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Strategies & Market Trends : Three Amigos Stock Thread -- Ignore unavailable to you. Want to Upgrade?

To: LAWRENCE C. who wrote (22350)	11/23/2000 11:01:19 PM
From: JoeinIowa	Respond to of 29382

CHK - Analysis and commentary. As most of you have probably read on the CHK website, www.chkenergy.com, they have a good slide show about the company. Looking at slide 18 which shows revenue, cash flow and earnings per share at various NG prices I took that chart and extrapolated out to the current price of NG. Here is what the new chart looks like adding $6 and $7 NG prices. I'm sure at some point they will hedge forward. NG @ 3 4 5 6 7 Rev. 467M 633M 800M 970M 1140M Cash 246M 400M 560M 720M 880M Flow CF/ 1.42 2.31 3.24 4.10 5.00 Share Earn/ .35 .88 1.44 1.94 2.44 Share All of the above is very positive especially with NG sitting around $6.50. I would be surprised if it would spike much higher as temperatures are going to moderate back into a normal range and it is only the end of November. My two questions reading the slide show were: 1) Does this include Gothic which adds about 20% to revenues and profits starting in January(assuming deal closes)? 2) Does the earnings per share numbers they have include provisions for taxes? The main problem I see is that the stock is trading in synch with NG futures and it seems to me it should be much higher. I'm afraid if NG prices go back down to the $5 level the stock will follow and that does not make any sense. Joe