kog, eog, geoi, gpor all missed

[setliff]

dan, could you add your comments to these reports. you once said eps was not a key factor, but free cash flow was the thing to watch.

for the life of me i can not get this attribute from these reports--a class please?

jim

[dan_s]

Jim;

Yes, EPS is a very poor way to compare E&P companies. Cash Flow Per Share is much better but still not perfect.

In each companies' press release they should show a Cash Flow Statement. Look at Cash Flow from Operations. Also, my Net Income and Cash Flow Forecasts show CFPS just below EPS. Companies that are living within cash flow from operations and building production and reserves are the best. TGA is the best example and why it is up over 130% year-to-date.

The real value of any E&P company is their reserves in the ground. For example, take a look at what Hess just paid for AEZ - a company with no earnings. BEXP and EOG trade at very high PE ratios but they also hold incredible potential just in their Bakken acreage.

I will be updating my forecast models for all of these companies this weekend. Check out my "Sweet 16 Detailed Update" on Tuesday. A link to it will be in the Newsletter.

Dan