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

To: Ditchdigger who wrote (23006)	12/20/2000 8:09:14 PM
From: JoeinIowa	Read Replies (1) \| Respond to of 29382

DD, After blowing the latest 5 inches of snow off the driveway I have been able to look at the CHK news even closer. I was having some trouble with the Cash Flow number. From what I can understand their $600M number is based on $5 NG. Given about 40% of their production is hedged in that area that leaves say 50% to be either higher or lower. Given thats about 85 Bcf/year then every dollar that NG is over $5 adds $85M to the cash flow and about .30 to earnings. If NG settles around $7.5 for the next year add another $200M to cash flow and .65 to earnings of $1.50. Not a bad business to be in at the moment. I don't know how the market will react but its hard to sell this stock with those numbers. Joe