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

To: Jamey who wrote (31437)	11/4/1998 1:12:00 AM
From: advinfo	Respond to of 95453

Tuesday November 3, 6:05 PM (EST) S&P PLACES RTGS. OF POOL ENERGY SERVICES ON CREDITWATCH New York-Nov. 3-FWN--STANDARD & POOR'S (S&P) TODAY placed its double-'B' corporate credit rating and bank loan rating on Pool Energy Services Co. and its single-'B'- plus rating on the company's subordinated debt on CreditWatch with "developing" implications, meaning ratings may be raised, lowered, or affirmed. S&P also affirmed its triple-'B'-plus corporate credit rating and triple-'B' subordinated rating on Nabors Industries Inc. The ratings outlook is positive. The CreditWatch placement follows the announcement by Nabors that it made an offer to acquire all of the outstanding shares of Pool, which had been rejected by Pool's board of directors. Nabors' offer and its subsequent rejection open up the possibilities that Pool could still reach an agreement--either with Nabors or an independent third party--for the sale of the company, or exercise anti- takeover measures. The ratings on Pool could either be raised or lowered depending on the actions Pool elects to follow in response to Nabors' takeover proposal. S&P will closely monitor developments to determine the impact, if any, a potential transaction would have on the existing ratings. Nabors' ratings reflect a strong competitive position in the difficult land-based contract drilling industry and expectations that the company will maintain a conservative financial policy. Nabors' profitability has been above average compared to industry peers due to its diversified revenue base and low costs, which also reduce volatility and affords some protection from market downturns. Strong pretax interest coverage, well in excess of 10 times, is envisioned for 1998 and could increase with slowly improving market conditions over the long term. Still, Nabors' performance will remain subject to energy price volatility. Some markets, such as heavy oil drilling, are currently experiencing weakness. Ongoing investment requirements for maintenance capital expenditures are modest compared with funds from operations. However, S&P expects Nabors to use all internally generated funds to expand the business, as has historically been the case. Nabors is financially very strong. Its balance sheet remains moderately leveraged, with total debt leverage expected to remain in the mid- to high 20% area for the long term. Nabors enjoys significant financial flexibility for a contract driller, regularly issuing stock, including for acquisitions. Financial flexibility is also supported by light debt maturities and adequate bank credit facilities. OUTLOOK (NABORS): POSITIVE A modestly higher rating could be achieved if Nabors capitalizes on current market conditions to further enhance its business position in the land-contract-drilling sector. The timing of potential rating increases depends on S&P's continuing assessment of Nabors' dynamic growth and long- term sustainability of operating results.

To: Jamey who wrote (31437)	11/4/1998 1:13:00 AM
From: dfloydr	Respond to of 95453

OFF TOPIC: It looks as though you are right about the outcome of today's voting and the prospects for impeachment. Remember that the "freefall" you speak of had little to do with the Nixon departure in itself and LOTS to do with the state of the economy. Nixon introduced wage price controls and all that baloney which got the economy good and screwed up. Nixon just happened to leave as all that "stuff" hit the economic fan. If he had stayed on deck, the same economic events would have occurred at that time. If you recall there was one hell of a mess brought on by those idiotic policies. In business we were going through hoops everywhere we turned. Incentives were dead. Regulations had us smothered. Filings, penalties, threatened jail terms! Inflation was upon us. The economic engine was burning up energy dealing with bureaucrats and their garbage. It was grim. It had to blow. Having worked through those times I would say the change of politicians was incidental to the economic events. Very few of us even thought to blame Nixon's departure for what happened economically. Wasn't it Ford who then came up with that inane ploy of passing around "WIN" buttons for "whip inflation now"? With that level of economic sophistication it is amazing matters were not worse. Unless Clinton's departure included Greenspan and Rubin and several others at the economic controls, I do not think the market would do more than burp for a day or two. Of course, Clinton supporters have been touting the post Nixon economic decline to thwart Congressional action and to stir up voter fears. I do not buy that spin. As for todays results, the Democrats have done surprisingly well today. I suspect we voters are all a bit sick of the whole political scene including both Clinton and the vengeful, unctious rectitude of the Republican Right wing. It looks to me as though the Republican religious right wing has done tremendous damage to the party. Historically Republicans should have gained seats at this time, not lost them. That element in the Republican party is so antithetical to the freedoms espoused by Democrats and Republicans alike that I and a lot of other Republicans would rather tolerate a lousy Democrat than suffer a demagogic religious Republican preaching at me and snooping around my gay neighbor's bedroom.