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

To: hdrjr who wrote (55286)	11/23/1999 11:50:00 AM
From: ItsAllCyclical	Respond to of 95453

hdrjr - 100 mil over 3 years is pretty small. This is not OEI specific. Every large cap E&P I follow is down hard. Look at APA, BR, APC, UPR, etc. Which stocks make up the XNG? Just wondering if someone is shorting the index pulling some of these plays down.

To: hdrjr who wrote (55286)	11/23/1999 12:08:00 PM
From: SliderOnTheBlack	Read Replies (1) \| Respond to of 95453

Valuation balances... ie: OEI is now priced to OSX 60-5 level One thing I continually screen for; is when an individual stock gets out of balance-valuationwise with its own subsector, or the OSX index as a general barometer. OEI is at a 3 month low; that is nearly indicative of OSX 60ish levels. It has "better" fundamentals than the driller/service stocks and had far, far over-retraced in comparison to the OSX here. BR APA NBL UPR OEI et al; are presenting some anomalous opportunities on a common sense valuation comparison. The equilibrium of these quality E&P's to the OSX index, or to their own recent valuations and ultimately to commodity prices; will return. UPR just had strong buying strength, an institutional fav' - great financial turnaround story; twice broke to $16 and now ! - with just the pre-API jitters; has retraced back to bottom support of near $13 ! ... these are gifts; opportunities for the individual investor. I also wonder if some funds are quitely building cash positions in the event of any Y2K redemption pressure ? Trimming overall fund positions to much, much higher cash on hand levels ? Nothing on the OSX looks cheap; PGO getting close... some small caps look good... OII still cheap; but that's about it. It is an E&P game here - given Crude Prices; it's too good to be true; what are the Fund Mangers thinking here ? NEV a near pureplay on crude - blows off? Why this weekly dance on the API's ? The week to week inconsistancies are a joke... the overall trend is clearly a draw on storage and supply is being drawndown globally... It pays well to go against the grain... but, its not without its risk. Gotta be a player here... Hell; I'd be a player at these valuations in the E&P's if we were trending up from $17 crude to merely $20 ! - let alone, from $20-22 to $25+ !?!?!?!

To: hdrjr who wrote (55286)	11/23/1999 12:25:00 PM
From: Razorbak	Read Replies (2) \| Respond to of 95453

hdrjr Re: OEI The following excerpt came from the last Q... ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKS. The Company has entered into various derivative financial instruments for its oil and gas production for the years 1999-2000. See Note 4 to the Company's financial statements for a discussion of hedging activities during the third quarter of 1999. It is estimated based upon quoted prices at September 30, 1999, the potential effect of the derivative contracts during the fourth quarter of 1999 is an approximate $17 million net decrease in revenues and is an approximate $3 million net decrease in revenues during the year 2000. Assuming a 10% increase in oil and gas prices, the potential loss from the derivatives contracts would be increased $6 million for the fourth quarter of 1999 and $12 million for the year 2000. Assuming a 10% decrease in oil and gas prices, this potential effect of the derivatives contracts would be reduced by $6 million for the fourth quarter of 1999 and would result in an increase in revenues of $3 million for the year 2000. Razor