PXD [Archive]

**Hawk4Value** Mon Feb 27, 2006 6:09 pm

PXD
Hi Blast,

PXD stock price has dropped from $52 to recent $41.98. Co is using free cash flow to buy back stock and de-lever balance sheet. Reserves seem to be growing. Management seems to be good capital allocators. Is this a good entry point???????

Thanks.

**blast_investor** Mon Feb 27, 2006 10:54 pm

Hi Hawk4Value:

Although I am bullish on oil and energy sector. I used to avoid PXD like stock.

Here was my past comment on PXD valuation concern (1 year ago):
http://value-investing-forum.com/viewtopic.php?t=81

I would favor clear, simple, cheap US or Canada oil/gas stock that are land based, and that are not subject to hurricane risk or high deep-water drilling cost.

PXD had large asset in Gulf and in overseas. Foreign oil is risky and subject to political risk. Gulf is risky due to hurricane. Deep water drilling cost in Gulf is going through the roof. PXD sold some asset in Gulf and Argintina, this stock now has small % of asset in Africa, Latin America, and Gulf water.

Now PXD is mainly land based driller and North Amerca based. It is interesting now. I like what I read on recent development on this stock. But I have not studied this stock recently on its valuation yet.