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

To: Crimson Ghost who wrote (34551)	1/8/1999 3:01:00 PM
From: Richard D	Respond to of 95453

OPEC compliance is up to 82%: bloomberg.com

To: Crimson Ghost who wrote (34551)	1/9/1999 12:39:00 AM
From: Douglas V. Fant	Respond to of 95453

George, Yup, the first OS stock I checked used 1998 substantially to clean up its balance sheets (WFT), to wit from its Nov 16th SEC 10Q Filing: In connection with the above activities and the consummation of the Weatherford Merger, the Company recorded merger and other charges (the "Merger and Other Charges") during the second quarter of 1998 aggregating approximately $120.0 million before taxes for merger expenses and other matters associated with the consolidation and reorganization of the Company's operations and businesses in light of the Weatherford Merger and recent market conditions. The Merger and Other Charges consist of $29.9 million in transaction costs, $32.6 million in severance and termination costs related to former officers, directors and employees and other employee benefits related to stock grants pursuant to WII employment agreements and option plans, $5.2 million in corporate related expenses directly associated with the Weatherford Merger and $6.3 million related to facility closure costs, associated with the closure of excess and duplicated manufacturing, distribution and service locations primarily due to integrating the Company's businesses with WII's businesses under a Company-wide consolidation plan. To date, the Company has incurred $4.5 million related to such facility closures as of September 30, 1998. Additionally, the Company recorded $46.0 million associated with the impairment of various assets as a result of the combination of worldwide operations and the rationalization of product lines and the elimination of certain products, services and locations, as a result of the changes in the operations of the Company following the Weatherford Merger in accordance with the Company-wide consolidation plan. Note the $46mm charge for "impaired assets"- impaired my heinie! They're just reducing on the balance sheets costs in low profit assets so that profit margins on these assets turn up even if business goes sideways in the future... Now you see why the CEO confidently predicted recently that profits would turn up in the 2d half of 1999. At least one factor assuring that upturn is his own acumen in managing assets and keeping ROFA's in sight..... Sincerely, Doug F. PS. I work for a major......