Oil & Gas Prices used in all EPG models - Oct 16

[dan_s]

I will be updating all of the Sweet 16 forecast models this week. Below are changes to my oil & gas price assumptions.

For each model I adjust realized prices for regional price differentials and for the impact of each company's hedges.

For Q3 2023:
> WTI raised $2.00 to $82.00/bbl
> HH ngas raised $0.10 to $2.60

For Q4 2023:
> WTI lowered by $5.00 to $85.00/bbl
> HH ngas raised by $0.25 to $3.00/mcf

For 2024 I am staying with $90 for WTI and $3.25 for HH ngas. I believe the "Right Price" for WTI is somewhere within the range of $80 to $100 per barrel. IMO the risk for the oil price is to the upside. Natural gas prices will be driven by the weather for the first half of 2024 and by demand growth in the second half of the year.

All of the forecast models are macro driven Excel spreadsheets, which you can download from the EPG website to your computer. Once you have the spreadsheet on your computer, you can change the production volume and commodity price assumptions at the bottom of the spreadsheet. Revenues, Net Income, Operating Cash Flow and Stock Valuations will automatically update based on your changes.