Energy Prospectus

I was expecting strong 3rd quarter results from all of our Bakken Shale companies. We have 8 in the Sweet 16. They have not disappointed me. DNR and CLR had very strong growth from the Bakken. Take a look at Whiting (WLL) when you get a chance. We should have a company profile on WLL late this month.

It is important to note that this strong production and reserve growth will continue into the 4th quarter. Weather does not become a major issue up there until late December. Plus, there is more infrastructue now to allow well completions all year.

Dan,
I am glad to hear you are working on a report for WLL. I will look forward to it. Thank you.

Believe me, the work never stops here at EPG. We now have five interns working on company profiles, three from SMU and two from Rice. They are some of the sharpest students in the MBA programs. I am bless to have them as part of our team.

Profiles that are nearing completion:
> Whiting Petroleum (WLL): A major Bakken player with production growth locked, similiar to CLR
> McMoRan Exploration (MMR)
> Triangle Petroleum (TPLM)

I am planning to make a lot of changes to the Sweet 16 on January 1st. After Thanksgiving I plan to go over each company on our Watch List and force rank them, looking for those that offer us the best chance at market beating results in 2012. All of the companies now in the Sweet 16 have rock solid fundamentals, so I will have some tough choices to make.

Is MHR worth a look?

Yes. Magnum Hunter (MHR) is on our Watch List. It did not look that good six months ago when I first added it to the Watch List but it looks better today.

It has been assigned to one of our SMU interns for a profile this month. I intend to spend a lot of time on it myself.