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

To: Think4Yourself who wrote (82387)	12/21/2000 5:27:55 PM
From: Razorbak	Read Replies (2) \| Respond to of 95453

What kind of Q-logic is that? You can't be looking at the same RRC I am... Companies like XTO, which were highly leveraged last winter, have dramatically strengthened their balance sheets, and their stock prices are reflecting the improvements. RRC's appears to have actually become worse in this period of record high commodity prices. Excerpt from the PR announcing RRC's 3Q results: Capital expenditures during the quarter increased to $13.3 million, requiring only two-thirds of the Company's internal cash flow. These expenditures funded the drilling of 78 wells and 13 recompletions, all but two of which proved successful. In the first nine months of 2000, a total of $33.6 million in capital was spent to drill 130 wells and recomplete 47 others. These expenditures resulted in more than 40 Bcfe of reserves being placed on production at an average development cost of $.70 per Mcfe. Based on current futures prices, the Company estimates that its capital program is achieving an internal rate of return of better than 50%. Capital expenditures in the fourth quarter are expected to approximate $19 million, bringing the total for the year to $53 million. This would represent a 38% increase from the 1999 capital program. While capital expenditures increased, debt continued to be reduced. Debt and fixed income securities fell by $33 million during the quarter as bank debt dropped $16 million, and $17 million of fixed income securities were retired in exchange for 2.8 million common shares. A $4.3 million gain was recognized on the exchanges as the fixed income securities were reacquired at a discount. In the first nine months of the year, the Company reduced debt and fixed income securities by $104 million, as stockholders' equity rose $35 million. At September 30th, the Company had 45.9 million shares of common stock outstanding. Announcing the results, John H. Pinkerton, the Company's President, said, ``Much has been accomplished since the beginning of the year. Production, cash flow and net income have all steadily increased. More than $100 million of debt and fixed income securities have been eliminated. Our capital expenditure budget is once again growing and our drilling is yielding increasingly attractive returns. In the fourth quarter, we expect to see a far clearer picture of what has been achieved. With production increasing, a lower cost structure, and a sharp jump in realized prices, we expect earnings and cash flow to reach record levels.'' Thomas J. Edelman, the Company's Chairman, said, ``After an extremely difficult two years, the unstinting efforts of our employees are beginning to show significant results. Our cost structure and debt levels have been reduced substantially and improvements have been made in every aspect of the business. With rising production and a majority of our production through year-end 2001 hedged at prices above $4.00 per Mcfe, we should be assured excellent results for the foreseeable future. We plan to utilize what is expected to be the highest net income and cash flow in our history to further reduce debt while increasing our development budget. The critical focus for 2001 will be to grow our reserve base. If we can succeed in overcoming that challenge, the Company will have finally returned to its historical posture of growth and profitability.'' biz.yahoo.com

To: Think4Yourself who wrote (82387)	12/21/2000 5:53:47 PM
From: kollmhn	Read Replies (1) \| Respond to of 95453

JQP- I noticed your soiree into RRC land today and your attempt to dislodge some owners from their poorly concieved RRC holdings. Now, you come back to SI and post blatantly incorrect information about RRC. You claim RRC's balance sheet has worsened. Actually, it has improved dramtically via debt reduction. Youstated that RRC's exploration budget is $.03 per share. That would equal $1.35 million. Fact is their Capex is over $50mm. So I ask you this: Are these comments of yours intentionally mistated or could you really be so ill informed so as to unwittingly post such falsehoods?