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To: Evolution who wrote (71050)	8/16/2000 7:23:23 PM
From: The Ox	Respond to of 95453

Frost Securities initiates SLB with a HOLD 4/3/00 4/18..upgrades to BUY after SLB drops 10 points or so... 8/16 downgrades after move up 15 points.... Ring the cash register...pay some taxes! NEXT.......

To: Evolution who wrote (71050)	8/16/2000 7:24:27 PM
From: BigBull	Read Replies (2) \| Respond to of 95453

Evo, SLB breaks out of a 6 month sideways consolidation and it's a sell based on Frost? Well allright then, sell! False breakout! I guess ta is just vodoo after all, but damn! Breaking out over a SIX MONTH consolidation is bullish. I just don't know any more. Maybe Frost has some pissed off clients that want to get in? Wanna bet if it goes down 10 bucks they'll make it a strong buy again!

To: Evolution who wrote (71050)	8/16/2000 7:24:33 PM
From: Big Dog	Read Replies (3) \| Respond to of 95453

Hi guys...I haven't had a chance to follow the messages on the baord the last couple of days. But I saw KEG get mugged today...yuck! Here is what Dain has to say: KEG'S BUSINESS CONTINUES TO IMPROVE: EPS REPORT LIKELY TO BEAT CONSENSUS In the March quarter, the company was averaging approximately 46k-46.5k hours per week for its workover rig fleet. That moved to 47.5k-48.5k in the June quarter, which was a nice and significant improvement. Since early July, however, we have seen a step-change hours worked averaging more than 52k hours through this quarter. \|\| \|\|As a result, utilization is very high with customers on the waiting list for rigs in many operating areas. We are hearing from E&P companies who have workover and remedial work planned but cannot get a rig for days and sometimes weeks. \|\| \|\|As a natural progression of this, we are seeing rates increase. Adding to this is the likelihood that management will institute a price hike in addition to the normal strength in margins from the tight supply/demand balance. \|\| \|\|The company reports earnings for the fourth quarter ending its July fiscal year on Monday, August 21, probably before the market opens. The Street is looking for a loss of ($0.01). We are at break-even. We are highly confident the report will beat the Street. \|\| \|\|Since the secondary offering in June, the stock has lagged, probably as a result of some investors who played the deal and then sold the stock when it and the OSX didn't immediately rush to new highs. It still seems to be shaking off some of the technical effects of that drop. Monday's earnings report should have a positive effect. We recommend buying the stock in front of the earnings announcement.Stock Opinion Our price target on KEG remains at $15.50, as the discount versus its peer group should narrow with the deleveraging of the balance sheet and dropping debt from approximately $857 million in 1999 to approximately $575 million post-deal. Our $15.50 price target is based on a 12x enterprise/EBITDA multiple for calendar 2001 results. With the peer group of companies trading at 11x 2001 CFPS estimates and 11x enterprise value/EBITDA, our valuation target is reasonable, in our view. KEG shares are currently trading at a 35% discount to its peer group 2001 CFPS valuation, indicating significant relative as well as absolute performance potential.

To: Evolution who wrote (71050)	8/16/2000 7:30:35 PM
From: Evolution	Respond to of 95453

Merrill lifts oil forecasts www2.marketwatch.com "Merrill Lynch raised its third and fourth quarter forecasts for WTI prices per barrel to $29 and $25. Previously, they were $26 and $23, respectively. The revision is based on tighter-than-expected global oil balances as reflected by a "significantly smaller-than-expected" rebuilding of petroleum reserves. Merrill's 2001 and 2002 price forecasts remain at $23 per barrel. "On a very near-term basis, we do believe that Saudi Arabia is uncomfortable with prices above $30, as are the G7 nations, raising the prospect of a supply response on-or-ahead of the September 10th OPEC conference," the research note said. September crude futures (CL=U0) closed up 15 cents at $31.82. The Phlx Oil Services Index ($OSX) is now up 2.9 percent, after seeing earlier losses (see 10:36 item). "