Energy Prospectus

Stifel issued an update on Concho Resources (CXO) this morning with a SIGNIFICANT increase in their target price. I don't remember ever seeing a target price raised by $55. - Dan

We are raising our NAV estimate to $169/share from $160 and our target price to
$170 from $115, based on CXO’s well productivity in the northern Delaware Basin.

CXO has the highest 12-month average production rate of any company that has
completed at least 40 horizontal Bone Spring and/or Avalon wells in Lea and Eddy
counties, New Mexico, over the past four years. The same is true for oil production
rates, albeit by a slimmer margin. CXO's 2014 Bone Spring/Avalon wells also had
the highest 90-day averages for the same list of companies.

Permian Basin Oil Prices
After widening to an average of $11/Bl for much of 3Q14, the Midland/Cushing
basis differential narrowed to $8.15/Bl during the last few days of August.