Sweet 16 Changes - March 31

[dan_s]

When the markets close today Callon Petroleum (CPE) and Carrizo Oil & Gas (CRZO) will officially be added to the Sweet 16.

They replace Noble Energy (NBL) and SM Energy (SM). SM will go into our Small-Cap Growth Portfolio. NBL and SM are both trading well below my valuations. Both should report strong production growth in the 2nd half of this year. NBL will remain high on my radar screen, but it's offshore activity is not in favor with Wall Street these days.

Callon and Carrizo appear to have double digit production growth locked in for many years. Callon is a pure play on the Permian Basin. Carrizo is primarily an Eagle Ford company, but it also has a core area in the Permian.

CLR, DVN and NFX all have production growth under 10% for 2017, primarily because of asset sales. However, I do not want to replace them.

MTDR and LPI deserve promotion to the Sweet 16 and I will take another look at the end of June.

All of our Small-Caps are doing quite well. We sent out a profile on ESTE today and we will send out updated profiles on LONE and REI next week.