Mac,

Thanks for the research report on EOG. Here are my observations:

Gas Sales 916,000/day x 365 days = 334,340,000/year

Estimated Gas Prices $985,721,000/334,340,000= $2.95/mcf

Actual gas prices are around $1.00/mcf higher and rising.

Recalc of EPS with more accurate gas prices:
(334,340,000 mct X $1/mcf)/116,897,000 shares outst = $2.86 additional EPS
X 12 P/E multiple = $34 a share

That is just a back of the envelope valuation based on gas prices. I think
crude price are undervalued by the tune of $10/share.

Current price 37
Nat. Gas 34
Crude 10

Total 81

Can you take a look at these numbers and play devil's advocate? To me this
looks like the best stock to own Also can you send me a report on Calpine,
Tosco, and SLB?

Thank you,

Phillip