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

To: jim_p who wrote (67013)	5/25/2000 9:26:00 AM
From: Wowzer	Respond to of 95453

Thanks Jim for running the contest! I look forward to kicking all of your asses. (ggg)

To: jim_p who wrote (67013)	5/25/2000 9:29:00 AM
From: Terry D	Respond to of 95453

ATTN KEGGERS - upgrade from Bear Key Energy Services, Inc. (KEG ú $11) Attractive Price Target: $11 to $15 Increasing Price Target, Estimates Market Cap: $943 Million Index: NYSE Composite, Russell 2000 Robin Shoemaker - Oil Service & Equipment Record high oil and gas prices are spurring demand for well service and workover rigs. KEG, the largest well service company, is responding to strong demand for its rigs by reactivating idle rigs and boosting hourly rig rates. There are abundant signs that demand for KEG? s rigs will continue to strengthen We are taking our FY01 EPS estimate to $0.30 from $0.25 and our FY02 estimate from $0.50 to $0.70. These estimates are based on an assumed blended hourly well service rig rate averaging $180 in FY01, $200 in FY02, and $220 in FY03. Today the blended hourly well service rig rate is $160. KEG has about 900 actively marketed well service rigs today and another 300 rigs that are ?cold stacked? and not in service at present. Our projections do not assume that the 300 inactive rigs are brought back into service. If demand is strong enough to require the activation of these rigs, then our current financial projections would be increased further. Consolidation of the well service industry, now dominated by two players, has reduced competition. Our price target is now $15, based on an EV/EBITDA multiple of 8 on FY02 EBITDA. Bear Stearns: 6/2000E $(0.24); Q2 $(0.01) 6/2001E $0.25 to $0.30 Consensus: 6/2000E $(0.23); Q4 $0.00 6/2001E $0.35 Consensus Rating: 1.1 (last updated 5/19)