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

To: marc chatman who wrote (28358)	8/26/1998 8:39:00 AM
From: SliderOnTheBlack	Read Replies (3) \| Respond to of 95453

Values & the bottom... Amazing; Oil Industry exec's starting to buy, increasing credit lines for expansion of capacity and news like this link below; but yet - no strong buying support. simply amazing that we are not seeing more sector rotation - I don't know how people can continue to hold the major DOW stocks and the leaders at PE's of 30-50+ ??? Wednesday August 26, 7:58 am Eastern Time Company Press Release SOURCE: Cross Timbers Oil Company Cross Timbers Oil Plans to Distribute Royalty Trusts; Adopts Stockholder Rights Plan FORT WORTH, Texas, Aug. 26 /PRNewswire/ -- Cross Timbers Oil Company (NYSE: XTO - news) today announced that it plans to begin the systematic distribution of royalty trusts to its stockholders beginning no later than early in the year 2000. The Company also adopted a stockholder rights plan. ''We plan to attain our goals for 1999 of $4.00 cash flow per share and 36 Mcfe per share,'' stated Bob R. Simpson, Cross Timbers' Chairman and CEO. ''After achieving those goals, our size will make growing at our historic rate increasingly more difficult. In order to continue our outstanding growth after 1999 and to unlock the intrinsic value of our premium oil and gas assets, we plan to systematically distribute selected assets affecting 30 to 40% of the Company's total assets in the form of royalty trusts beginning no later than early in the year 2000. Capital structure decisions and operating strategies over the coming months will be consistent with this plan. ''We believe that long-lived oil and gas reserves with significant upside potential and name recognition achieve optimum capitalization rates when held in the form of publicly traded royalty trusts,'' Simpson added. ''Management has previously formed three royalty trusts: the San Juan Basin Royalty Trust [NYSE:SJT - news], the Permian Basin Royalty Trust [NYSE:PBT - news] and Cross Timbers Royalty Trust [NYSE:CRT - news]. All of these trusts are listed on the NYSE and continue to trade at premiums to exploration and production companies. ''Our Board believes that the Company's premium quality oil and gas assets are significantly undervalued and that this plan will achieve values in excess of double our current stock price,'' Simpson concluded. ******************************************************************************* ...''values in excess of double our current stock price,''....kind of speaks to the ''bottom'' and potential upside here doesn't it ? This Cross Timbers ''Royalty Trust'' is also paying a 9.97% dividend for the conservative minded - not a bad play here ! *now Maria/CNBC is touting buying Office Depot - what a buy; PE is still below 30 ! --- earning a whopping .32 cents or something this quarter ...I just don't get it...Analysts pounding the table on these high flyers; but ''downgrading 1999 Oil to $16 which is great news if & when we get to $16 ! - the oilpatch will fly - shouldn't the analys be pounding the table for the 'patch saying Oil is going to $16 & buy now !?