Sweet 16 Update - Feb 23
Posted: Wed Feb 23, 2022 6:57 pm
I will be travelling for a few days (Feb 24 to Mar 1) and I will have limited access to the internet, but I will try to check the market on Friday and Monday.
Since last Friday's close the Sweet 16 gained 0.9% and is now up 15.34% YTD.
The S&P 500 Index continues its rough start, down another 2.58% to now down 11.34% YTD. Thanks to all the war mongering and the FEAR of what the Fed will do next, lots of funds have moved more money to the sidelines.
Oil and gas prices continue to drift higher and are well above the commodity prices being used in my forecast models.
I have updated 10 of the 16 forecast models and I am sending an updated Sweet 16 Summary to Sabrina for posting to the EPG website. I have highlighted in yellow the valuations that I have changed. They've all moved higher because of the higher oil & gas prices that I've started using. Plus, they have all reported solid Q4 results.
I posted early this week that Raymond James officially raised their oil price forecasts to $100/bbl for 2022 and $90/bbl for 2023. I agree with their analysis of the global oil market. It is much tighter than investors realize and I think the risk to their price targets are to the upside. OECD petroleum inventories are now down to the "Danger Zone". Any disruption of oil supply could push prices well into triple digits. Team Biden needs to be very careful with Russia. Tough Sanctions on Russia could really hurt consumers more than they hurt Mr. Putin. He has zero fear of Old Joe.
Old Man Winter has definitely been kind to our "gassers". The next 12-months on the NYMEX strip are over $4.50 for HH gas. If these prices hold, there is a lot of upside for our five gassers. Ranger Resources (RRC) really looks good to me.
Hang tough. There is a lot of "noise", but everything points to a very good year for upstream oil & gas companies.
Since last Friday's close the Sweet 16 gained 0.9% and is now up 15.34% YTD.
The S&P 500 Index continues its rough start, down another 2.58% to now down 11.34% YTD. Thanks to all the war mongering and the FEAR of what the Fed will do next, lots of funds have moved more money to the sidelines.
Oil and gas prices continue to drift higher and are well above the commodity prices being used in my forecast models.
I have updated 10 of the 16 forecast models and I am sending an updated Sweet 16 Summary to Sabrina for posting to the EPG website. I have highlighted in yellow the valuations that I have changed. They've all moved higher because of the higher oil & gas prices that I've started using. Plus, they have all reported solid Q4 results.
I posted early this week that Raymond James officially raised their oil price forecasts to $100/bbl for 2022 and $90/bbl for 2023. I agree with their analysis of the global oil market. It is much tighter than investors realize and I think the risk to their price targets are to the upside. OECD petroleum inventories are now down to the "Danger Zone". Any disruption of oil supply could push prices well into triple digits. Team Biden needs to be very careful with Russia. Tough Sanctions on Russia could really hurt consumers more than they hurt Mr. Putin. He has zero fear of Old Joe.
Old Man Winter has definitely been kind to our "gassers". The next 12-months on the NYMEX strip are over $4.50 for HH gas. If these prices hold, there is a lot of upside for our five gassers. Ranger Resources (RRC) really looks good to me.
Hang tough. There is a lot of "noise", but everything points to a very good year for upstream oil & gas companies.