company profiles and forecast models. Plus, it take a lot of time and effort to find companies to host our luncheons in Dallas & Houston. [If any of you have contacts at companies that you think would benefit from hosting an EPG luncheon, PLEASE refer them to me.]

We now have some first class interns from SMU and Rice. They keep the pressure on me. My goal is to send out several updated profiles per week and I will include some overall market commentary in those Flash Alerts.

PS: Today we have 373 Premium Members in EPG. Our goal is to get 400 members by year-end. PLEASE HELP US REACH THIS GOAL. Feel free to use the newsletter to tell your contacts about us. Inviting your friends to join you at an EPG event in Dallas or Houston is the best way to attract new members.

[prince_jake_33]

The news letter is very professional I printed off a copy for my son and he is buying some Swift.

[dan_s]

Thanks. A lot of work goes into the newsletter.

I hope you guys all take a hard look at my updated forecast model for GPOR. That one really looks good. My Fair Value Estimate looks extremely conservative. MWE also deserves a hard look.

[gjames]

Dan:
I always look forward to receiving your newsletter!
I'm wondering your "post-election" thoughts on share price to cash flow multiples that you have discussed many times recently, including this weeks newsletter. I have felt for a while now that we would not see multiple expansion until or unless we got a business friendly election outcome. Now that it appears our country is spiraling towards socialism, do you think 3 - 4 times cash flow will be the "new normal" for E&P valuations. Has the market been pricing in Tuesday's outcome and we just didn't realize it?
Thanks for all you do!
gj

[dan_s]

AS I discussed with Joe Dancy in Dallas and mentioned in the newsletter. I believe quality companies trading at 3X to 4X CFPS are "Screaming Takeover Targets". The reason being that with today's futures market it is so easy to hedge production and lock in cash flows.

Take a look at my forecast model for Whiting Petroleum. I cannot believe a major does not make a run at that company. WLL has the highest rate per per of all the companies in the Bakken. They hold over 700,000 acres in one of the most promising oil plays in the world.

With Obama's re-election we are in exactly the same place we were a week ago. The GOP control of the House will force Obama to compromise unless he wants to go down in history as the worst president ever, who lead the country over the fiscal cliff. Washington is run by a bunch of fools but even those idiots won't let this happen.