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

To: kodiak_bull who wrote (94352)	11/8/2001 11:56:28 AM
From: Edmond Katonica	Read Replies (2) \| Respond to of 95453

Have a little faith. I'm going to try posting here more often.

To: kodiak_bull who wrote (94352)	11/8/2001 4:19:46 PM
From: russet	Read Replies (1) \| Respond to of 95453

http://quote.bloomberg.com/fgcgi.cgi?ptitle=Energy%20News&s1=blk&tp=ad_topright_energy&refer=topfin&T=markets_bfgcgi_content99.ht&s2=blk&bt=ad_position1_energy&middle=ad_frame2_energy&s=AO_rb5xLNQXBhY2hl 11/08 14:24 Apache Plans to Cut 2002 Drilling Budget 70% on Gas Prices By Jim Kennett Houston, Nov. 8 (Bloomberg) -- Apache Corp., an oil and natural-gas producer, plans to cut spending on drilling next year by 70 percent, blaming wide swings in gas prices caused by traders such as Enron Corp. and Dynegy Inc. The company will trim spending to $300 million from $1 billion this year, Chief Executive Officer Raymond Plank said in an interview. Gas on the New York Mercantile Exchange reached $10.10 per million British thermal units in late December and touched $1.76 per million British thermal units in September. The market for gas derivatives is 15 times the cash market for delivery to customers, and broad price changes make it difficult for oil and gas companies to set budgets, Plank said. ``You've got a 150-pound tail wagging a 10-pound dog,'' Plank said. ``You can't predict what your cash flow may be. Therefore, your budgeting is difficult.'' Shares of Apache rose 64 cents to $51.37 in midafternoon trading. Before today, they had fallen 28 percent this year. Apache, Dynegy and Enron, the biggest energy trader, are based in Houston. ``We can always go back and take another look at (spending) later,'' Apache spokesman Tony Lentini said. ``We look at our (budget) regularly, and we're known for moving pretty quickly.'' Enron, whose plunging stock price forced it to begin merger talks with rival Dynegy, today restated earnings for more than four years because of losses from partnerships under investigation by the Securities and Exchange Commission. Fearing an Enron collapse might cripple the gas-derivatives market, Apache said yesterday it traded out of most of its gas hedges, making $70 million so far. ``Apache is trying to conserve cash and retain the maximum amount of flexibility,'' said Irene Haas, an analyst at Sanders Morris Harris Inc. ``Apache has been traditionally very nimble in responding to these cycles. There's something to be said for being cautious and conservative when the visibility is bad.'' Haas rates Apache ``accumulate'' and doesn't own its shares. Nymex gas has averaged $2.7 per million British thermal units so far this quarter, down almost half from the same time a year earlier. It rose 6 cents to $2.93 per million British thermal units in midafternoon trading.