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Gold/Mining/Energy : Global Santa Fe (GSF) (formerly Global Marine) -- Ignore unavailable to you. Want to Upgrade?

To: General Crude who wrote (757)	6/20/1998 5:54:00 PM
From: General Crude	Read Replies (1) \| Respond to of 2282

Copy of Lehmann Report: Headline: Global Marine: Revising EPS Down for Weaker Jackup Market Author: Paul D. Chambers 1(713)228-8242 Rating: 1 Company: GLM Country: EPS CUS Industry: ENERGY Ticker : GLM Rank(Prev): 1-Buy Rank(Curr): 1-Buy Price : $22 52wk Range: $37-18 Price Target: $32 Today's Date : 6/8/98 Fiscal Year : DEC ------------------------------------------------------------------------------ EPS 1997 1998 1999 2000 QTR. Actual Prev. Curr. Prev. Curr. Prev. Curr. 1st: 0.29A 0.39A 0.39A - -E - -E - -E - -E 2nd: 0.35A 0.51E 0.42E - -E - -E - -E - -E 3rd: 0.46A 0.54E 0.46E - -E - -E - -E - -E 4th: 0.49A 0.58E 0.51E - -E - -E - -E - -E ------------------------------------------------------------------------------ Year:$ 1.56A $ 2.05E $ 1.78E $ 2.55E $ 2.22E $ - -E $ - -E Street Est.: $ 1.96E $ 1.95E $ 2.41E $ 2.38E $ - -E $ - -E ------------------------------------------------------------------------------ Price (As of 6/5): $22 Revenue (1998E): $1.3 Bil. Return On Equity (98E): 32.5% Proj. 5yr EPS Grth: N/A Shares Outstanding: 176.0 Mil. Dividend Yield: N/A Mkt. Capitalization: $3.9 Bil. P/E 1998; 1999: 12.3 X; 9.9 X Current Book Value: $5.00/sh. Convertible: None Debt-to-Capital: 43.0% Disclosure(s): None ------------------------------------------------------------------------------ * We are lowering our EPS estimates for Global Marine to reflect pricing pressure for its jackup fleet given the current commodity price environment. * Rates for premium jackup rigs have continued to fall with Global Marine realizing as much as 20% declines from recent highs. Though rate declines for premium jackups have been widely talked about, the magnitude of decline is more recent news. * We continue to rate Global Marine a 1-Buy based on 1999 EPS which will benefit from full year contributions from added deepwater assets during 1998 and an additional contracted deepwater unit during 1999. * Although 40% of its 1998 cash flow and slightly more than 50% of 1999 cash flow will come from deepwater assets, the company trades more in line jackup companies. All of its recent capacity additions have been deepwater assets. * Global Marine is attractively priced based on our revised EPS estimates. However, because Street estimates are too high, a near-term resistance level for the stock may emerge keeping the stock near its current price for the coming months. ------------------------------------------------------------------------------ BUSINESS DESCRIPTION: Global Marine is a leading global offshore contract driller with a growing deepwater presence. ------------------------------------------------------------------------------ Disclosure Legend: A-Lehman Brothers Inc. managed or co-managed within the past three years a public offering of securities for this company. B-An employee of Lehman Brothers Inc. is a director of this company. C-Lehman Brothers Inc. makes a market in the securities of this company. G-The Lehman Brothers analyst who covers this company also has position in its securities.