Sweet 16 Snapshots

[dan_s]

At last week's luncheon in Houston I spent a few minutes going over the Sweet 16 3rd quarter results. Several members asked me to share my PowerPoint slides. They are now up on the Home Page and you can download them as a pdf file.

I will repeat the presentation in Dallas on December 5th.

At the back of the presentation is a "snapshot" slide for each of the Sweet 16 companies.

We have updated our profiles on each of the Sweet 16 except for SM Energy, which I am still waiting on. The SMU intern that was assigned SM is now in final exams, so I told him his school work comes first. We should have it by this weekend. My forecast model for SM has been updated.

All of the Sweet 16 are on-track for solid 4th quarter results. For many of them, higher natural gas prices will offset lower crude oil prices in Q4.

In December, we will publish profiles and detailed forecast models for most of the companies in our Small-Cap and Income portfolios. I have gotten several e-mails about PetroBakken (PBKEF). It looks very good to me and they are going to report a strong increase in production in the 4th quarter. PetroBank announced that they are going to distribute ("spin-off") their 57% stake in PetroBakken to shareholders. I think this is confusing a lot of investors. PetroBakken says it is going to maintain its program of paying regular monthly dividends.

"On October 29, 2012, Petrobank and PetroBakken entered into an agreement to complete a corporate reorganization that will see Petrobank shareholders effectively receive Petrobank's proportionate interest in our PetroBakken share holdings while maintaining their interest in the remaining Petrobank assets (the "Reorganization"). A joint information circular describing the Reorganization is expected to be mailed to shareholders in mid-November for a shareholder vote in mid-December. Subject to approval of shareholders of both Companies and other standard approvals, the Reorganization will be effective December 31, 2012."