in which the ceo points out the stock is selling at 2.5 times cash flow, compared to an average cash flow multiple of 3.5 to 4.5 for the peers.
He also provided an update on Rancho Colusa. The first two wells were dy holes, with a third well which should be drilling now. In addition, the company will be drilling three nonoperated wells by year end.
For 2001, the company anticipates drilling two prospects in Utah in the first half of the year.
The letter you speak of is dated 10/18. I got the same letter today thru my broker, but I first received it back in October directly from Equity Oil. Years ago I wrote to them and asked to be put on their direct mailing list. It is the only way to get quarterly reports on a timely basis. I'm still hoping for a takeover bid from a middle sized O & G company. I think that's the only way we will ever get back to 5 bucks. Keep the faith.
The information I have per Yahoo or MSN shows the book value is the same as the current stock price. Their debt appears to be low (debt to equity ratio around 0.3). Possibilities that they may be attractive for a buy out?
Two good ideas presented, stock buy-back vs drilling and a royalty trust. Draw back to stock buy-back vs. drilling is that if you are willing to throw in the towel and not drill, why not just liquidate. Royalty trust drawback is the genius's who rewrote the tax laws did not make this arrangement that favorable, probably taking us back to the liquidation option. The weather in the East favors us, be patient we can use the capital gains when Equity soars for our 2001 tax returns.