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To: Zeev Hed who wrote (274)4/2/1999 11:54:00 AM
From: Razorbak  Respond to of 477
 
AIPN - Comments

Zeev: Do the calculation for FY96.

Razor



To: Zeev Hed who wrote (274)4/3/1999 12:34:00 PM
From: semi_infinite   Read Replies (2) | Respond to of 477
 
I have only briefly reviewed the equation and I wonder whether how it would apply to a commodity company like AIPN. Both TA and EBIT fluctuate with crude prices and subject to a high level of uncertainty by themselves -- BOEG reserves form basis for TA I presume. Perhaps posing the equation as a sensitivity equation would be better. That way, you can see what happens as crude prices change and understand the impact of uncertainty in reserves. BTW - I think the gas is stranded because pipeline capacity is limited and oil transport will take precedence.