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Gold/Mining/Energy : Range Resources (RRC) -- Ignore unavailable to you. Want to Upgrade?

To: Bob Rudd who wrote (66)	5/11/2000 6:48:00 PM
From: David Lee Smith	Read Replies (1) \| Respond to of 82

I still believe that RRC is a strong value. It sold for $6 last year when energy prices were low and they increased production, reserves and cash flow and now the value is less than $2. They have some attractive exploration plays in the Gulf of Mexico with strong partners (BP/Amoco) and they have an interesting energy finance subsidiary that adds to the mix. I looked at the proxy statement and found nothing out of line with industry salaries, except for management that is terminating after their contract expires. It seems that several management members will not have their compensation packages that they received as "golden parashutes" from a prior acquisition. Thanks for the into to Enterprise Value. It certainly is a nice measure to evaluate near-term value, but it does not address the rate of de-leveraging. Obviously, a company rapidly de-leveraging will increase its Enterprise Value. RRC is deleveraging and that is part of its story. I still like cash-flow per share because with long lived reserves, after the debt is repayed in 6-10 years, the cash flow will still be there. I'm looking at a 5-year investment here, not a six-month trade. Obviously if it had an attractive Enterprise Value, it would be taken over quickly.