Sweet 16 Update - Feb 19
Posted: Fri Feb 18, 2022 7:45 pm
I will be taking questions about any of the Sweet 16 companies on my Saturday webinar that starts at 10AM CT on Feb 19.
There is a lot of noise in the headlines this week (Ukraine/Russia, Iranian Nuke Deal, What's the Fed going to do about inflation?) that is putting pressure on the overall market. No matter how well the individual companies are doing, they all still have "market risk". However, the energy sector seems to be holding up better than almost any other sector. If Russia does invade Ukraine it should push oil prices higher and maybe a lot higher.
For the week ending February 18 the Sweet 16 lost 5.32%, but it is still up 14.44%. The S&P 500 Index lost another 1.47% and it is now down 8.76% YTD.
Five of the Sweet 16 (AR, CRK, CLR, EQT and MGY) have now reported strong Q4 results and big increases in their proved reserves. They are all going to report even better first quarter results with commodity prices and a lot more unhedged production.
Comstock Resources (CRK) is the only stock down YTD, but it is in great shape. It should be reporting increasing free cash flow quarter-after-quarter in 2022 since a lot of the company's "Bad Hedges" expired in December. Comstock only has 23% of 2022 natural gas hedge with Swaps at $2.64 to $2.68, another 27% hedged with collars that have ceilings of $3.83 to $4.01 and 50% that is unhedged. None of their oil is hedged.
I will be highlighting several Sweet 16 companies on Saturday's webinar.
There is a lot of noise in the headlines this week (Ukraine/Russia, Iranian Nuke Deal, What's the Fed going to do about inflation?) that is putting pressure on the overall market. No matter how well the individual companies are doing, they all still have "market risk". However, the energy sector seems to be holding up better than almost any other sector. If Russia does invade Ukraine it should push oil prices higher and maybe a lot higher.
For the week ending February 18 the Sweet 16 lost 5.32%, but it is still up 14.44%. The S&P 500 Index lost another 1.47% and it is now down 8.76% YTD.
Five of the Sweet 16 (AR, CRK, CLR, EQT and MGY) have now reported strong Q4 results and big increases in their proved reserves. They are all going to report even better first quarter results with commodity prices and a lot more unhedged production.
Comstock Resources (CRK) is the only stock down YTD, but it is in great shape. It should be reporting increasing free cash flow quarter-after-quarter in 2022 since a lot of the company's "Bad Hedges" expired in December. Comstock only has 23% of 2022 natural gas hedge with Swaps at $2.64 to $2.68, another 27% hedged with collars that have ceilings of $3.83 to $4.01 and 50% that is unhedged. None of their oil is hedged.
I will be highlighting several Sweet 16 companies on Saturday's webinar.