SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Gold/Mining/Energy : Clayton Williams Energy (CWEI) OIL
CWEI 131.900.0%Apr 25 5:00 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Jim Rathmann who wrote (717)6/9/1997 6:07:00 PM
From: Taylor Mill   of 1017
 
Jim

It is true that CWEI and CHK do not compare favorably on PE and CF multiples. But rather than simply pass it off as you have, you should question why??

As a shareholder in both, I find that CHK has a much more sophisticated, much more diverse and much more aggressive exploration program with a short but stellar history of finding new reserves. This is in despite of recent technical problems they have encountered in Louisiana that has hurt their stock price in recent weeks.

CWEI does not have any established track record of exploration success. Companies that have limited exploration and exploitation accomplishments in recent years get bottom of the barrel multiples in the marketplace. And despite their desire for success that they espouse for turning their exploration program around in the East Texas reef trend, they have not done so yet. So the market is very reluctant to reward them with multiples like it does other companies. I personally own CWEI based on the belief they are undervalued based on exploitation properties, ie the Austin Chalk drilling at present. If they happen to have success in the Cotton Valley then that would be a nice bonus. In the meantime, we need to keep things in perspective ---- particularly what are and what aren't reasonable comparisons to other producers.

CWEI to CHK is really 'apples to oranges' and just not very meaningful.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News