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

To: ChanceIs who wrote (59323)	1/28/2000 9:58:00 AM
From: kormac	Respond to of 95453

Chance, As I read over the Simmons' Houston Energy Institute article, and the Norris article on NYTimes today, it strikes me that given Simmons' observation regarding the oil price being set by futures traders, and that these traders mainly listen to sound bites and read the daily press, then it is significant what is said in WSJ and NYTimes, as these may be their sources over the morning coffee. Slider has commented that a deluge of articles of Norris type will finally change the minds of energy analysts in regard price dropping substantially this year. I have seen the Saudi minister also comment on the problem of futures traders setting prices and wanting to set up new system for avoiding this. OPEC and Mexico, Norway, and Venezuela are quite aware of this issue, I am certain. This leads me to believe as Slider has pointed out, that the producing countries will hang tough. best, Seppo

To: ChanceIs who wrote (59323)	1/28/2000 2:50:00 PM
From: Brent Hogenson	Read Replies (4) \| Respond to of 95453

A couple of predictions from Matt Simmons: I will predict that 2000 WTI oil price will end the year over $30 U.S. So, what will gas prices be at the end of this year? I would not be surprised to see prices move ever closer to $3 base (in U.S. Dollars). The end of year price will be heavily influenced by the weather next December, but since you need a number I will guess it is $3.25 per mcf at the Henry Hub. simmonsco-intl.com Winkman - comment on your post #59330 Gas production in the fourth quarter is expected to average more than 330 million cubic feet of gas per day (MMcfd), representing a 24% increase over the fourth quarter 1998 production rates of 266 MMcfd. XTO did $1.03 cash flow last quarter ( 3rd 99 ) on 288 MMcfd selling gas at $2.32, now they're producing 330 MMcfd. At this rate they can do $5 a share cash flow for 2000. Their debt to equity ratio is what's holding them down - right now its at 3.7.