But if I knew how to manage my portfolio safer and smarter than most hedge fund managers, I could realistically grow my wealth.
Must-know: US energy ETFs after the recent sell-off
The SPDR S&P 500 ETF (SPY) is even broader. It has also done well. SPY gives you exposure to the entire U.S. economy—it tracks the S&P 500 Index.
Refiners’ profits are driven by the difference in the prices of refined products—like gasoline and diesel—and the cost of crude oil. Refining companies didn’t lose as much as their upstream peers.
Major losers in the OFS sector were led by Weatherford International (WFT). It had an ~26% drop. It was followed by Baker Hughes (BHI) and Halliburton (HAL).
The best performers in the sector didn’t move as energy prices slumped more than 20%. All of the best performers gained. The sector’s two top performers were KMP and EPB.
Even the worst performer, ONEOK Inc. (OKE) lost barely ~12%. During the same four months, energy prices lost nearly twice as much.
Marathon Oil (MRO) is a “value” candidate. It has a strong free cash flow (or FCF) yield, low valuation multiples—particularly its near book valuation—and muted growth.
Southwestern Energy declined by ~31%. Chesapeake Energy declined by ~30%. When they entered the energy decline, they were already weak from historically low gas prices.
There’s only one sector that didn’t decrease—master limited partnerships (or MLPs). MLPs are special corporate structures that pay most of their earnings as distributions to unit holders. MLPs usually have steady growth.
Recently, global energy prices decreased. This is in stark contrast to just four months ago. Energy prices were near multi-year highs. Energy prices peaked near mid-June.
Schlumberger’s yearly price-to-earnings ratio is in line with the group. Haliburton has the lowest price-to-earnings ratio.
Schlumberger expects the global economy to stabilize on the basis of a U.S. economy that is gathering strength. Meanwhile, the company continues to have concerns about growth in China and Europe.
In 3Q14, Schlumberger’s revenues from its international operations, or operations outside the U.S., increased 5% to $8.30 billion from $7.91 billion in 3Q13. Earnings before tax , or EBT, from its international operations increased 11% to $2.04 billion, from $1.84 billion in 3Q13.
Schlumberger’s broadband sequence hydraulic fracturing technique was used to increase operational efficiency in the Eagle Ford shale in South Texas. This enhanced normalized production by 22% for BHP Billiton Limited (BHP).
Revenues improved primarily due to increased activity following the seasonal western Canada spring break-up. Drilling activity typically goes down in Canada during the spring.
Revenues increased primarily on account of higher offshore activity in Mexico, Russia, and North America. Rig revenue from Saxon also attributed to the growth.
In Angola, Schlumberger won a three-year project contract with Total—exploration & production. Schlumberger used its marine isometric seismic technology for this project—an offshore multi-sensor survey for 3D sample data collection.
In 3Q14, Schlumberger earned ~38% of its revenues from drilling, 37% from production, and 25% from its reservoir characterization segment. In comparison, the 3Q13 revenue split was 37% drilling, 35% production, and 28% reservoir characterization.
For the nine months ended September 30, 2014, Schlumberger ’s revenues went up by 7.7% to $35.93 billion. For the same nine months of 2013, the company recorded $33.36 billion.
The company recorded total revenues of $12.64 billion for 3Q14, up 8.9% from $11.60 billion recorded in 3Q13. Revenues for the latest quarter increased mostly due to growth in its international and North American operations.
Schlumberger Limited is a Houston-based energy company. It provides technology, integrated project management, and information solutions to oil and gas exploration and production (or E&P) companies around the world.