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

To: Nathan who wrote (53564)	10/26/1999 11:21:00 AM
From: oilbabe	Read Replies (2) \| Respond to of 95453

NOAA just came out with three month forecast of warmer than normal NE and midwest. Maybe this is the catalyst to drive us out of this trading range.

To: Nathan who wrote (53564)	10/26/1999 11:29:00 AM
From: ItsAllCyclical	Read Replies (2) \| Respond to of 95453

Some info on MHR in no particular order.. MHR is a 60 mil E&P company with debt/equity around 4 first brought to my attention by Slider. The guy from IR called me back after I sent him some email. Their large debt is primarily due to acquisitions. Their cap ex budget for 99 and 2000 (although not set) will probably be around 20 and 25 mil respectively. Their 98 budget was 31 mil so these amounts do not represent a sizable increase. They have about 400 drill sites that they are looking at. Their production is about 70% gas, 30% oil. They have just started hedging some of their gas production at $3. They are considering hedging up to 40-50% of their gas production, but probably not more than that. Their reserve life is very long (13-15 years). It seem like the guy from IR was pretty much willing to answer any question. If you're interested call. While I don't think there's much downside here, I also can't see what makes MHR significantly better than any other E&P investment. Compared to their market cap their cap ex budget is large, but it not greatly increasing from 98 to 99 or 99 to 2000. I'll need to look at their cash flows. Earnings are out on friday.