Sweet 16 Update - February 15

[dan_s]

The Sweet 16 moved up another 1.7% last week and it is now up 13.9% YTD.

Crude oil prices do appear to be forming a solid base level. The rapidly declining rig count will result in a much tighter oil market during the 2nd half of this year. If this is anything like previous big dips in the oil price, we will see a 3-4 month "bottoming period", followed by a 6-8 month reversion to the mean (approximately $70/bbl for WTI this time).

This week: XEC, DVN, EOG, and SM will report 4th quarter results. I will be updating the forecast models as soon as I can.

I will be in Dallas on Thursday teaching an Oil & Gas Accounting course at SMU, so it may be next weekend before I can update all of the models.

I am expecting all of the Sweet 16 to report solid Q4 results.

Sabrina will be posting an updated Sweet 16 spreadsheet to the website this evening. You must log on to see it.

[dan_s]

My valuations compared to First Call's Price Targets are now available for download from the website.

You must be a member and log on to see them.