Sweet 16 Update - Jan 26

[dan_s]

I spent the last two days reviewing each Sweet 16 individual company forecast/valuation spreadsheet. They will all be updated on the EPG website by Saturday morning. I have changed a few valuations, but all of the companies look good and they will all report good Q4 results. Keep in mind that "Reported Earnings" and "Adjusted Earnings" can be much different for companies that have a lot of their production hedged. "Adjusted Earnings" do not include the non-cash mark-to-market gains and losses on hedges. Adjusted Earnings are comparable to First Call EPS forecasts and my forecasts.

We will also update the main Sweet 16 spreadsheet on Saturday morning that shows my up-to-the-minute valuation for each company compared to First Call's price targets. Just keep in mind that First Call numbers are not "up-to-the-minute". FC numbers include some forecasts that are up to six months old.

I posted detailed comments on each S-16 company under this tab, so I won't add to it here. Every stock is up since our last newsletter and some are up quite a bit. As a group, the Sweet 16 is still 84% below my valuation.

We will be sending out the next edition of the newsletter early next week.

If you plan to attend our luncheon in Houston on Monday, PLEASE register this weekend so we can give the Hess Club an accurate headcount for lunch. Also, if you want to bring a guest you MUST send their name to Sabrina at energyprospectus@gmail.com