The Epic American Credit and Bond Bubble Laboratory Message Board

STOCKTALK

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.

Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: russwinter who wrote (20024)	10/15/2004 10:55:43 AM
From: Wyätt Gwyön	Read Replies (1) of 110194

not to mention, the commodity and the equity are not the same thing. skyrocketing oil can drive up miners' costs and reduce profitability. in energy equities, skittish producers that are still banking on $25 crude for the next 20 years can sell forward production and reduce their upside. check out these comments from BRY's CEO... How does the current oil price environment impact Berry’s strategy? Current oil prices are at historic highs, and we are leveraging these prices in two ways. First, we plan to accelerate our drilling program in Utah and selective California assets, spending upwards of $70 million in capital in 2004, up significantly from our initial 2004 capital budget of $50 million. Secondly, we are layering in hedges to capture some of these high crude prices to ensure strong profit margins should oil prices decline. We currently have only $36 million of long-term bank debt, and have a credit facility of $200 million, so we have the ability to make sizeable acquisitions when we find them. ww3.ics.adp.com

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next