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

To: Tommaso who wrote (72232)	9/28/2006 11:18:45 AM
From: energyplay	Read Replies (3) \| Respond to of 206085

CHK may have to opportunity to pick up some unhedged and over leveraged players cheap. I also have a preference for the unhedged producers, preferably with rising commodity prices ;-) However, if prices can swing widely and far under costs of production, I think firms may have to hedge, or be able to shut down and almost go dormant. If energy prices keep having the price swings like natural gas, that will devalue the whole sector, since about 90% of the NG E&Ps can't hedge like CHK and end up with stupid hedges that make Morgan Stanely & T.Boone Pickens rich.

To: Tommaso who wrote (72232)	9/29/2006 1:07:07 AM
From: 8bits	Read Replies (1) \| Respond to of 206085

"If there had not been the warmest winter on record and if there had not been a total bust (so far) of hurricane season predictions, CHK management might look stupid." They put the hedges in at the tail end of last winter. As you may remember natural gas dropped fairly soon after Katrina's spike last year. So far CHK's hedges are looking pretty smart. "But shutting in some production is smart; I wish they would shut down more." Well they can't shut down too much more this year: The Oklahoma City-based company has locked-in prices averaging $9.24 per thousand cubic feet for about 92 percent of its expected production in the second half of the year. biz.yahoo.com