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

To: Think4Yourself who wrote (63676)	4/3/2000 12:42:00 PM
From: ItsAllCyclical	Respond to of 95453

Just got off the phone with IR at HWL. It was worth the call. Some highlights. Debt at the end of 99 was 80 mil, now down to 70 mil in 3 months time. Conservatively they expect debt to be 60 mil by the end of 2000. About 50% of their production is hedged, but the collars are $22 and $26 dollars so it's neither good nor bad imho. They expect approximately 20 mil in cash flows or close to $4 per share in 2000. Cap ex was 6 mil in 99, it will be increased to 11.4 mil this year with 30% going to the first half and 70% in the last half. A certain amount of that will be spent on 3D seismic vs drilling. They want to understand what they have in Wyoming. All of their current natural gas production recieves US prices. They are about 75-80% crude production. They are not looking to suspend the dividend anytime soon and Mr. Howell likes it. I suggested they suspend the dividend and buy back the preferred. They are looking at buying back the preferred (approximately 20 mil in value), but there are some issues. They would like to do a stock buyback, but they don't won't to decrease the already small float. As such a stock buyback is unlikely. Also they will most likely not be purchased as they are oil heavy and have heavy insider ownership. Over all I will probably add to my investment. They are still trading for less than $2 cash flow per share at $7 1/4.