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Gold/Mining/Energy : Oil & Gas Exploration & Production Co.'s

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To: DELT1970 who wrote (58)5/7/2003 7:30:21 AM
From: Ed Ajootian   of 112
 
Delt, Thanks for your thoughts. I blew out a big chunk of my EPL when I saw that they incurred a ~ $25 M liability last quarter in connection with their earn-out obligation for the purchase of Hall=Houston and declined to disclose it in their PR. They paid cash for that when they coulda paid half stock, when the stock was trading at $10, and then they extinguish the borrowing for that by later issuing stock where they get a net of $9.

This is not a megabucks issue but my concern is that if management is stupid enough to try to get away with pushing this stuff under the rug what else are they doing that we can't detect?

I hope EPL management is not wondering why they trade at such a low multiple of cash flow because to me the answer is now obvious.
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