Here is a collection of info on Clayton Williams:
From: NLKR87A David Cook Time: 3:32PM ET
Here is the latest on CWEI. Talked to Lajuand Holder -
Director of Investor Relations on Friday priorto close.
1) CWEI should announce an agreement on a 3D drilling
partner for their Cotton Valley Lime Pinnacle Reef Play
prior to the 3rd qtr.
2) Clayton and members of the management team will travel
during the last 3 weeks in Sept to brief selected analysts
and brokers on the prospects of their company.
3) Has had some contact with Oppenheimer. Will probably not
receive a new rating from Paine Webber until the stock hits
$17 a share.
4) Company producing over 6500 bbls of oil a day.
5) May increase the number of rigs from 3 to 2.
6) Exploring new drilling techniques. Would result in a
major news announcement if they hit a new record.
* Institutions bought another 554,000 shares of stock the
last qtr.( See strategic Investor Report )
* Clayton and three other directors opted to be paid in
shares again even though the stock is now trading at 10.
* Company showing a similiar pattern - makes a big run then
pulls back for two to three weeks and then hits another new
high.
Watch for earnings upgrades for 3rd qtr. DAVE COOK
From: NLKR87A David Cook Time: 11:37PM ET
CWEI will significantly exceed analyst estimate of .17 for
the third quarter. Here is what I am looking for:
( .32 + .16 ) + .15(.48) + .08 + .02 = .65 Estimate
1 2 3 4
Assumptions-
1) Company will not take a charge ( .16 ) for the third qtr.
No charge expected according to investor relations. Company
will meet its internal estimate of 6500 bls of oil a day.
Last qtr, they exceeded this estimate.
2) The price of oil is at $25 per bbl - a five year high.
The avg price of oil last qtr was about $19.78. Assuming
only a 15% increase in the price of oil. Currently, it is up
over 26%.
3) The company lost about $950,000 on hedging operations
during the last two quarters. Most of the loss occurred
during the second qtr as oil prices continued higher.In the
3rd qtr, the company has only hedged about 65,000 bbls.
Since the price of oil is much higher and the company has
opted not to hedge prices in " the immediate future ", I am
looking for a gain of about .08 from not hedging.
4) Company has paid off an additional 7 million dollars of
debt plus the company took a charge which will lower the
depletion rate. Gain should be at least .02 cents per share.
The latest First Call estimate that I have is dated 7 Sept
and has an estimate of .17 for the 3rd qtr.
THUS - my estimate of .65 exceeds consensus estimate by
almost a factor of four. Even if the company falls short of
my projection, they should easily double the consensus
estimate.
For these reasons, I think CWEI will trade at least at $20
by the end of February 97.
DAVE COOK |
