Alex Chamberlin

The EIA expects less natural gas production at four key US shales by January 2017 compared to November 2016. It expects production to rise at three key US shales.

The U.S. onshore, or land-based, rig count increased by four rigs—from 1,865 to 1,869—during the week ending September 19. Land-based rigs include 13 inland water rigs. This is the highest onshore rig count in the past two years. It’s the highest rig count since August 17, 2012. This marks the eighth increase in the past ten weeks.

The Global X MLP & Infrastructure ETF (MLPX) tracks the Solactive MLP & Energy Infrastructure Index. The index consists of midstream energy infrastructure MLPs and corporations.

Schlumberger’s trailing-one-year stock price has fallen 12% as of June 16, 2017, while XLE, the broader energy industry ETF, has fallen 3%.

In 2015, Kinder Morgan (KMI) has put in place a strong project pipeline that can increase capex by 21% to ~$4.4 billion.

Overall, ExxonMobil’s Downstream business produced 46% less earnings in the fourth quarter of 2014 compared to the same quarter a year ago.

In the past year, Weatherford International’s (WFT) stock has fallen 28% as of August 11, 2017.

This was the seventh straight weekly decline in the Permian Basin oil rig count. Overall, the weekly US crude oil rig count was down 4%.

National Oilwell Varco’s cash from operating activities (or CFO) rose by more than four times in 1Q16 compared to 1Q15.

In Latin America, BHI expects year-end product sales to increase. It also expects the offshore Mexico rig activity to increase.

The rate of decline in the natural gas rig count has slowed in the past four weeks, during which only six rigs went offline.

Halliburton’s forward EV-to-EBITDA multiple compared to its adjusted TTM EV-to-EBITDA is lower than the peer average in our group.

On March 31, 2017, National Oilwell Varco (NOV) stock was 7.0% higher than on December 30, 2016. In 1Q17, its adjusted earnings were negative.

WFT, SPN, and FMSA have significantly underperformed the SPDR S&P 500 ETF (SPY), which has produced 23.0% returns since November 3, 2016.

For most of the last two years, WTI crude oil has been range-bound between ~$85 per barrel and ~$110 per barrel.

Since the week ending September 29, 2017, Weatherford International stock has fallen 7% until October 6, 2017. OIH has generated -2% returns.

Weatherford International’s (WFT) short interest as a percentage of its float was 7.6% as of July 8, 2016, compared to 5.3% on March 31.

NOW’s (DNOW) year-to-date returns as of May 11 were 33.5%.

Baker Hughes reported that the weekly US crude oil rig count rose by two rigs—from 572 to 574—in the week ended November 13, the first rise in a while.

Schlumberger (SLB) and Halliburton (HAL) saw higher revenues from North America in 1Q18—compared to the previous year.

Let’s discuss National Oilwell Varco’s growth drivers. The fall of the Wellbore Technology segment’s operating income was restricted by expense reduction.

National Oilwell Varco’s (NOV) capital expenditure or capex fell ~32% in fiscal 2017—compared to its capex spend in fiscal 2016.

As a result of steeply falling CFO, Halliburton’s free cash flow deteriorated to a negative $499 million in 3Q15 from a negative $71 million a year ago.

Schlumberger’s net debt to TTM EBITDA shot up from 4Q14 to 4Q15. In 4Q15, its net-debt-to-EBITDA multiple was 0.84, or 71% higher than one year ago.

Between December 2014 and December 2016, Baker Hughes (BHI) stock hit its peak in April 2015. It troughed at ~$39 in January 2016.

Natural gas prices in the northeastern US have increasingly been below the Henry Hub price. This is primarily because of the Northeast’s increased access to Marcellus natural gas production.

Schlumberger’s (SLB) correlation with the price of crude oil from January 26 to February 2, 2018, was 0.79.

The EIA expects less natural gas production at four key US shales by December compared to October, but it expects production to rise at three key shales.

ION Geophysical’s (IO) year-to-date returns as of May 11 were 37.5%.

On September 27, Weatherford International (WFT) disclosed that the SEC resolved the investigation into the company’s income tax–related accounting issues.

According to the U.S. Energy Information Administration (or EIA), the Permian Basin is the largest crude oil–producing region in the US.

In 3Q17, Schlumberger’s FCF was $1.1 billion. The FCF includes Schlumberger’s expenditure on SPM investments and multiclient seismic data.

According to oil service company Baker Hughes (BHI), the horizontal rig count was up by one rig in the week ended August 21, 2015.

In 4Q14, Sunoco’s adjusted revenues fell short of estimates by ~19%.

The U.S. total rig count decreased by 17 rigs—from 1,913 to 1,896—during the week ending August 22. This marked the first rig count decline in the past five weeks. The decline was also the largest since late September 2013.

Schlumberger stock will likely close between $71.88 and $68.30 in the next seven days. Sclumberger’s stock price was $70.09 on May 26, 2017.

Now that Transocean has released its 4Q15 earnings, a whopping 56% of analysts have recommended a “sell.”

Flotek Industries’ (FTK) management considers the current energy market environment to be challenging for the oilfield services industry.

Enterprise Products Partners (EPD) is the largest company by market capitalization and enterprise value, or EV, among its closest peers. By market cap, Williams Companies (WMB) follows next.

In this series, we’ll analyze National Oilwell Varco’s growth drivers, balance sheet, and dividends.

On March 3, 2017, Schlumberger’s implied volatility was 16.5%. Since its 4Q16 financial results were announced, Schlumberger’s implied volatility has fallen marginally.

Oil States International (OIS) ranks fourth on our list of the top five revenue growing OFS companies, according to analysts.

In this environment of crude oil prices declining sharply and staying low, investors continue to favor stocks that are increasing investments.

RPC Inc.’s internal cash generation was adequate to cover its external obligations in 2015. Dril-Quip internal cash generation was more than adequate.

Nabor Industries’s Drilling & Rig Services segment accounted for nearly all of the company’s revenues in 2Q16.

RSP Permian recorded 4.6% fiscal 3Q15 capital expenditure growth. It spent $403 million on capex in fiscal 3Q15 compared to $385 million in fiscal 3Q14.

What are Schlumberger’s views on North America?  Schlumberger (SLB) expects the North American onshore market to continue to improve in 2017. In Schlumberger’s 1Q17 earnings press release, chairman and CEO Paal Kibsgaard stated that “at present, the region in the world showing clear signs of increased E&P[1.exploration and production] investments in 2017 is North America […]

Schlumberger’s (SLB) one-year stock price fell 21.0% as of August 11, 2017. In the past year, the Energy Select Sector SPDR ETF (XLE) has fallen 7.0%.

In 2016, Patterson-UTI Energy (PTEN) recorded $915.8 million in revenues—52% lower compared to 2015. In 2016, the company’s net loss was $318.6 million.

The expected 2Q15 earnings are 37% lower than 1Q15 adjusted EPS. Weaker crude oil prices and reduced spending by North American upstream energy producers are to blame.

Buckeye Partners L.P. (BPL) is a master limited partnership operating in the midstream oil and gas industry in the United States.

Schlumberger’s (SLB) one-week returns were 2.0% as of September 22, 2017. Since September 15, the Energy Select Sector SPDR ETF (XLE) has risen 2.0%.

Approximately 90% of the analysts tracking Halliburton (HAL) recommended a “buy,” ~8% recommended a “hold,” and the rest recommended a “sell.”

Flotek Industries (FTK) stock has fallen 32% in the past year as of June 30, 2017, compared with the 5% fall we’ve seen in the Energy Select Sector SPDR ETF (XLE).

Baker Hughes’s (BHI) management believes that international upstream operations will continue to stay pressured.

Rig counts tell us how many rigs are actively drilling for oil and gas. They can be an indication of oil and gas producers’ confidence.

Halliburton’s (HAL) one-week stock price didn’t change in the week ending October 13, 2017. Since October 6, 2017, XLE also remained unchanged.

Approximately 47% of analysts tracking Core Laboratories (CLB) rate it a “buy” or some equivalent. Approximately 41% rate the company a “hold” or an equivalent.

In this article, we’ll discuss how our four oilfield equipment and services (or OFS) companies have fared in terms of revenue growth in 4Q16 compared to 4Q15.

Midstream’s earnings recovery in year-to-date 2014 was aided by higher natural gas liquids (NGL) prices.

Economist Karr Ingham expects that two-thirds of the Texas rigs at work will be laid down. That’s about 600 rigs if the price of crude oil stays low.

The correlation coefficient between Weatherford International’s (WFT) stock price and WTI crude oil prices on October 13–20, 2017, was -0.05.

National Oilwell Varco (NOV) recorded total revenues of ~$1.7 billion in 1Q17, which was 20.5% lower than the ~$2.2 billion it recorded in 1Q16.

ETP’s interest in Sunoco Logistics (SXL) gives ETE acccess to SXL’s geographically diverse portfolio of complementary pipeline, terminalling, and acquisition and marketing assets.

In the week ending September 18, 2015, the US offshore rig count didn’t change. The offshore rig counts have averaged 33 over the past eight weeks.

By adjusted EBITDA, the US Drilling segment saw the strongest growth of 130% in the second quarter—compared to the second quarter of 2017.

On October 13, Halliburton proposed to acquire Baker Hughes’ shares without prior notice. After receiving BHI’s counter proposal, Halliburton refused to increase its first value proposal.

Patterson-UTI Energy (PTEN) released its 4Q15 financial results on February 4, 2016. The company recorded total revenues of $338.5 million in 4Q15, down 62% from $901.2 million recorded in 4Q14.

PDC Energy’s 2015 forward EV-EBITDA multiple is 6.6x. So the sharply lower forward multiple indicates that Wall Street expects PDCE’s EBITDA to improve sharply in 2H15.

Out of the current 1,575 oil rigs at work, the majority—roughly 552—are in the Permian Basin. The Eagle Ford has 196 rigs, the Williston and Bakken have 192 rigs, and the Mississippian has 79 rigs.

In this series, we’ll compare Baker Hughes, a GE company, and National Oilwell Varco, two top oilfield equipment and services companies.

Short interest in Schlumberger (SLB) stock as a percentage of its float was ~1.2% on March 3, 2017, a marginal fall compared to December 30, 2016.

Generally, natural gas burns more cleanly than coal. Coal has the highest carbon intensity among major fossil fuels.

Schlumberger’s management is skeptical about a sustained energy market recovery due to deficit cash flow generation and low productivity improvement.

From November 2013 to November 2016, Schlumberger’s (SLB) stock price was at its highest level in January 2014. It came close to that price in June 2014.

Seventy Seven Energy (SSE) is a well-field services company that carries out activities like drilling, hydraulic fracturing, rig relocation, and fluid handling and disposal.

On Friday, August 21, Baker Hughes (BHI) disclosed the US rig count at noon. WTI (West Texas Intermediate) crude oil remained almost unchanged near ~$40.13.

By the end of March 2015, the horizontal rig count was up by ~125% compared to the number of rigs in January 2007.

Atlas Pipeline Partners (APL) released its financial information for 1Q14 on May 5, 2014.

Nabors Industries’ valuation, expressed as a TTM PE (price-to-earnings) multiple, isn’t available due to negative adjusted earnings.

Schlumberger’s forward PE (price-to-earnings) multiple reflects analysts’ expectation of lower earnings in the next four quarters.

Although pipelines are the cost-effective way to transport crude oil, they require huge initial investment and are often impeded by regulations from the government agencies.

Schlumberger recorded topline and bottom-line growth in its North American operations due to continued efficiency improvements and new technology.

Horizontal rig counts decreased by 35 from the previous week’s count. This was the seventh straight weekly fall. Currently, there are 1,301 horizontal rigs.

Every week, the U.S. Energy Information Administration (or EIA) reports figures on natural gas inventories, or the amount of natural gas stored in facilities across the U.S.

Approximately 35% of Wall Street analysts tracking ExxonMobil (XOM) rate it a “buy.” Approximately 10% of the analysts recommend a “sell.”

After analyzing BP’s (BP) 2Q15 performance by segment, we’ll now discuss its year-to-date (or YTD) revenues and earnings.

Nabors Industries (NBR), one of the largest land-based drilling operators in the world, had a steady run in the stock market in 2016.

In this article, we’ll look at Wall Street analysts’ forecasts for Halliburton (HAL) shares following the company’s fiscal 1Q16 earnings release.

The correlation coefficient between Schlumberger’s (SLB) stock price and WTI crude oil prices from January 2, 2017, to January 2, 2018, was 0.48.

The short interest in Schlumberger (SLB), as a percentage of its float, is 1.2% as of December 22—compared to ~1.3% as of September 30.

Nabors Industries (NBR), one of the largest land-based drilling operators in the world, has had a steady run in the stock market in 2016.

Based on its implied volatility, Schlumberger (SLB) stock could close between $65.44 and $70.46 in the next seven days.

The correlation coefficient between crude oil prices and Patterson-UTI Energy (PTEN) from August 21, 2016, to August 21, 2017, is 0.63.

Oilfield service company Baker Hughes’s (BHI) crude oil rig count decreased by 84 last week, from 1,140 to 1,056.

In the past year, Schlumberger’s stock price trended up. Its revenues stayed steady in 3Q16 and 2Q16 after falling in the previous three quarters.

Petrobras’ (PBR) oil and gas production from Brazil was more than 90% of its total upstream energy production. In 2013, ~96% of its total reserves were in Brazil.

In the second quarter, TechnipFMC recorded total revenues of ~$2.96 billion, down 23% from ~$3.85 billion in Q2 2017.

Superior Energy Services’ (SPN) CFO (cash from operating activities) fell 63% in 3Q16 year-over-year. SPN generated $48 million CFO in 3Q16.

Spectra Energy’s Western Canada segment saw volume increase ~20% in 2014 over the previous year. In 4Q14, volume increased 14% over 3Q14.