Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Think4Yourself who wrote (64834)	4/17/2000 10:08:00 PM
From: Think4Yourself	Respond to of 95453

There is a very knowledgeable poster on Yahoo VPI thread who posted this today: M. L.'s views on natural gas by: danwilson_Yorkshire 4/17/00 3:50 pm Msg: 1956 of 1963 Comments from the Merrill Lynch report on the North American E & P Sector: "Our view with respect to $24/bbl WTI and the likelyhood of continued price strength are similar or our MER peers. Further, North American natural gas prices will probably register historic, de-regulated era prices because of poor production adds in North America, fuel switching, and a 1 TCF AGA storage decline." "We see North American E&P management teams being more conservative. Recent relative stock underperformance has drummed in the advantages of ongoing fiscal conservatism. That means that free cash flow will be used to reduce debt, repurchase shares or make small acquisitions." "North American E&P stock valuations are still at record lows, and most 'Street' analysts probably will need to revise estimates upward." "Fast cycle time projects to exploit under-utilized hydrocarbon resources are disappearing all over the world, not just in North America. But, the relative maturity of the U.S., as a producing province, ongoing industry downsizing, minimal new oilfield services technology gains, and inconsistent capital deployment will keep the N.A. natural gas market tight and somewhat insular, and world oil markets could register historically high prices because of more coherent OPEC and OECD nations with poor conventional production adds. Thus, prices could stay high despite the desire of oil people to spend more." NYMEX gas continuing to look very bullish. XTO and POG appear to be "on sale" today as these are my top "gas plays".