Energy Prospectus

Raymond James sent me a long and detailed report with updated stock valuations / price targets for the upstream companies that they follow. Here are those which I also follow. If one of your favorites is not on the list, it is just because RJ does not cover it.

NOTE: RJ is using a much higher oil price assumption in 2019 and 2020 than I am using in my models, therefore they favor the companies with more oil production. If you'd like to see their new (10/22/2018) oil price forecast, send an email to Sabrina (energyprospectus@gmail.com) and she will send it to you.

Raymond James current stock price target. They use a Net Asset Valuation, so these are what RJ believes the current break-up value of the company is.

AR = $24
CRZO = $44
CXO = $254
CLR = $107
FANG = $188
EOG = $162
LPI = $10
MTDR = $45
NFX = $39
OAS = $22
PE = $50
PXD = $328
SM = $42
SRCI = $18
VNOM = $57

The price action today in this sector was one of the most painful days that I have had in awhile. I don't know why it was that bad except for the oil price that was down 4% and the news that the Saudis plan to pump as much as possible. I know that it was a bad day for the stock market, but the other sectors of the market recovered by the end of the day leaving the energy sector the worst performer. These stocks have been trashed. Should I just sell them all and take my losses or do you think there is any hope for these stocks?

I will just tell you that all of the Sweet 16 are profitable, generating lots of cash flow from operations and they are all growing production & proven reserves.

What and when you buy & sell is up to each of you.