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

To: Ed Ajootian who wrote (38086)	1/4/2005 9:14:22 AM
From: jim_p	Read Replies (1) \| Respond to of 206093

Ed, Back when I was doing oil and gas financial reporting, the rules called for using the price as of 12/31/?? and were not adjusted if the price fell before you reported. I'm not sure if they even have to write down the reserves in Q1 if the prices are lower at 3/31, but I suspect they might want to do this?? Lower NG prices will hurt EP, but most for their cash flow comes from the pipelines. Last time I looked at EP the cash flow coverage after cap-x required to just maintain their production was a lot lower than 1.9:1??? If they don't spend the minimum cap-x to just maintain production they place themselves in a self liquidation position on their oil and gas properties. In addition the cap-x to maintain the pipelines has been deferred due to their financial problems and at some point they will have to play catch up. I didn't feel EP would survive, but 6-8.00 NG may have helped them out since my last look??? Hope that helps??? Jim