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: Think4Yourself who wrote (55748)	12/1/1999 1:31:00 PM
From: hdrjr	Read Replies (1) of 95453

JQP, That was a wonderful hedge for XTO. It would mean at least an additional 8 cents/share even if there is no increase in production which was up 18% for oil in the last quarter and the rest of their production sells for the last quarter price of $19.28 which is not going to happen. XTO made 18 cents per share (excluding gains from investments and property sales) for the 3rd quarter. Therefore that hedge locked in a 44% increase in EPS. Last quarter's average price for gas was 2.32 and one has to assume that XTO will beat that average also. The current 12/99 and 3/00 EPS estimate is 23 cents. These will be exceeded easily with no increase in production. XTO's production costs are among the lowest in the industry and fairly predictable from one quarter to the next. Basically XTO makes money above $17.25 and $2.10 approximately. hdr

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