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.

Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: jbe who wrote (17107)	3/29/1998 8:21:00 PM
From: Czechsinthemail	Read Replies (1) \| Respond to of 95453

jbe, With few exceptions, most of the new rig building is deepwater rigs with long-term contracts that virtually guarantee a payback on the building costs. While there will be a significant increase in the number of deep drilling rigs, the absolute numbers of these rigs compared with the number of potential deep drilling prospects remains small. I'm in agreement with you on the attractiveness of ESV, but not because of fears of overbuilding. I simply think it is cheap, undervalued and underappreciated. Baird

To: jbe who wrote (17107)	3/29/1998 8:32:00 PM
From: Tulvio Durand	Respond to of 95453

In good times negative free cash flow is probably not that important. It's sort of like using margin in one's trading account; it's great as long as the market is going with you. But, if the oil glut persists then we can expect some belt tightening among the drillers/service co's. They might be forced to jettison debt and cancel long term contracts in order to manage their cash flow. Choosing drillers/service co's with best free cash flow and balance sheets seems prudent. Tulvio