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

To: ItsAllCyclical who wrote (58746)	1/20/2000 12:06:00 AM
From: SliderOnTheBlack	Read Replies (2) \| Respond to of 95453

JimL - re: LD/Louis Dreyfus Nat Gas... * Production mix is approx 80-85% Gas & 15-20% Crude Oil * They have only a very small amount of Nat Gas hedged and only thru Q1 here - none the rest of the year & have no Oil hedges in place ! They are staying unhedged as part of their mgmt strategy here. * Solid low risk exploitation & exploration profile. Great drillbit success & well respected in the Industry for this record: Drilled 114 development & 14 Exploratory wells in 1999 with a 92% development well success rate and a 71% exploratory well success rate. - overall a 90% drilling success rate. Company has a strong balance sheet with good liquidity and is expected to make some acquisitions in 2000. Long term debt is only 42% of Firm Value & they have $175 Million unused on their bank line. * SSB just raised their 12 mo price target to $27 and has their highest rating at 1/Buy. MSDW has a "Strong Buy" and a $25 12 mo price target. * 2000 estimates at .92 cents eps & $5.20 cfps * Great upside potential via the drillbit with the Mustang Island #774 having over 150 Bcf potentially - LD has a 50% working interest there; production if successfull, could begin in late 2000. * Great 1999 performance via the drillbit with 170% of production replaced at the low cost avg of approx .75 cents mcfe ! ... they have as much upside as virtually any E&P company in 2000 with their drillbit potential & the fact that if we have the commodity price environment that we appear to be having - they are among the purest "unhedged" plays - allowing all the upside to this Boom 2000 Commodity price run... ........ Now, that wasn't a bad Spamwich was it ?