Schlumberger’s 1-Year Returns on July 14, 2017
Schlumberger stock and the industry
Schlumberger’s (SLB) one-year stock price has fallen 16.0% through July 14, 2017. In the past year, the Energy Select Sector SPDR ETF (XLE), the broader energy industry fund, has fallen 6.0%. The VanEck Vectors Oil Services ETF (OIH) has a one-year return of -14.0%. SLB has underperformed both OIH and XLE in the past year. OIH tracks 25 OFS (oilfield services and equipment) companies. The Dow Jones Industrial Average (DIJA-INDEX) has risen 17.0% in the past year. The energy sector makes up 5.9% of the Dow Jones Industrial Average Index (DJIA-INDEX). Schlumberger has significantly underperformed the SPDR S&P 500 ETF (SPY), which rose 14.0% in the same period. You can read more about SLB in Market Realist’s Schlumberger: Bumpy Roads Might Be in Its Future.
Crude oil price and rigs
The WTI (West Texas Intermediate) crude oil price has risen 1.0% in the past year. The US rig count rose 113.0% in the past year despite minimal changes in the price of crude oil. You can read the latest on crude oil prices and production in Market Realist’s Memo to Energy Investors—Watch for Rising Crude Oil Production. You can also read the valuations for prominent OFS companies such as Halliburton (HAL) and National Oilwell Varco (NOV) in Market Realist’s Why OFS Stocks Are Seeing Bearish Trends.
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Recent events that could affect Schlumberger’s returns
- Schlumberger signed a three-way agreement with FIRST Exploration & Production and Nigerian National Petroleum on June 29, 2017, to develop an energy field in offshore Nigeria. SLB will provide project development services.
- On June 20, 2017, Schlumberger rejected TRC Capital’s bid to acquire less than 1.0% of Schlumberger’s outstanding shares in a mini-tender offer.
- As for alliances and partnerships, Schlumberger announced on June 14, 2017, a strategic partnership with Seitel to reimage and acquire new geophysical data across onshore Mexico. In May 2017, SLB signed a memorandum of understanding with Saudi Arabia’s Saudi Aramco. In March 2017, Schlumberger and Weatherford International (WFT) proposed a joint venture called OneStimSM.
In this series, we’ll look at investors’ short interest in Schlumberger and its correlation with crude oil. Let’s start with its implied volatility.