Silicon Investor (SI) -- The First Internet Community

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.

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

To: Gottfried who wrote (51853)	9/24/1999 9:12:00 PM
From: Think4Yourself	Read Replies (1) \| Respond to of 95453

Unocal burned by hedging decisions quote.bloomberg.com El Segundo, California, Sept. 24 (Bloomberg) -- Unocal Corp.'s third-quarter earnings estimates have fallen 28 percent from a month ago because the oil exploration company placed bad bets in options markets on the price of oil. Options market hedging cost it about 9 cents a share in the third quarter, Unocal said. Average third-quarter estimates of El Segundo, California-based Unocal's earnings have fallen from 25 cents in August to 18 cents now, First Call Corp. figures show. Unocal made 2 cents in the third quarter of 1998. Unocal said it was caught off guard by the rapid rise in oil prices that began in March. Oil prices were near $10 a barrel in December on the New York Mercantile Exchange. They have averaged $21.53 so far in the quarter. Unocal, while not releasing specific details, said it agreed to options contracts that committed it to selling oil at fixed prices in the third quarter. The fixed prices were much lower than market rates in the quarter, Unocal said. ... Analysts said they expect a ``significant rise' in oil exploration costs, caused by a number of dry holes, to further reduce Unocal's third-quarter profit. Unocal expects to release third-quarter earnings on Oct. 26.