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

To: Roebear who wrote (64246)	4/11/2000 10:08:00 AM
From: Think4Yourself	Read Replies (1) \| Respond to of 95453

OT: MOT pulls a YHOO, earning $.01 above estimates. As in YHOO, investors look past earnings game to see Q2 warning. MOT getting creamed and YHOO down big again. Yahoo hasn't had an up day since before earnings. "Buy on the dip"'ers have been getting killed. Glad to be running flat today on what is shaping up to be a big Naz down day. While the tickers are a sea of red, the few greens are mostly "old economy" stocks.

To: Roebear who wrote (64246)	4/11/2000 10:14:00 AM
From: SliderOnTheBlack	Read Replies (1) \| Respond to of 95453

Nat Gas is the ticket - BSNX is "the" gift here & the drillers... I like FLC for offshore NG drilling upside & the oft-mentioned KEG SESI plays; NBR-UTI-PTEN allready a bit pricey imo... Quick recap on BSNX: this is a doubler to year end potentially here and a waltz for 50% upside; equal to buying EOG back at $13 7/8ths, or $8 7/8ths UPR etc - jump on it asap ! ..17 debt/equity ratio - THIS makes this one of the rarest of rare E&P companies - one with a PRISTINE BALANCE SHEET - virtually no debt - huge insider ownership (6.4 M shares held by insiders + 12 M float). Find another E&P company that meets these guidelines: 1. .25 or less debt/equity ratio 2. 1.25 price to book valuation - or less 3. Earning $1.00 eps (run rate) presently 4. $3.00 per share , or more cash flow present run rate 5. Market cap of $200M+ 6. Off at least 50% from its 52 week high and showing qtr over qtr & year over year increases in cash flow and earnings. I am pretty sure there is NOT another one... "THAT" = an ANOMALY buying opportunity. Load up and sit and wait. Volume has moved from 200K + daily to around 100K - sold off on production & drilling disappointments which were completely TEMPORARY in nature. biz.yahoo.com <<Cash flow from operations before working capital changes increased by 57% to $52.8 million, from $33.7 million reported for the prior year. Cash flow per share increased by 30% to $3.17 in 1999, as compared to $2.43 in 1998.>> *Stock traded near $25 last year - and now is near $12 after having based & rallied thru $15 looking like it was going back to its $18 of late, only to retrace again to the $12's here. << increased by 47%, from $48.7 million in 1998 to $71.6 million in 1999, on a 48% increase in oil and gas production.>> <<Operating cash flow before working capital changes increased by 69%, to $14.8 million in the fourth quarter of 1999, compared to $8.7 million reported for the fourth quarter of 1998. Cash flow per share increased by 24%, to $0.78 in the recent quarter, as compared to $0.63 in the fourth quarter of 1998. Revenues increased by 52%, from $12.4 million in the fourth quarter of 1998 to $18.8 million in the fourth quarter of 1999. This growth was achieved on a 32% increase in oil and gas production and a 15% increase in average realized oil and gas prices, calculated on an energy equivalent basis. Increases in production were primarily attributable to new fields brought on-line in the shallow-water Gulf of Mexico during the past year, as the result of the company's active drilling program in the area. The increase in average realized prices only partially reflected improvements in general market prices for oil and gas, due to hedging effects. Fourth quarter 1999 production totaled 8.0 Bcfe, or an average of 87.2 MMcfe per day. Gas production averaged 72.0 MMcf per day in the recent quarter, representing a 33% increase over the same period in 1998. Oil production averaged 2,520 barrels per day in the final quarter of 1999, representing a 28% increase over the comparable period in 1998. On an energy equivalent basis, gas accounted for 83% of the company's production in the most recent quarter and 82% of its production in the fourth quarter of 1998.>> Company should show nice increases going forward in both Oil & Gas price realizations - re: <<During the recent quarter, the company realized average prices of $2.24 per Mcf of gas and $16.87 per barrel of oil, or $2.34 per Mcfe. Comparable amounts for the fourth quarter of 1998 were $2.12 per Mcf, $9.99 per barrel, and $2.04 per Mcfe. Hedges decreased average price realizations by $0.47 per Mcfe in the fourth quarter of 1999 and increased such realizations by $0.14 per Mcfe in the same period of 1998.>> Year 2000 OPERATIONS <<The company expects its net production in 2000 to increase at least 10% over the prior year to a level exceeding 35.75 Bcfe, assuming that no significant mechanical problems or other unexpected events occur (see February 4, 2000 news release). Basin currently has hedging arrangements in place covering approximately 5.7 Bcfe of year 2000 production, which represents less than 16% of the company's total projected production for the period. These hedges include the sale of approximately 151,000 barrels of oil at an average NYMEX price of $25.92 per barrel, 1.2 Bcf of gas at an average NYMEX price of $2.15 per Mcf, and call options covering 3.6 Bcf of gas at an average NYMEX price of $2.50 per Mcf. The company may hedge additional production volumes in the future, but until it does so its realized prices for most of its production will depend on market conditions. The company anticipates that its net capital budget for the year 2000 will be between $70 million and $85 million. The company expects to fund its capital expenditures in 2000 primarily with cash flow from operations, but also has available approximately $50 million of unutilized capacity under its $90 million revolving line of credit.>> 10% expected increase in production with much higher price realizations for both Oil & Gas should increase cfps & eps considerably from Q4 levels. Negative hedges have expired - per above; only 16% of production hedge going forward - this is a significant plus for BSNX. Stock has allways enjoyed a premium multiple due to its low debt - clean balance sheet and will again. Expiration of poor hedging and strong increases in cash flow, eps and production in a positive commodity price environment - especially for NG - with BSNX's 80%+ Nat Gas balance should return BSNX to that $16-$20 level with any surprises via the drillbit providing the catalyst to return to that mid $20 level imho. With all the high debt, problem laden companies out there - this one is as clean as a whistle and a near Nat Gas pureplay with everything turning to the positive here. It is THE laggard E&P play imho... Load up - but, be patient; this one will move on Institutional buying - load it here and wait; this see's the high teens post the Q1 release in a $3 Nat Gas price environment imho. Anyone get some BHI yesterday ? - got a taste, not enough however... PS - if we get some nice API's tonight; everyone wave "bye - bye" to Postal and lets make sure we all give him a great big "BEEP BEEP !" as the Train passes by (VBG) ~