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

To: CommanderCricket who wrote (60461)	2/17/2000 2:24:00 AM
From: Umunhum	Read Replies (2) \| Respond to of 95453

I wouldn't take money out of OEI to put it into XTO. OEI has several advantages over XTO. OEI's market cap is about 4 times bigger and the funds (who really move the market) will buy the bigger companies first. Second XTO debt to equity is significantly higher (XTO's D/E is approx 4 to 1). And the one thing that I can't get around is XTO recently bought property from OEI and is "very excited" about their new drilling prospects. I believe OEI kept the best prospects and sold them the scraps. That said I believe XTO's cash flow will exceed OEI's (XTO $4+, OEI $3+). I think OEI has the better prospects of the two and will get a higher multiple on cash flow. XTO does not have the possibility to hit a field like OIL found recently.