High Yield Income Portfolio Update - Jan 20

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dan_s
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Joined: Fri Apr 23, 2010 8:22 am

High Yield Income Portfolio Update - Jan 20

Post by dan_s »

I have updated my forecast models and valuations for all six of the large-cap upstream companies in our High Yield Income Portfolio (CTRA, DVN, FANG, EOG, PDCE, PXD).

Coterra Energy (CTRA) is the only "gasser" in the group, so it took the largest hit to the valuation, but it is still trading way below my valuation of $33.

PDC Energy (PDCE) is trading at the largest percentage discount to my valuation of $97 and my valuation is only 3.5 X annualized operating CFPS. PDCE definitely deserves more "love" from the Wall Street Gang. In addition to a nice dividend, it is aggressively buying back stock.

I also updated my model and valuation for STR, which is my Top Pick out of the four minerals companies.

I will update the other six companies in the portfolio (BSM, KRP, VNOM, AM, OKE and PAGP) tomorrow.
Dan Steffens
Energy Prospectus Group
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