| To: David Alan Cook who wrote (1001) | 7/27/2000 11:36:10 PM | | From: Heretic | | | | Navellier was on Squawk Box today.
From CNBC.com:
...Navellier believes the best valuations lie in the small micro-cap area, mostly in oil services and oil drillers. "If you want the best valuations, that's where you have to go. The oil patch is the healthiest area right now because they are in the early stages of a long-term rally," he said.
Navellier added that the only thing that could disrupt oil prices would be an economic slowdown worldwide, similar to the slowdown during the Asian crisis. "That's not in the cards right now. The supply and demand for oil is unbelievably tight."...
Navellier's picks include CWEI and PGO. |
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| To: Heretic who wrote (1002) | 8/1/2000 9:25:27 PM | | From: David Alan Cook | | | | GREAT EARNINGS FROM CWEI - News On Wells
Tuesday August 1, 5:47 pm Eastern Time
Press Release
SOURCE: Clayton Williams Energy, Inc.
Clayton Williams Energy Announces Record Profits For Second Quarter and Update On Pinnacle Reef Wells
MIDLAND, Texas, Aug. 1 /PRNewswire/ -- Clayton Williams Energy, Inc. (Nasdaq: CWEI - news) reported today record net income for the second quarter of 2000 of $10.9 million, or $1.15 per diluted share, on revenues of $26.7 million, compared to net income of $7.9 million, or $.87 per share, on revenues of $10.8 million for the second quarter of 1999. The 1999 quarter held the Company's previous record for reported earnings, but included an $8.3 million gain on the sale of its interests in the Jalmat Field in Lea County, New Mexico.
For the six months ended June 30, 2000, the Company reported net income of $17.3 million, or $1.84 per diluted share, on revenues of $46.9 million, compared to net income of $7.8 million, or $.86 per diluted share, on revenues of $19.1 million for the six-month period in 1999.
The Company cited high oil and gas prices as the primary factor in this record-setting achievement, but also noted that increases in its net oil and gas production contributed significantly to the overall increase in oil and gas revenues. Gas production was up 126% as compared to the 1999 quarter due primarily to an increase in the Company's production capacity resulting from the completion of a new gas treatment facility in the Cotton Valley Pinnacle Reef area in Robertson County, Texas. Oil production also increased 32% due primarily to the Company's horizontal drilling and water frac programs in the Trend.
To date, the Company has successfully drilled four Pinnacle Reef wells. Three of these wells, the J. C. Fazzino Unit #1, the J.C. Fazzino Unit #2 and the Varisco Estate #1, are currently producing at a combined rate of 41 MMcf per day (20.5 MMcf to the Company's interest, net of royalties and amounts payable under a vendor financing arrangement), while the fourth well, the McGrew #1, is expected to be completed by early September.
The Company is currently drilling the Muse #1, the Company's fifth Pinnacle Reef well, at a depth of about 10,000 feet. The Company owns a 100% working interest in the Muse #1, but is drilling the well pursuant to vendor financing arrangements.
The Company owns a 14% working interest in a test well to be operated by Anadarko Petroleum Corporation (formerly UPRC), the Grey Reef #1, which is expected to spud in late August. It is four miles southwest of the Fazzino #2 and is on the same deep Jurassic feature.
Clayton W. Williams, Jr., President and CEO said, ``We are very excited about the potential of this well. The Grey Reef #1 will be drilled on the same geological feature that immediately underlies the Fazzino #1 and #2 and the other two reef wells. These wells all encountered very significant porosity zones below their gas/water contact. Seismic indicates the Grey Reef #1 will be 800 to 900 feet high to all of these wells and because it is on the same feature there is a good chance of finding these porosity zones gas filled. Since this well offsets our 100% acreage, if successful, it will be very significant to the Company.''
Clayton Williams Energy, Inc. is an independent energy company located in Midland, Texas.
Certain statements contained herein constitute ``forward-looking statements'' within the meaning of the Private Securities Litigation Reform Act of 1995 (the ``Reform Act''). Such forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of the Company to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following: the volatility of oil and gas prices, the Company's drilling results, the Company's ability to replace short-lived reserves, the availability of capital resources, the reliance upon estimates of proved reserves, operating hazards and uninsured risks, competition, government regulation, the ability of the Company to implement its business strategy, and other factors referenced in the Company's public filings with the Securities and Exchange Commission.
The financial information contained herein and in the accompanying tables should be read in conjunction with the notes to consolidated financial statements included in the Company's Form 10-Q for the quarter ended June 30, 2000.
A conference call is scheduled for 10:30 a.m. CDT August 2, 2000, and will be available live on the Internet. The new link to the conference call is posted on our web page at claytonwilliams.com or at vcall.com. The call will remain posted for replay for up to 90 days afterward.
CLAYTON WILLIAMS ENERGY, INC.
SELECTED FINANCIAL AND OPERATING DATA
(Dollars in thousands, except per unit data)
Three Months Ended Six Months Ended
June 30, June 30,
2000 1999 2000 1999
STATEMENT OF OPERATIONS: (Unaudited) (Unaudited)
REVENUES
Oil and gas sales $25,447 $9,909 $44,549 $17,430
Natural gas services 1,240 871 2,359 1,676
Total revenues 26,687 10,780 46,908 19,106
COSTS AND EXPENSES
Lease operations 4,469 2,684 8,169 5,388
Exploration:
Abandonments and impairments 1,484 639 3,267 894
Seismic and other 1,067 20 2,043 377
Natural gas services 1,158 795 2,027 1,456
Depreciation, depletion and
amortization 6,892 5,548 11,949 10,840
General and administrative 1,102 1,133 1,953 1,871
Total costs and expenses 16,172 10,819 29,408 20,826
Operating income (loss) 10,515 (39) 17,500 (1,720)
OTHER INCOME (EXPENSE)
Interest expense (644) (675) (1,255) (1,477)
Gain on sales of property
and equipment 1,014 8,382 1,018 10,593
Other 19 280 65 367
Total other income (expense) 389 7,987 (172) 9,483
INCOME BEFORE INCOME TAXES 10,904 7,948 17,328 7,763
INCOME TAX EXPENSE --- --- --- ---
NET INCOME $10,904 $7,948 $17,328 $7,763
Net income per common share:
Basic $1.19 $.89 $1.89 $.87
Diluted $1.15 .87 $1.84 $.86
Weighted average common
shares outstanding:
Basic 9,190 8,973 9,181 8,964
Diluted 9,492 9,107 9,431 9,063
OTHER OPERATING DATA:
Cash flow provided by
operating activities $16,673 $2,233 $30,780 $7,461
EBITDAX $19,958 $6,168 $34,759 $10,391
Net production:
Oil (MBbls) 627 476 1,176 949
Gas (MMcf) 2,259 1,000 3,522 2,110
MBOE 1,004 643 1,763 1,301
Average sales price
(including hedging
gains/losses):
Oil ($/Bbl) $28.08 $15.77 $28.09 $13.51
Gas ($/Mcf) $3.30 $2.55 $3.08 $2.03
June 30, December 31,
2000 1999
CONDENSED BALANCE SHEET: (Unaudited)
Current assets $25,143 $15,900
Property and equipment, net 106,832 93,006
Other assets 255 260
Total assets $132,230 $109,166
Current liabilities $27,584 $22,549
Long-term debt 31,000 30,500
Stockholders' equity 73,646 56,117
Total liabilities and stockholders' equity $132,230 $109,166
SOURCE: Clayton Williams Energy, Inc.
DC |
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| To: David Alan Cook who wrote (1003) | 8/5/2000 4:35:33 PM | | From: David Alan Cook | | | | CWEI to buy back shares in the open market
News release below:
Clayton Williams Energy Announces Stock Repurchase Program
MIDLAND, Texas, Aug 3, 2000 /PRNewswire via COMTEX/ -- Clayton Williams Energy, Inc. (Nasdaq: CWEI chart, msgs) has announced today that its Board of Directors has approved the expenditure of up to $2,000,000 for the repurchase of shares of the Company's stock in open market transactions through July 18, 2002 at times and prices deemed appropriate by the Company.
Clayton Williams Energy, Inc. is an independent energy company located in Midland, Texas.
Certain statements contained herein constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Reform Act"). Such forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of the Company to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following: the volatility of oil and gas prices, the Company's drilling results, the Company's ability to replace short-lived reserves, the availability of capital resources, the reliance upon estimates of proved reserves, operating hazards and uninsured risks, competition, government regulation, the ability of the Company to implement its business strategy, and other factors referenced in the Company's public filings with the Securities and Exchange Commission. Source: Clayton Williams Energy, Inc.
DC |
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| To: Heretic who wrote (1002) | 8/30/2000 1:03:12 PM | | From: David Alan Cook | | | | CWEI Report Available
My Three Reasons for Buying:
1) Turnaround in oil and gas prices will improve revenue and earnings
2) Company sells at a steep discount to the Industry Average Price Rations ( Sells at a Discount to Price to Cash Flow and Price to Earnings ( 00 - trailing ) and ( 01 -forward )
3) Insiders and the company continue to buy shares.
Recommended on 1 Aug 99 at $8.75 Ask. Believe the stock is undervalued and will trade much higher in the coming qtrs
Anyone with any info on CWEI, send me an email at Cookd1@prodigy.net and I will send you the info / research I have.
Best of Luck investing in CWEI
DC
Cookd1@prodigy.net |
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| To: David Alan Cook who wrote (1007) | 9/30/2000 9:00:45 AM | | From: David Alan Cook | | | | CWEI - STOCK UP 3 Points + See last news comments on increase in oil production from recent drilling
DC
Clayton Williams Energy Announces Results of Its New Mexico Development Project
MIDLAND, Texas, Sep 20, 2000 /PRNewswire via COMTEX/ -- Clayton Williams Energy, Inc. (Nasdaq: CWEI chart, msgs) has successfully completed its 12th development well in the Loco Hills area of Eddy County, New Mexico. Total lease production is expected to be 800 BO and 1500 MCF per day after having produced 78,500 BO and 152 MMCF since February. CWEI developed this acreage on 20-acre spacing.
The Company has begun an additional development program in the area with 2 wells recently completed producing 285 BOPD, a 3rd well being completed and a 4th well drilling. The Company owns a 43% net revenue interest in this program and if successful could drill up to 58 wells in this area.
Clayton W. Williams, President and CEO said, "These are long life reserves. We believe the wells drilled to date have increased our current oil production by about 10 percent. We are excited about these results and believe we have further exploitation potential."
Clayton Williams Energy, Inc. is an independent energy company located in Midland, Texas.
Certain statements contained herein constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Reform Act"). Such forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of the Company to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following: the volatility of oil and gas prices, the Company's drilling results, the Company's ability to replace short-lived reserves, the availability of capital resources, the reliance upon estimates of proved reserves, operating hazards and uninsured risks, competition, government regulation, the ability of the Company to implement its business strategy, and other factors referenced in the Company's public filings with the Securities and Exchange Commission.
Source: Clayton Williams Energy, Inc.
Contact:
Lajuanda Holder, Director of Investor Relations, 915-688-3419,
or Mel G. Riggs, Chief Financial Officer, 915-688-3431, both of Clayton
Williams Energy, Inc., email, cwei@claytonwilliams.com
/Company News On-Call: prnewswire.com or fax,
800-758-5804, ext. 147163
URL: claytonwilliams.com
News provided by
COMTEX User Agreement
All Headlines
Additional Headlines
09/20 07:45 PR Newswire
Clayton Williams Energy Announces Results of Its New Mexico Development Project
09/18 13:27 CBS MarketWatch.com
XY DME HSY DME TMAR TDW QCOM AEOS NVLS ICGX [external]
09/11 16:44 PR Newswire
Clayton Williams Energy - Fourth Pinnacle Reef Well Tests Gas
08/24 15:31 Business Wire
Navellier Fund Manager Interviews On RadioWallStreet.com |
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| To: David Alan Cook who wrote (1008) | 11/4/2000 9:32:10 PM | | From: Heretic | | | | The following post is from Valueconscious on Yahoo msg-brd:
1) The company was virtually unhedged at June 30, 2000
2) Gas Prices increased markedly, During July the Henry Hub averaged at least $3.75, August at least $4.10, and September at least $4.70 for a weighted average of $4.18 (my own rough calculation) lets say the company nets $4.00 this is $.70 better than what they realized in Q2 or an increase in gross revenues of $1.6 million
3) Oil prices improved as well albeit not as well as gas. Lets say they added $.50 per barrel taking the average price to $28.50. Add $ 314 thousand in gross revenue
4) The company has been actively drilling this year, production increased approximately 50% from Q1 to Q2. Should we see an increase in Q3? I would think so, unless depletion is very strong, they do have some chalk properties, but it would be my guess that production should be at least flat to up.
5) Last quarter was a barn burner. $1 million gain in asset sales was largely offset by an $800 thousand write off for unwinding some hedges. In addition there was somewhere around $1.5 to $2.0 million in acreage write-offs and dry hole costs.
6) Pinnacle reef processing plant was processing 21 mmcf day (net), which if my math is correct would translate to 1,890 mmcf per quarter (compared to Q2 total gas production of 2,259). I would think that Q3 should come in pretty strong
7) OK, energy prices have retreated recently and maybe we won't hit $6 gas (maybe we will, winter has not begun yet). $4.00 is still a ways a way, and even at $3.50 cash flow would be strong.
8) Fundamentals for Gas are still bright, new construction is principally gas, new power plants are gas, and by the way we have a critical shortage of electrical generation
9) Debt is minuscule in relation to cash flow
10) I believe we are oversold here.
messages.yahoo.com |
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| To: David Alan Cook who wrote (1008) | 12/27/2000 1:15:31 AM | | From: Heretic | | | | Clayton Williams Energy
oil-gasoline.com
Background:
Clayton Williams Energy Inc. is an independent oil and gas company engaged in the exploration, development, and production of oil and natural gas primarily in Texas, Louisiana, and New Mexico. The company's common stock trades on the NASDAQ National Market under the ticker symbol "CWEI".
Strengths:
Clayton Williams' balance sheet is one of the strongest in the industry. For the trailing twelve months (TTM), the company's EBITDAX-to-interest ratio and EBITDAX-to-fixed charges ratio are 23.9x and 20.1x, respectively. These figures are more than double the average for the company's peer group. In addition, Clayton Williams has generated approximately $64.8 million in EBITDAX (TTM), which exceeds the company's total debt (as of September 30, 2000) by 240 percent. The company's peer group, on average, has only generated EBITDAX sufficient to cover 79 percent of total debt.
The company's capital structure is very sound as well. As of September 30, 2000, Clayton Williams' total debt as a percentage of tangible net worth, tangible assets, and total capital was 32.3 percent, 17.6 percent, and 24.4 percent, respectively, compared to a peer group average of 81.1 percent, 35.3 percent, and 44.8 percent, respectively.
Part of the reason for Clayton Williams' low debt level is the vendor financing arrangements that the company has taken advantage of. The vendor arrangements are a form of off-balance sheet financing which allow the company to pay for drilling services through future production. Clayton Williams set up the vendor program in early 1999 when product prices were low and little relief was in sight. Since the company hedged 87 percent of its 1998 oil production at $19.61/barrel, Clayton Williams was in good shape given the relative condition of the industry at the time. As a result, Clayton Williams was one of the few companies that had the money or economic prospects to drill at 1999 oil prices. These financing arrangements allowed the company to keep debt down and spread cash flow to as many projects as possible.
Currently, Clayton Williams receives approximately 40 percent of the cash flow (net of royalty interest) from its Cotton Valley reef wells, while vendors receive 60 percent. The company, however, anticipates that the entire vendor program, which consists of $8 million of off-balance sheet financing, will be paid out by the second half of 2001. Once this occurs, Clayton Williams will own 100 percent of the cash flow and reserves (net of royalty interest) associated with these wells. If the company gets a boost from natural gas prices, as well as solid production from its McGrew #1 and Muse #1 wells, the pay out could be completed much sooner.
Over the past twelve months, the company has also been able to fund its capital expenditures (capex) through operating cash flow. By budgeting within its cash flow, the company has been able to generate $8.6 million in free cash flow. This excess cash has been used to pay down debt and may be used towards future stock repurchases as well. For the trailing twelve months, Clayton Williams' operating cash flow as a percentage of total debt and capex are 222.4 percent and 116.7 percent, respectively, versus a peer group average of 62.9 percent and 81.1 percent, respectively. In other words, most companies in Clayton Williams' peer group, on average, have not been able to generate sufficient cash flow to fully fund their capex budget. Clayton Williams also plans to fund its 2001 capex budget through cash flow. Furthermore, the company has $23 million available under its credit facility if necessary.
The company's ability to add quality reserves and keep costs at a minimum is advantageous as well. Clayton Williams' Performance Value Index (PVI) was 1.4x for 1999. This means that the PV-10 of the company's discovered reserves in 1999 was 40 percent greater than the costs of finding and developing those reserves. In other words, Clayton Williams was able to create $1.40 in value for every $1.00 in capital expenditures. In addition, the company has a ceiling test ratio of 2.0x, which means that the PV-10 of the company's reserves at 1999 year-end (pre-tax) was nearly twice the amount of the company's net capitalized costs. This gives the company significant cushion if commodity prices take a downturn in the near future (as impairment charges or write-down of assets will be unlikely). This also means that the company has been adding reserves over the years at relatively inexpensive prices. Furthermore, nearly 80 percent of Clayton Williams' reserves are proven developed and the company has a 79 percent net working interest in its properties. This translates to greater cost control.
Weaknesses:
The company recently reported that net reserves from its J.C. Fazzino wells (#1 and #2) had been revised downward. The two wells, which produce from the Cotton Valley reef, are now estimated to hold 8.5 Bcf of natural gas (net of royalties and vendor financing arrangements) as opposed to 11.2 Bcf as of December 31, 1999. The downward revision is due to the fact that the decline in flowing tubing pressure has yet to level off for these wells. Since the two wells have seen only slight leveling at best, the company can not guarantee that current reserve numbers will not be written down again.
This leads to another problem for Clayton Williams. Given the steep decline rates associated with the Cotton Valley reef wells, the company will have to focus its attention on finding longer life reserves to help replace production. This will likely come from the company's New Mexico or Louisiana properties. In addition, the company replaced 276 percent of its annual production in 1999. Excluding revisions though, Clayton Williams only replaced 82 percent of its annual production in 1999. Furthermore, because such a large portion of the company's added reserves were due to revisions (as opposed to actual drilling discoveries or extensions), Clayton Williams had replacement costs of $6.85 (per BOE) in 1999, which was slightly higher than the peer group average of $6.70.
Valuation:
Part of the reason for the recent drop in Clayton Williams' stock price is likely due to the unexpected expenses that the company incurred in the third quarter of 2000. The company not only had a $1.6 million income tax provision, the first ever recorded in its public history, but a $2.2 million non-cash charge for stock-based compensation as well. Both of these items caught analysts and investors off guard. Along with the downward revision in reserves, the stock took a turn for the worse. Clayton Williams' stock closed at $21.50 on December 15, 2000, more than 50 percent off its 52-week high.
Though this was likely an overreaction by investors, other concerns still remain. For example, Clayton Williams has spent $8 million on its south Louisiana properties this year, with another $9 million expected to be spent in the fourth quarter of 2000. Despite the large investment in this area, the company has yet to offer any insight on these developments to the public. With a significant portion of the company's capex going into these properties but little information to go on, investors are being left in the dark. As a result, additional risk is being placed on the company.
Currently, Clayton Williams is trading at an Enterprise Value/EBITDAX ratio and an Enterprise Value/Operating Cash Flow ratio of 3.5x and 3.7x, respectively, versus a peer group average of 4.5x and 5.7x, respectively. Given the uncertainties surrounding the company though, these lower multiples may be warranted. Though the stock is attractive at current levels, investors should allow some time for further developments to unfold. Once there is more certainty and visibility regarding the company's future, additional evaluation and analysis will be provided.
Disclaimer:
This report and the information contained herein is strictly the opinion of the publisher and is intended for informational purposes only. Readers are encouraged to do their own research and due diligence before making any investment decision. The publisher will not be held liable for any actions taken by the reader. Although the information in this report has been obtained from resources that the publisher believes to be reliable, the publisher does not guarantee its accuracy. Please note that the publisher may take positions in companies profiled.
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| To: Heretic who wrote (1010) | 5/20/2002 9:46:24 PM | | From: David Alan Cook | | | | CWEI Report Available. Send email to dcpress@bellsouth.net
My Three Reasons For Buying
1) Turnaround in Oil and Gas Prices will improve revenue and earnings
2) Company sells at a steep discount to the Industry Average Price Ratios
3) Large Insider Ownership
DC
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