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: Razorbak who wrote (55292)	11/23/1999 12:33:00 PM
From: Think4Yourself	Read Replies (1) \| Respond to of 95453

More foolish EnP management hedging going into a period of strengthening fundamentals. Even the EnP managements didn't believe what was obvious to posters on this board. Well, at least NG prices are helping OEI, for the moment. BTW, volume on OEI has dried up, but this happened earlier today: Tuesday November 23, 10:29 am Eastern Time BLOCK TRADE - Ocean Energy 304,500 at 8 off 7/16, crossed by Lehman Brothers

To: Razorbak who wrote (55292)	11/23/1999 1:40:00 PM
From: SliderOnTheBlack	Read Replies (2) \| Respond to of 95453

OEI - various derivative financial instruments They produced 77 M BOE last qtr - that 5,000 boe per day contract over a couple of years is 500K boe per qtr vs. a total production of 77M boe per qtr - no major impact... On their derivatives per Razors post; The news was out and known from September; ie: the "additional" move in crude from that point - for ea. "additional" 10% move, it will impact revenue by $6 M, or 3% of total revenue in Q4? For year 2000 that $12M potential factor for Ea. 10% is 2% of year 2000 revenue... Not a company breaking hedge imho. $30 crude (IF SUSTAINED !?!) = a "potential" decrease in revenues of what ? - 6% of year 2000 revenue ? I'll take $7ish OEI for that risk - and any upside production that is not hedged; will get the impact of $30 crude if seen... a small upside surprise in production, or any discovery upside via the drillbit can offset the entire negative revenue impact of those derivatives; but they certainly are not a positive here however... just not the reason for the selloff imho. Their recent high impact discoveries have been discounted here as well; as has their upside via the drillbit. JQP - notice that RRC &CRK whom are heavilly hedged here are under no institutional selling pressure - vs. TMR ? Hedges work both ways... not that TMR is not a buy here however... Actually; a well hedged gas play (say heavilly hedged in the $2.75-$3.00 range) is a hell of a buy here potentially...