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To: BigBull who wrote (61150)	3/1/2000 10:02:00 AM
From: Think4Yourself	Read Replies (1) \| Respond to of 95453

More info on the Lehman upgrades today. EOG also upgraded by CIBC. Looks like there is more gas in the rally than there is in stores. Money pouring in and volume looking to be much above normal. I wonder if shorts are foolish enough to step in front of the freight train? RESEARCH ALERT - Lehman names 12 E&P firms as buys NEW Y0RK, March 1 (Reuters) - Lehman Brothers on Wednesday named as ``buys' eight large-capitalization and four small-capitalization oil and gas exploration and production companies. Lehman, saying it was initiating coverage of 13 large and 15 small capitalization oil & gas E&P companies, named Burlington Resources (NYSE:BR - news), Vastar Resources (NYSE:VRI - news) and Anadarko Petroleum (NYSE:APC - news) as buys in the first category. Others were EOG Resources (NYSE:EOG - news), Devon Energy (NYSE:DVN - news), Kerr-McGee (NYSE:KMG - news), Noble Affiliates (NYSE:NBL - news) and Union Pacific Resources (NYSE:UPR - news). It also named Barrett Resources (NYSE:BRR - news), Louis Dreyfus Natural Gas (NYSE:LD - news), Stone Energy (NYSE:SGY - news) and Swift Energy (NYSE:SFY - news) as buys in the small-cap group. -- said believes that large-cap shares are being overlooked in this high-technology-hungry market. -- said falling natural gas supply should lead to surprisingly strong natural gas prices this spring and summer. ``We forecast average natural gas prices of $2.72/MMBtu this year and $2.74/MMBtu in 2001 compared with $2.27/MMBtu in 1999,' Lehman added. -- Current high oil prices are not priced into the shares, adding it was forecasting an average oil price of $19/barrel in 2001; down from $20-23/barrel this year. -- The shares trade well below historic multiples after assuming a drop in oil prices to $19/barrel for 2001. A return to historic multiples of forward cash flows (assuming $19 oil) would lead to 55-60 percent average share-price appreciation. ``We think the stocks should be aggressively purchased,' it added. -- said valuations of small cap E&P companies are well below historic levels and resemble late 1998/early 1999 when low commodity prices painted a bleak industry picture. (Note: this article is ``in progress'; there will likely be an update soon.) -------------------------------------------------------------------------------- More Quotes and News: Anadarko Petroleum Corp (NYSE:APC - news) Barrett Resources Corp (NYSE:BRR - news) Burlington Resources Inc (NYSE:BR - news) Devon Energy Corp (NYSE:DVN - news) EOG Resources Inc (NYSE:EOG - news) Kerr-Mc-Gee Corp (NYSE:KMG - news) Louis Dreyfus Natural Gas Corp (NYSE:LD - news) Noble Affiliates Inc (NYSE:NBL - news) Stone Energy Corp (NYSE:SGY - news) Swift Energy Co (NYSE:SFY - news) Union Pacific Resource Group Inc (NYSE:UPR - news) Vastar Resources Inc (NYSE:VRI - news)