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How Volatile Are the Worst Oilfield Service Companies?

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Worst oilfield service companies’ implied volatility

In this part, we’ll compare the implied volatility of the worst OFS (oilfield services and equipment) companies by expected earnings growth for 3Q16. On September 22, 2016, Schlumberger’s (SLB) implied volatility was ~23%. Since its 2Q16 financial results were announced on July 21, 2016, its implied volatility has remained nearly unchanged. Schlumberger accounts for 0.40% of the iShares MSCI ACWI Low Carbon Target ETF (CRBN). The energy sector makes up 5.9% of CRBN.

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Implied volatility comparison

On September 22, Patterson-UTI Energy’s (PTEN) implied volatility was 41.5%. Since its 2Q16 financial results were announced on July 28, 2016, its implied volatility fell from ~45% to the current level.

On September 22, Forum Energy Technologies’ (FET) implied volatility was ~52%. Since its 2Q16 earnings were announced on July 28, its implied volatility has remained nearly unchanged.

On September 22, Oil States International’s (OIS) implied volatility was ~41%. Since its 2Q16 earnings were announced on July 26, 2016, Oil States International’s implied volatility fell from ~45% to the current level.

On September 22, Oceaneering International’s (OII) implied volatility was ~34%. Since its fiscal 3Q16 financial results were announced on July 21, its implied volatility fell from ~41% to the current level.

Energy stocks are typically correlated with crude oil prices. Have top oilfield services companies’ correlation with the crude oil prices increased? We’ll discuss this in the next part.

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