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

To: ItsAllCyclical who wrote (55752)	12/1/1999 12:38:00 PM
From: Gameboy	Read Replies (3) \| Respond to of 95453

JimL, OEI is definitely exhibiting market weirdness. OEI's heavily hedged on crude and crude's hanging in the mid-20's which in my opinion is the best insurance that it'll be there for awhile, and which will become more and more profitable to OEI as the quarters roll by. Meanwhile, OEI has no hedge on natural gas, which it sold at an average of $2.34 3rd quarter, and natural gas is up 2% to $2.35. Remember, OEI is out to make money the old fashioned way by squeezing blood out of a turnip by lowering it's cost for a BOE down to $10 (from around $13). They're kicking ass and the market just ho-hums. Nevertheless, moneybags VPI has climbed 1/4 point; in general, though, battle-hardened, kick-ass, E&Ps just don't seem to get their proper respect.