Aug. 6 at 9:47 AM
$MGY $EOG $DVN $XOM $COP
These are the estimated forward PE levels for my top individual energy picks.
I also own a small percentage of NOG and a much larger position in the XOP basket and ET for the pipes.
Even with oil simply staying in the
$70’s we get this.
Just imagine what the earnings will be with a
$100 floor for WTI.
By the way,
$100 oil is cheap.
Also, oil at
$100 will not cripple the economy.
Circle back to ET. If oil/gas prices stay higher for longer, ET will earn even more money as they renegotiate future contracts. Steady FCF should continue to be expected.
So here’s my current weights and plans to increase positions.
COP - 2.11% increase to 4%
DVN - .77% increase to 2%
EOG - 2.90% increase to 4%
ET - 4.19% hold
MGY - 2.24% increase to 4%
NOG - 1.02% increase to 2%
XOM - 2.36% increase to 4%
XOP - 4.29% hold
As I increase, 28-30% will be the target weight.
