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

To: ItsAllCyclical who wrote (63592)	3/31/2000 5:10:00 PM
From: ItsAllCyclical	Read Replies (1) \| Respond to of 95453

Some HWL facts (microcap, crude heavy E&P) Based on a share price of 6 3/4 you could buy their proved reserves for $2.90 per BOE. They're 80% oil, 20% gas. 35 mil in market cap. Their hedges are small enough and good enough to allow them to take advantage of current prices. I estimate they will probably do $1.50+ in earnings this year. It only traded 4,500 shares today so it's hard to take a big position quickly. Their debt is also high, but I believe it 's manageable considering crude will probably average close to $25 or more this year. From their most recent press releases: Insider ownership: 71% At December 31, 1999, the Company had $82.0 million in outstanding bank borrowings. total proved reserves at year-end 1999 were 41,029 MBOE Estimated proved Oil (MBbls) 34,594 Estimated proved Gas (Mmcf) 38,605 Estimated total proved reserves (MBOE) 41,029 At year-end 1999, Howell's reserve to production ratio was 12.3 years. The Company presently has in place for the year 2000 two costless collars. One costless collar, which was previously announced, covers 1,700 barrels of oil per day with a floor price of $17.25 and a ceiling price of $22.00 per barrel. The other costless collar covers 1,800 barrels of oil per day with a floor price of $18.50 and a ceiling price of $26.00 per barrel. Shares Outstanding 5.47M Current Share price 6 3/4 Total Market Cap= (5.47 * 6.75) + 82 mil = 119 Million Total Market Cap/BOE= 119 / 41 = $2.9/BOE This was once a $20 stock. I'm guessing it'll take out it's 52 week high around 7 1/2 and run to 10+ by summer. Just curious if anyone has looked at this issue before. It seem pretty good on paper for a microcap.