Clayton Williams Energy (CWEI) OIL Message Board

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Gold/Mining/Energy : Clayton Williams Energy (CWEI) OIL

CWEI 131.90

0.0%

Apr 25 5:00 PM EST

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To: Buzz Mills who wrote (128)	12/7/1996 5:03:00 PM
From: Buzz Mills	of 1017

The reason R&R's 1997 estimate appears so low ($1.13) is they are using an estimate of $19.75/barrel for crude oil and $2.60 for natural gas, and that is an increase from the $19/barrel they were using in their previous calculations. Although oil probably won't stay in the $25+ range, it doesn't seem at all probable that it will recede to that $19.75 level, especially on average. In the 1996 second quarter, CWEI averaged $19.38/barrel and earned $0.32/share; that compared to the third quarter where they averaged $21.19/barrel for oil and $2.62 for natural gas, and earned $0.45. For the 1996 fourth quarter, with oil averaging $24/barrel and natural gas somewhere around $3.25, if the production numbers of the third quarter hold, CWEI is going to have very, very substantial earnings. To reference the 1996 production numbers go to: techstocks.com

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