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

To: Fun-da-Mental#1 who wrote (57051)	12/16/1999 2:31:00 PM
From: IndioBlues	Respond to of 95453

Dow exercises $450 mil. in warrants for SLB shares. <eom>

To: Fun-da-Mental#1 who wrote (57051)	12/16/1999 2:43:00 PM
From: ItsAllCyclical	Read Replies (1) \| Respond to of 95453

>> Where are the E&P earnings? Oil and gas prices were good last quarter, but it seems the money didn't come through to the bottom line (unless I just happen to be following a bunch of losers). We expected a time lag with the drillers, but why are the E&P's having such a hangover? It's gotten to the point that some of the small companies are collapsing. Have we seen the worst? Any thoughts? << Your statement almost made me laugh. I think you must invest in solely debt heavy, small cap E&P's because PXD, OEI, APC, NBL, VPI etc blew away estimates - especially when compared to service stocks. Now is the time to be playing the big cap E&P's (NBL, EOG, BR, PXD, OEI). Notice most of the big cap E&P's are up strong today while the small caps continue to lag. These big caps are still steals here. Until most of them rise another 20-30% I wouldn't even consider any small caps, although I'd make an exception for XTO, HSE and RGO (small, but not micro's like MEXP etc). As for the small caps collapsing what do you expect with so many weak hands...

To: Fun-da-Mental#1 who wrote (57051)	12/16/1999 8:15:00 PM
From: Gameboy	Read Replies (2) \| Respond to of 95453

Oil and gas prices were good last quarter, but it seems the money didn't come through to the bottom line Good question. Third quarter oil prices were good - they averaged $21.71 barrel. Third quarter, RRC realized $16 on oil but hedging cost them another $3, so they took $13 to the bank and out of that they had to pay operating expenses; that's a far cry from taking $26/barrel (today's price of oil) to the bank. Fortunately, for RRC although scheduled somewhat in advance, their contracts expire every month. Jiml's right of course, several E&P's shot into the black 3rd quarter. The market's obviously saying that $26 oil is too good for oiler's to last or the share price of E&P's would be multiples of their 52 week lows (based on $10 oil) instead of being barely above them. As investor's, we can wait - time is on our side. There's a peaceful satisfaction about watching the money roll in.