Energy Prospectus

Dan:

I have a position in NFX that is a few points in the black.

It seems to me that the Permian Basin is clearly the hot area, while the shares of companies focused on Scoop & Stack have not been moving up as much.

Do you think that the negative publicity related to earthquake activity in OK is preventing the shares of Scoop & Stack players from performing better?

Or are there some specific negatives about NFX that are holding its share price down?

I have been toying with the idea of selling some of my NFX and moving into FANG. Morgan Stanley raised its target for FANG up to $135 today.

Appreciate your thoughts.

Thanks,

MrHelium

NFX is up 31% YTD. My valuation is $59.35/share.

SCOOP/STACK wells are as good or better than the Permian Basin. It does not get as much press because the area is much smaller than the Permian Basin and there a fewer public companies. CLR, XEC, NFX, DVN and MRO hold the bulk of the good leasehold. CLR is up more than 125% YTD because of the fantastic results they are reporting in STACK.

I am expecting all five of the companies to report very good well results in SCOOP/STACK when they release Q3 results.

Earthquakes in Oklahoma are related to disposal wells. STACK and SCOOP wells produce relatively little water, so they are not the problem. Oklahoma will not going do anything to shut down SCOOP/STACK because it is to important to the state's economy.

FANG trades at a higher valuation than the Sweet 16 average, but it continues to impress. Plus, the Wall Street Gang loves it. CXO, PXD, PE and RSPP are other pure plays on the Permian you may want to consider.

NFX is a winner. STACK is the coming play, Permian has the attention now.

Analyst Actions: Evercore ISI Downgrades Newfield Exploration Company to Hold from Buy
BY Midnight Trader
— 1:52 PM ET 10/14/201