Sweet 16 Update - Nov 7

[dan_s]

The Sweet 16 actually had a good week despite all of wild moves in commodity prices thanks the election "noise". When will "Weird 2020" end!

Antero Resources (AR) was added to the Sweet 16 on November 1st. It replaced Concho Resources (CXO).

Since I was on vacation all last week, I have a lot of individual forecast valuation models to update.
So far I have updated AR, CPE, DVN, EQT, MTDR, OVV, PE and RRC.

EQT Corp. was promoted to the "Elite Eight". The Elite Eight are the large-caps that have the lowest risk because of their size and access to capital.

I will be replacing Parsley Energy (PE) because it is merging with Pioneer Natural Resources (PXD). The merger makes a lot of sense and should be a "win-win" for shareholders of both companies.

EOG Resources (EOG) announced a significant natural gas discovery in Webb County, South Texas. EOG estimates that their Dorado Prospect holds 21 Tcfe of recoverable gas, NGLs and some oil from 700 feet of stack pay zones. EOG has drilled 17 wells within the prospect, so they have a good idea of what is down there. Even for a company of this size, it is a big deal. Since the announcement Stifel and Merrill Lynch have rated EOG a BUY with price targets of $89 and $65.

Check the EPG website each day for my updated valuation models. My updated CPE forecast model will be on the website late today.