Strictly: Drilling and oil-field services Message Board

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Gold/Mining/Energy : Strictly: Drilling and oil-field services

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To: Razorbak who wrote (53832)	11/1/1999 8:20:00 PM
From: Gameboy	Read Replies (1) of 95453

Razor, tis a fast and ever changing world we live in. Parker's 3rd quarter earnings more accurately reflect 1st and 2nd quarter crude prices than they do current conditions. Your analysis failed to account for the fact that crude prices have been rising rapidly; third quarter crude averaged $21.71/barrel and so far fourth quarter (October) crude has averaged $22.74. The lag time for rig rates, drilling rates, etc., probably lags crude rates by 6 months and longer. Higher crude 3rd quarter and still higher crude 4th quarter means some immediate money in the pocket for Parker, but the big payoff is still on its way. Parker, and many others in this sector, have probably troughed this third quarter. The benefit of higher crude prices will show up in future quarters. The momentum is just beginning to build. With $50 million in available credit and $50 million in cash, Parker is well positioned to seize the opportunities at hand.

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