RSP Permian (RSPP)

dan_s · Post by **dan_s** » Tue Nov 15, 2016 6:03 pm

I spent the afternoon working on RSPP and we will be sending out an updated profile on the company in the morning.

I am sticking with my valuation of $51.00/share, but my confidence level has increased. First Call's price target is $50.57.

RSPP was added to the Sweet 16 on 8/15/2016. The Silver Hills acquisitions they announced in October is a SIGNIFICANT step change, putting them in the Delaware Basin. When both transactions close, RSPP's production will jump to over 45,000 Boepd and their four rig drilling program should ramp it to more than 60,000 Boepd by Q4 2017. This compares to their production of 24,250 Boepd in Q4 2015.

RSPP is a perfect example of what I am looking for when I select companies for the Sweet 16.