Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Wallace Rivers who wrote (24931)	10/4/2006 7:14:48 PM
From: Madharry	Respond to of 78735

i would say that just about everything i own now is underwater. pwe is not an oil service stock but a producer. In addition it owns rights to some 4 million acres which it plans to farm out for a portion of the revenues. The way its been beaten down is a little suspicious to me. I know that there is talk of amending the way cash flow of the trusts are being reported and there is conjecture that this will affect the distributions in some negative way. I have not seen any comments by management in regard to this issue. I suppose there is always the possibility that the canadian government will rethink the trust structure as well. But perhaps its all due to leveraged entities coming under the pressure of stock declines and withdrawals. My latest purchase of pwe today resulted in a net yield after withdrawal of taxes of 9.5% paid out on a monthly basis. assuming an exchange rate of .90 and no change in the distribution. According to the ceo their current reserves are approximately 20 years and they distribute 50% of cash flow. OF course they are replacing reserves on an annual basis. Do your own dilligence but unless something crawls out from under a rock I think it should be in good shape. I also own pds in a retirement account. dont see anything wrong with that one either. But who knows. The metal stocks are faring worse if anything than the oil stocks. I guess I should start rooting for cold weather and hurricanes.

To: Wallace Rivers who wrote (24931)	10/8/2006 5:44:47 PM
From: Paul Senior	Read Replies (2) \| Respond to of 78735

Wallace Rivers: regarding oil service sector. I've no suggestions for swapping out of PDS. I'm underwater in it also though; I have no intention of exiting position. The oil service sector's pretty broad. Fwiw, I bought a few shares of CKH last week. Whereas PDS is, as I understand it, Canadian drilling rigs, CKH is offshore and more geographically dispersed. Offshore rigs are more expensive and in maybe in short supply, and maybe not likely to be mothballed as could land-based rigs. So that servicing part of CKH business might be okay. CKH is a broadly diversified services supplier. Which could mean its diversity of business might be safer (than PDS) if oil prices continue down. I suspect also the reverse -the stock may not appreciate as much as other companies like PDS in the sector when/if the sector comes back into favor. finance.yahoo.com Also, fwiw, I upped my few shares of ESV a little. Ditto NBR.

To: Wallace Rivers who wrote (24931)	10/8/2006 8:07:02 PM
From: Brinks	Read Replies (1) \| Respond to of 78735

Re: Oil Service Stocks I did a write-up for another forum, ValueForum, in July, 2006. Here is my write-up: Essential Energy Services Trust is a new business trust with its recent spin-off in May 2006. Essential is an independent oilfield services organization based in Calgary, Alberta. Company provides essential production services to existing oil & gas wells in BC, Alberta & Saskatchewan. The trust services are centered on activities that maintain and enhance production from producing oil and gas wells and related facilities. Thus the company’s revenues come from operating budgets as opposed to capex budgets. Therefore the Company’s revenues are less affected by changes in decisions involving drilling activities. IMHO this is a very big positive. Most oil servicing companies are focused on drilling activities. The Company believes that by focusing on “essential” services they will be less exposed to the cyclicality of the drilling cycle. Quarterly Revenues were up 364% to $ 19.5 Million at 3/31/06 Yield 12.1% (Most service trusts yield around 8%) TSX- ESN.un Symbol US EEYUF Basic Units Outstanding as at May 31, 2006 27 Million Market Cap $ 196 Million US Very High Growth Company—See Business Brochure. Overview of Company------ Business Brochure essentialenergy.ca Quote in U.S. Dollars tinyurl.com Monthly Distribution per Unit $0.083 CDN or annual $ .996 CDN $ .0735 US or annual US $ .8825 Distribution Payout Ratio Objective 60-65% Website www.essentialenergy.ca • Independent Oilfield Services Trust • Accretive Growth Through Aggregation of Smaller Operations • Strong Balance Sheet • Board and Management in place, Calgary based • Focused on Essential Production Services STRATEGY • Continue to aggregate smaller operators • Maintain and strengthen core brands • Expand new equipment acquisitions • Expand and improve recruitment, training, safety and benefits programs • Increase geographic diversification • Profitability before growth First Quarter Results: essentialenergy.ca ------------- 3/31/06 -----Change Revenue 19,521 364% EBITDA 7,368 387% EBITDA margin (%) 37.7% Net income 3,063 254% Net income margin (%) 15.7% Funds From Operations (FFO) 7,056 375% Total Assets 116,721 ESSENTIAL ENERGY SERVICES TRUST 950, 330 - 5th Avenue SW Calgary, Alberta T2P 0L4 Phone: (403) 263-6778 Fax: (403) 263-6737