Correlation between Weatherford and Crude Oil on June 23
The correlation coefficient between Weatherford International’s stock price and WTI crude oil prices from June 23, 2016, to June 23, 2017, is 0.48.
As of June 23, 2017, Weatherford International’s (WFT) short interest as a percentage of its float was 16.2%—compared to 13.9% as of March 31, 2017.
On June 23, Weatherford’s implied volatility was 71.2%. Since its 1Q17 results were announced, its implied volatility has risen from ~55% to ~71%.
In the past year, Weatherford International (WFT) stock fell 32% until June 23, 2017. Weatherford underperformed the VanEck Vectors Oil Services ETF (OIH).
The land rig count is 128.0% or 510 higher than the rig count in the same period last year.
On June 19, 2017, approximately 81.0% of analysts tracking Nabors Industries rated it a “buy” or some equivalent. About 19.0% rated it a “hold.”
The correlation coefficient between the price of crude oil and Nabors Industries stock from June 19, 2016, to June 19, 2017, is 0.65.
On June 20, 2017, Nabors Industries’ (NBR) implied volatility was 61.0% compared to 47.0% when it announced its 1Q17 financial results on April 26, 2017.
Short interest in Nabors Industries (NBR) as a percentage of its float was 11.4% as of June 19, 2017, compared to 10.1% as of March 31, 2017.
On March 31, 2017, Nabors Industries (NBR) stock was 20.0% lower than it was on December 30, 2016. In 1Q17, NBR’s adjusted earnings were negative.
Nabors Industries’ (NBR) forward EV-to-EBITDA multiple compression versus its adjusted TTM EV-to-EBITDA is lower than the peer average in our group.
In the past year, as of June 19, 2017, Nabors Industries (NBR) has fallen 20.0%. It underperformed the VanEck Vectors Oil Services ETF (OIH), which tracks 25 OFS companies.
In 1Q17, Nabors Industries’ (NBR) total debt rose 2% compared to a year earlier, while its cash and marketable securities rose 3%.
Nabors Industries’ (NBR) cash from operating activities (or CFO) turned negative in 1Q17, compared to its positive CFO a year earlier.
On April 21, 2017, Nabors Industries (NBR) declared a dividend per share (or DPS) of $0.06. Nabors Industries’ dividend has remained unchanged throughout the past four quarters.
From 1Q16 to 1Q17, Nabors Industries’ EBITDA (earnings before interest, tax, depreciation, and amortization) margin contracted to 17.8% from 27.1%.
Now, let’s look at Nabors Industries’ (NBR) segment-by-segment performance in 1Q17. Its Drilling & Rig Services segment accounted for nearly all of its 1Q17 revenue. T
In 1Q17, the US rig count rose 25% compared to 4Q16. Since March 31, 2017, the US rig count has risen another 13% as of the week ended June 16, 2017.
Nabors Industries’ (NBR) management believes that many US upstream companies are set to increase their rig counts in 2017.
Nabors Industries (NBR) is one of the largest land-based drilling operators in the world. It’s had a weak run in the stock market so far in 2017.