The is one of Goldman Sachs “Top Picks” and I can see why. It had fantastic Q1 results and the rest of the year looks great. They have a lot of Haynesville gas production but they are now focused on increasing liquids, primarily from:
> S. California where current production is ~40,000 bopd and should drift modestly higher. <Getting a nice premium to WTI on this oil now.
> Granite Wash (Texas): Production going from 9,000 boepd today to over 17,000 boepd by year-end
> Eagle Ford (Texas): Production going from 3,000 boepd today to as high as 10,000 boepd by year-end
I have raised my Fair Value estimate for PXP $7 to $57.00 per share.
My updated forecast model will be available on the website tomorrow.