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

To: ItsAllCyclical who wrote (64514)	4/13/2000 5:19:00 PM
From: chowder	Read Replies (2) \| Respond to of 95453

More on SFS.... Hi Jim! With your permission, let me give you a quick snapshot of SFS, I'll let Q fill in the rest since he has credibility with his fine research ability. SFS made an acquisition in May 99, (Snyder Oil), which will allow the company to deliver up to 30% volume growth for the year. They made the purchase at the right time, (when the price of crude was down). The company operates in the Permian Basin and the shallow waters of the Gulf of Mexico. They have significant international exposure as well. They have active exploration and drilling going on in Indonesia, Argentina and Gabon. Other discoveries and exploration licenses are located in Ecuador, China, Malaysia and Brazil. Merrill Lynch has SFS as one of their two top E&P picks. This from the ML analyst in an article from Individual Investor Magazine: >> Santa Fe Snyder, created by the merger of Snyder Oil and Santa Fe Energy Resources in May 1999, is also an E&P company, with a U.S. exploration focus in West Texas, the Rocky Mountains and the Gulf of Mexico. Shares, currently at $9.25, sell for under two times book and 2.5 times revenue. Herrlin forecasts that Santa Fe Snyder will generate cash flow of $2.64 per share for 2000 and $2.72 for 2001, compared with $1.72 in 1999. Herrlin added in his note that, ?at 3.1 times (now 3.5 times) discretionary cash flow per share, a buyback or tender makes good sense,? and concluded: ?We would buy at these levels and wait for the market to recognize improved commodity-based cash flow.? << individualinvestor.com Solomon Smith Barney states that SFS has "significant exploration upside potential resides in several prospects teed up for 2000 from China to Indonesia to Brazil and several regions offshore West Africa." The company has announced a stock buy-back plan in 2000. The analysts like that move. Thanks for your contributions to the board. dabum