|
|
|
ONLINE FEATURES
Book Reviews
BW Video
Columnists
Interactive Gallery
Newsletters
Past Covers
Philanthropy
Podcasts
Special Reports
BLOGS
Auto Beat
Bangalore Tigers
Blogspotting
Brand New Day
Byte of the Apple
Economics Unbound
Eye on Asia
Fine On Media
Green Biz
Hot Property
Investing Insights
Management IQ
NEXT: Innovation
NussbaumOnDesign
Tech Beat
Working Parents
TECHNOLOGY
J.D. Power Ratings
Product Reviews
Tech Stats
Wildstrom: Tech Maven
AUTOS
Home Page
Auto Reviews
Classic Cars
Car Care & Safety
Hybrids
INNOVATION
& DESIGN Home Page Architecture Brand Equity Auto Design Game Room SMALLBIZ Smart Answers Success Stories Today's Tip INVESTING Investing: Europe Annual Reports BW 50 S&P Picks & Pans Stock Screeners Free S&P Stock Report SCOREBOARDS Hot Growth 100 Mutual Funds Info Tech 100 S&P 500 B-SCHOOLS Undergrad Programs MBA Blogs MBA Profiles MBA Rankings Who's Hiring Grads |  |
NOVEMBER 24, 2003
A Deeper Shine At Patina  How much higher can Patina Oil & Gas (POG
) fly? Its shares have shot from 30 in May to 44.54 on Nov. 12, and some worry they might get clobbered if energy prices tumble. But Stephen Leeb of Leeb Capital Management, author of a new book, The Oil Factor, says oil and gas prices will climb over time and that low-cost producer Patina is a "compelling" play. Leeb, who owns shares, sees the stock at 60 in a year. Even if natural gas prices drop -- from $5 per 1 million BTUs to $3.50, say -- Patina's earnings will keep growing, he maintains. Output and reserves are on the rise, because Patina extracts fuel so cheaply. Its properties are in Colorado's Wattenberg Field, in southern Oklahoma, and in the Texas Panhandle. Leeb sees Patina upping production more than 15% a year -- for five years. It generates strong cash flow to fund acquisitions. In October, Patina bought a big stake in Denver's Cordillera Energy Partners, which has vast natural gas reserves. Earnings should hit $3.11 a share in 2003 and $3.95 in 2004, up from $1.75 in 2002, says Brad Beago of Crédit Lyonnais Securities, who has an "add" rating on the stock. He owns shares, and Lyonnais has done banking for Patina. Beago says Patina's "low-risk" operations make its outlook "predictable."
Note: Unless otherwise noted, neither the sources cited in Inside Wall Street nor their firms hold positions in the stocks under discussion. Similarly, they have no investment banking or other financial relationships with them.  By Gene G. Marcial
BW MALL
SPONSORED LINKS
Get BusinessWeek directly on your desktop with our RSS feeds.
Buy a link now! Add BusinessWeek news to your Web site with our headline feed. Click to buy an e-print or reprint of a BusinessWeek or BusinessWeek Online story or video. To subscribe online to BusinessWeek magazine, please click here. Learn more, go to the BusinessWeekOnline home page  | | |
 Copyright 2003, by The McGraw-Hill Companies Inc. All rights reserved.Terms of Use | Privacy Policy |
Printer-Friendly Version
