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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: jim_p who wrote (30063)	2/19/2004 11:17:31 PM
From: energyplay	Read Replies (2) \| Respond to of 206089

Sounds like EP might go to around $2-3 soon, as more insituional holders try to edge out the door.... If say Venezuela were to shut down even more, with crude at about $42 and NG at $7.00, could they make it ? What's you assesment of EP as a short candidate ?

To: jim_p who wrote (30063)	2/20/2004 8:11:46 AM
From: Think4Yourself	Respond to of 206089

They had 20 Billion in debt and they borrowed billions more to buy back stock? Tell me you're joking! Actually, I see that now. It looks like the longs are pinning all their hopes on the Mariner well. It took me awhile to realize this was the well Canadian Superior wanted to drill to test that massive field they discovered near Halifax a few years ago. We talked about it extensively at that time. I must admit that if it turns out to be good it will send SNG through the roof, but I can't see it having a major impact on EP due to the size of their problems. How much revenue can you get from one well when you have to give half of it to another company? And how do you get out from under that much debt when you can barely pay the interest, are actively selling revenue producing assets, and your wells are running dry almost as soon as they are drilled? I did notice that 60% of their E&P assets are held by a wholly owned holding company, El Paso Holding Properties I think is the name. There must be a good reason for this but I do not have enough business background to know what it is. Seems they could potentially bankrupt that company to get out of some debt but I have also read that all the loans use the pipelines as collateral, implying the banks never trusted the reserves numbers to begin with. This is pretty complicated but I agree with you that this company is dying. Just looking at the income statements or cash flow statements for the last year shows a very clear and strong deterioration in fundamentals. It is inescapable and indisputable.