Energy Prospectus

All 16 stocks in the portfolio moved higher this week, as the portfolio gained 5.3% for the week. It is now up 30.4% YTD, compared to the S&P 500 which is now up 8.4% YTD. I am going to check all of my forecast models and post a detailed Sweet 16 Update on Sunday.

Biggest gain of the week goes to SM Energy (I told you so.) Nice to see Wall Street starting to see what I've seen all year.

Enjoy the weekend. Real football is finally here!

I just spent three hours working on Carrizo Oil & Gas (CRZO). I've raised my Fair Value Estimate $4.80/share to $86.30. The current share price is a good entry point for this one. Natural gas production will be down in Q3 because they shut in some wells due to low prices in Appalachia (smart move), but their Eagle Ford crude oil production is continuing to drive higher. CRZO's revenues are now HEAVILY weighted to crude oil sales.
I talked to the CEO at EnerCom and they are now building a leasehold position in the Delaware Basin. They have 15,000 net acres today and hope to get 50,000 net acres. Their target area looks good. XEC and CXO are completing very good wells in the Delaware Basin.

Nicol finished editing the video of my Sweet 16 2nd Quarter Update (filmed in Dallas on August 15) and Sabrina will get it posted to the website today. Let me know what you think. We plan to do this each quarter.

We will be sending out updated profiles & forecasts for CLR and CRZO on August 31st. I hope to finish the profiles on EOG and UNT by Monday.

What happen each month is that the interns all finish up most of their assignments at the end of the month because I send out their checks on the first of the month. One of the most powerful rules in the world is "What gets rewarded, gets done."

Our interns are Super Sharp and I am so pleased that they are very interested in careers in the energy sector. There are a lot of old farts like me in this industry and we need new blood to supply the world with abundant energy. Our standard of living depends on energy.

I loved the video update. So much easier to understand on video with you explaining the reasons and time frames as opposed to just reading another update. I feel like I learned a lot and am now more comfortable adding to SM and WLL. Thanks for taking the time to add a human element to the analysis, Ken

Me too, Dan! Thought the video was VERY informative and professionally done...GREAT JOB!

re: video, Yes, same here...I liked the overview along with individual features and details provided. Your depth of knowledge is obvious. Thanks.

Continental Resources (CLR): An updated profile and forecast model have been posted under the Sweet 16 Tab.

Always enjoyed the audio casts--this is a great alternative. T hanks, Marty Z.