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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: k.ramesh who wrote (49001)	8/7/1999 5:49:00 AM
From: Ditchdigger	Respond to of 95453

Ramesh,,one you didn't mention-CHK,,,a few numbers I pulled from the second Q PR and conference call(and a few calcs): givens- 1) average sale price of NG was $1.88 per cmf in Q2 2)for every $.10 increase in the price of gas CHK's annual earnings and cash flow increase by approximately $0.10 per share and net asset value increases by approximately $0.50 per share.(quote from the company) 3) there are no current 99 hedges on gas (they have begun hedging April2000-Oct2000) 4)info---NYMEX july gas averaged $2.30 per cmf 5) cash flow from operations was $.34 per share for Q2 Now, if we use the July $2.30 number as the average mcf price in Q3, we have an increased selling price of $.42 per mcf over Q2 (remember we aren't hedged,so we mimic the quote).. .42/4Q's=10.5 cents increase in cash flow over Q2 for Q3..about a 30% increase Q over Q(using $2.30). CHK's reserves are 87% NG..hope this gives you a little info on the impact on earnings from higher NG prices....Aug average NYMEX price $2.617...CHK appears to have gone back and filled the gap--I own the stock..DD oilworld.com