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	REMARKS TO AMARILLO ROTARY CLUB “CROSSROADS FOR THE PETROLEUM INDUSTRY: RESTRUCTURING OR ‘BUSINESS AS USUAL?’” AMARILLO, TX JANUARY 19, 1984

12:00 P.M.

(SCRIPT TIME: 15 MIN.)

I. THANK YOU, JON.

A. (PERSONAL COMMENTS, HUMOR)

II. THIS IS AN EXCITING AND BUSY TIME FOR US AT MESA.

A. GULF INVESTMENT: 13.2% OF STOCK, $1 BILLION.

B. COMMITTED TO MAXIMIZING VALUE FOR ALL GULF SHAREHOLDERS.

C. PROXY RESULTS ENCOURAGING—50% DIDN’T SUPPORT MANAGEMENT.

D. EXPLAINED OUR VIEWS TO MANY SHAREHOLDERS.

III. BUT THE MESA-GULF STORY IS NOT THE ONLY ONE IN THE NEWS.

A. MOBIL’S ROYALTY TRUST.
          1. MANAGEMENT ARROGANCE.
          2. LITTLE VALUE.
          3. ALREADY HAVE TAX RULINGS—WHAT’S THEIR REAL MOTIVE?

B. TEXACO-GETTY.
          1. NO COMPLAINTS FROM GETTY STOCKHOLDERS.
          2. SIX MONTHS AGO, GETTY TRADED AT $65.
          3. NOW GETTY SHAREHOLDERS RECEIVING $125.
          4. RECOGNIZED GETTY’S POOR MANAGEMENT.
          5. OUTCOME FOR TEXACO SHAREHOLDERS UNCERTAIN.
          6. MAY DOUBLE RESERVES AND THE REPLACEMENT PROBLEM.
          7. THEY MAY BE DOUBLING THE TROUBLE.
          8. AND THEY AREN’T STRETCHING THE RESERVE LIFE INDEX.

THERE HAVE BEEN SUGGESTIONS THAT OTHER COMPANIES IN THE INDUSTRY WILL BE VULNERABLE TO SIMILAR TAKEOVERS AND ACTIONS RESULTING FROM SHAREHOLDER DISCONTENT.

A. TWO POINTS NEED TO BE MADE.
          1. AN EXAMPLE OF GROWING SHAREHOLDER AWARENESS.

A. NOT CONFINED TO OIL INDUSTRY.

B. MOST MANAGEMENTS AREN’T SUBSTANTIAL SHAREHOLDERS.