Sweet 16 Update - June 22

[dan_s]

RBC Capital sent out an E&P Sector Update after the market closed on Friday. Below is what they had to say about some of our favorites.

> APC (a former Sweet 16 Core Holding) is a large cap favorite with several upcoming catalysts and sustainable growth from its global exploration and unconventional onshore assets.
> We like CLR for its high sustainable oil growth and potential upcoming catalysts in lower Three Forks results and downspacing tests.
> CXO is our Top Pick due to its compelling valuation and high-quality Permian assets, and we expect best-in-class capital efficiency, growth, and margins.
> DNR has some of the highest margins in the industry and trades at proved NAV. We expect production growth of 10+% over next few years with little outspend and potential for FCF surplus beyond that.
> EOG has best-in-class shale oil drilling expertise and impressive oil growth for a large-cap, and we expect EOG to continue to come in towards the high end of its production guidance.
> We like ROSE's strong asset base in the Eagle Ford and Permian, and continued derisking of the Delaware Basin should be a catalyst.

[dan_s]

This morning I completed my review of our updated profiles on SM Energy (SM) and Rosetta Resources (ROSE). IMO they are both high quality mid-caps with significant upside in the Eagle Ford. SM Energy has more exposure to improving natural gas prices that should be a big plus for their revenues during the second half.

I will be sending out a Flash Alert with both profiles this afternoon. The SM profile is now available under the Sweet 16 Tab.