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To: JSB who wrote (64066)	9/11/2008 4:10:04 PM
From: Keith Feral	Read Replies (1) \| Respond to of 118717

I think the oil companies are already diverging. Cramer called it last night. Fundamentally, all of the oil companies are more profitable with crude at $100. The margins and volumes for their business will react positively to lower prices. The tough part was the deleveraging process as the hedge funds bailed on commodity stocks to deleverage their energy swaps and other derivative positions. I think the margin process has run it's way through the system. Nice way to close the market today!

To: JSB who wrote (64066)	9/11/2008 4:18:14 PM
From: Dale Baker	Read Replies (1) \| Respond to of 118717

Well, PRC sold about 49K barrels of oil equivalent in Q2 and averaged $89.50 for them, making an operating profit of over $1m. To break even, they only needed $61 per boe. And they just did a hedge for some of their forward production at $105 boe. I just don't see the downside. And that's not counting what they will drill for and find and add to production.