Energy Prospectus

All 16 green today with CRK leading the pack, up 9.7% but still trading at half of my current valuation. AR and EQT still trading below book value is totally insane with ngas prices at a seven year high.

I get 20 to 40 Wall Street Gang research reports each day. I just scan them for energy sector topics of interest. The "Gang" is just starting to see the Bidding War for natural gas that I have been telling EPG members about for over a month. When the leaders of the pack start to recommend the gassers they will take off. "Paradigm Shifts" cause huge stock price increases, especially when the companies they look at are already free cash flow positive.

As I mentioned in my podcast, historically natural gas price spikes don't last long. However, this one starting in September might last through year-end especially if the storage deficit to the 5-year average increases.

We will be publishing a profile on Brigham Minerals (MNRL) in the morning. Some of our members are "Heavy Hitters" in Europe, so they might be looking for some gassers to invest in since the ngas shortage in Europe is really starting to get some coverage. Germany is at the mercy of Russia this year.

This might be a record week!

LPI, rrc, ar lead the way today with 12,11,10 % gains

When the XEC + COG merger closes they will have a lot of unhedged natural gas. My valuation of XEC is $109, but it will go a lot higher if natural gas prices average $4.00 in 2022. My post-closing 2022 forecast model for the NewCo can be found under the Sweet 16 tab on the EPG website.

The combined company is expected to have over 700,000 BOE per day of production in 2022; approximately 75% natural gas, 13% crude oil and 12% NGLs.

XEC is merging into COG and then the combined company will be renamed. The NewCo will remain in our Sweet 16.

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