Revenue by geography
In 4Q16, Superior Energy Services’ (SPN) revenue share from North America increased. In 4Q16, SPN’s North America revenue share was 77%, as compared to 75% in 3Q16. During the same period, SPN’s aggregate revenues rose 9%.
SPN makes up only 0.01% of the iShares Russell 3000 ETF (IWV). The energy sector makes up 6.1% of IWV, which tracks the Russell 3000 Index (RUA-INDEX) and consists of 3,000 large companies in the US. RUA-INDEX has risen 15% in the past year, as compared to the 10% rise in SPN’s stock price.
Flotek Industries’ (FTK) 4Q16 revenues fell 5% over 3Q16, while Tidewater’s (TDW) revenues fell 10%. Nabors Industries’ (NBR) revenues rose 4% from 3Q16 to 4Q16. (You can read more on FTK in Market Realist’s series Flotek Industries: Analysts’ Call after a Bullish Run.)
The US rig count
From December 30, 2016, to April 7, 2017, the US rig count rose ~28% and closed at 839. A higher US rig count can increase Superior Energy’s revenues and earnings in 1Q17. Crude oil prices have dropped ~1% since December 30, 2016, but the US rig count has continued to surge. (You can examine which way crude oil prices are moving now in Market Realist’s series Energy Investors: Reviewing Important Weekly Updates.)
Notably, the US rig count has risen ~83% in the past year as of April 7, 2017. The US rig count reached its multiyear high in September 2014. Since then, it has dropped 57% as of April 7, 2017. From December 2016 to March 2017, the international rig count rose ~2%. A higher international rig count could, of course, boost Superior Energy’s revenues and earnings in 1Q17.
Now let’s discuss what SPN’s current implied volatility suggests.