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Analyzing Tidewater’s Stock Price Returns

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Stock price returns for Tidewater

From November 2013 to November 2016, Tidewater’s (TDW) stock price was at its highest level in January 2014. It came close to that price in June 2014. Since then, Tidewater’s stock price fell nearly 95%. Since October 21, 2016, when Tidewater first received an extension of its debt covenant waiver, its stock price fell 24%. We discussed this in detail in Part 1.

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OFS stocks versus the market

Between November 2013 and November 2016, Halliburton’s (HAL) stock price was at its highest level in July 2014. Since then, it fell 31%. From November 2013 to November 2016, the VanEck Vectors Oil Services ETF (OIH) was at the highest level in late June 2014. Since then, OIH fell 44%. OIH is an ETF tracking an index of 25 OFS companies.

The SPDR S&P 500 ETF (SPY) rose significantly from November 2013 to November 2016. During this period, SPY rose 30%. In the past three years, the Energy Select Sector SPDR ETF (XLE) was at its highest level in June 2014. Since then, XLE fell 23%. The OFS industry accounts for 17% of XLE.

Why OFS stock prices moved

In the past three years, while Tidewater underperformed the industry, its larger market cap peer Halliburton outperformed the industry ETF. Many of the OFS stocks reached a high in mid-2014 and then fell. It followed the movement in crude oil prices. Crude oil prices were the highest in June 2014, but they fell since then.

In 2016, as crude oil prices recovered, so did most of the OFS stocks. However, Tidewater continued to underperform due to its debt covenant violation.

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