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: Craig Gantner who wrote (227)	12/25/1996 6:17:00 PM
From: Buzz Mills	of 1017

Craig, Thanks for your response. I have thought about the production numbers; in my calculations, for the fourth quarter, I used the production numbers from the third quarter, which are below the average of the first two quarters, although. I am hoping for a surprise in the fourth quarter production numbers. I understand management is comfortable with the analyst's estimates of 0.58 earnings for the fourth quarter. You are correct about the Austin Chalk wells dropping off rapidly, however CWEI improved the returns from their wells significantly and with that has begun improving their reserves this year. The production profiles for the Pinnacle Reef wells are completely different than the Chalk wells--reef wells produce mostly very large quantities of gas (10 Mmcfd would not be unusual) for a very lengthy period of time (years)--some wells drilled in the early 80's are still producing high volumes of gas. I know that in the past Mr. Williams and the board were taking their salaries in stock; I don't know if that is still true. Do you know of analysts who are cool to this stock?? I heard that some institutions disposed of at least some of their stock during the third quarter. If so, they missed a very nice run-up during this fourth quarter. If you know who the analysts are who are cool to CWEI please let me know--I would be interested in finding out why they have taken that stance. I believe that Paine Webber and Morgan Freeman have essentially a neutral stance; some of which has to stem from PW having taken CWEI public in 1993 at $17/share and having seen CWEI stumble for a few years. What I did hear rumored was that when CWEI was able to maintain a price of 17, or better, that some of the larger brokerages would establish ratings for it. CWEI should be close to that point now and so I think the next month and a half may prove very interesting. Latest estimates: techstocks.com Hanifen, Imhoff's new estimate should be out and available as soon as CWEI management comes back to work--next week I think.

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