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

To: SliderOnTheBlack who wrote (83001)	12/29/2000 10:44:11 AM
From: richard badauskas	Respond to of 95453

As a relative late stage speculation have taken a punt on TXLI. Third qtr free cash flow at .59 cps. My guesstimate is that this could jump up to about .80 cps in this qtr. Next years production of gas forecast to increase to 5.8 BCF and oil to 1.2M bls. With 3 qtr earnings based on NG under $4.00 and a very tight float (2.30M out of 6.67M but fully diluted in the future for debt conversion 13M. TXLI has a fully diluted market cap of $97M. On annualized basis assume 1.3M BLs sold at US$25 per barrel and 5.8BCF gas sold at an average US$4.50 MCF we get a 2001 sales of US$58.6M. On operating margin of 40% free cashflow per diluted share is $23.4M ($1.80 per share) BUT if NG stays hyper speculative into very late winter earnings could be much higher. Using multiples of 6 times free cashflow TXLI could pop over $10 per share. If NG stays considerably above $4.50 MCF then earnings will scream over the quoted figures. Any comments??