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

To: The Ox who wrote (44088)	5/6/1999 3:35:00 AM
From: upanddown	Respond to of 95453

Hi Michael: I was looking at the proved reserves for PZE and you are right....APA has about 70% more and APC about 160% more so they definitely deserve a big premium. They have also done a much better job of replacing reserves. My only question is whether 5x for APA and 8x for APC is too much of a premium, especially APC since it only has 80% of PZE revenues. I think what happened with PZE is that it split off Quaker State/Pennzoil right in the middle of a E&P depression and Wall St didn't know how to value PZE. They've got a new management team and hopefully are getting their act together. One thing I do like is Pennzoil, before the breakup, got an offer for the oil/gas properties from UPR in excess of $30/share when prices were no higher than they are now. Still trying to understand the relative importance of production as a gauge of value. It just seems that in a sector with similar products, prices and margins, the most leverage to the bottom line from higher margins would accrue to the companies with high production revenue relative to market cap. Nice find on CPE. Looks good but what the heck is that short ratio of 23.5 days and about 40% of the float short ! biz.yahoo.com Good luck, John