Energy Prospectus

Note that four of them are in the Sweet 16.

http://247wallst.com/energy-business/20 ... nd-in-oil/

When FEAR takes over the market and drives down share prices, it is an opportunity to add some high quality "Core Holdings". The four Sweet 16 companies mentioned in this article are rarely "on sale". Keep in mind that all of these companies have weathered dips in oil prices a lot worse than what's happening now. All of them are going to report strong 3rd quarter results.

These Q3 conference calls will be interesting to see and hear who has laid on additional oil hedges and whether they've increased their relative percentage of hedged production during the slide. While WTI closed at $89.74 today, the 12 month strip closed at $86.60. We're in the heart of capex budgeting season for 2015, afterall.

What you are going to hear on all of the Sweet 16 Q3 CC is increasing production and declining costs. I have gotten reports that costs have come down 10% to 20% from a year ago.

I think costs for the TMS wells are of great interest to a lot of people... if (IF!) the TMS can be exploited at good cost, Halcon, Goodrich and Sanchez were incredible bargains right now... but if TMS oil is only economic when oil is at $90...

Some very smart engineers will figure it out. Relatively small exposure for SN.

I finished up my profile on MHR today and I will work on GDP this week. They "bet the farm" on the TMS.