More From Alex Chamberlin
January 2017 EIA Estimates: US Shale Gas Production Could Fall
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.
Must-know: Why onshore rig counts are at a 2-year high
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.
An investor’s guide to MLPX and its holdings, like Spectra Energy
The Global X MLP & Infrastructure ETF (MLPX) tracks the Solactive MLP & Energy Infrastructure Index. The index consists of midstream energy infrastructure MLPs and corporations.
Inside Schlumberger’s 1-Year Returns as of June 16
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%.
Will Kinder Morgan benefit from increased 2015 capex?
In 2015, Kinder Morgan (KMI) has put in place a strong project pipeline that can increase capex by 21% to ~$4.4 billion.
Earnings evaporate in ExxonMobil’s Downstream segment
Overall, ExxonMobil’s Downstream business produced 46% less earnings in the fourth quarter of 2014 compared to the same quarter a year ago.
Inside Weatherford’s Fall over the Past Year
In the past year, Weatherford International’s (WFT) stock has fallen 28% as of August 11, 2017.
Permian Basin activity: A key indicator of energy sector health
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%.
Analyzing National Oilwell Varco’s Free Cash Flow
National Oilwell Varco’s cash from operating activities (or CFO) rose by more than four times in 1Q16 compared to 1Q15.
Why next quarter looks better for BHI’s international markets
In Latin America, BHI expects year-end product sales to increase. It also expects the offshore Mexico rig activity to increase.
Natural Gas Rigs Help Slow Overall Drop in Rig Count Last Week
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 Valuation Compared to Its Peers
Halliburton’s forward EV-to-EBITDA multiple compared to its adjusted TTM EV-to-EBITDA is lower than the peer average in our group.
National Oilwell Varco’s Historical Valuation in Context
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, FMSA, and SPN: Returns and Outlook after 3Q17
WFT, SPN, and FMSA have significantly underperformed the SPDR S&P 500 ETF (SPY), which has produced 23.0% returns since November 3, 2016.
Why improvement in Libya pushed down the crude price last week
For most of the last two years, WTI crude oil has been range-bound between ~$85 per barrel and ~$110 per barrel.
Did Weatherford Stock Fall in the Week to October 6?
Since the week ending September 29, 2017, Weatherford International stock has fallen 7% until October 6, 2017. OIH has generated -2% returns.
What’s Happened to WFT’s Short Interest since 1Q16?
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.
Is NOW’s Stellar Performance in 2018 Warranted?
NOW’s (DNOW) year-to-date returns as of May 11 were 33.5%.
In-Depth: US Crude Oil Rig Count Rose after Ten Weeks
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.
US Rig Count Impacted SLB and HAL in 1Q18
Schlumberger (SLB) and Halliburton (HAL) saw higher revenues from North America in 1Q18—compared to the previous year.
Analyzing National Oilwell Varco’s Growth Drivers
Let’s discuss National Oilwell Varco’s growth drivers. The fall of the Wellbore Technology segment’s operating income was restricted by expense reduction.
SLB, HAL, NOV, and BHGE: Comparing the Capex Growth
National Oilwell Varco’s (NOV) capital expenditure or capex fell ~32% in fiscal 2017—compared to its capex spend in fiscal 2016.
Why Halliburton’s Free Cash Has Been Plummeting
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.
Which Way Will Schlumberger’s Indebtedness Go?
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.
Will a Partnership with GE Improve BHI’s Returns?
Between December 2014 and December 2016, Baker Hughes (BHI) stock hit its peak in April 2015. It troughed at ~$39 in January 2016.
Marcellus Shale: Why it’s key for US natural gas
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.
How Schlumberger Reacted to Crude Oil Prices Last Week
Schlumberger’s (SLB) correlation with the price of crude oil from January 26 to February 2, 2018, was 0.79.
EIA Projections for December 2015: Key US Shale Natural Gas Production
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.
Why ION Geophysical Has Outperformed the Industry Year-to-Date
ION Geophysical’s (IO) year-to-date returns as of May 11 were 37.5%.
SEC Asks Weatherford International to a Pay Penalty
On September 27, Weatherford International (WFT) disclosed that the SEC resolved the investigation into the company’s income tax–related accounting issues.
Why the Permian Basin is the key indicator for oil rig counts
According to the U.S. Energy Information Administration (or EIA), the Permian Basin is the largest crude oil–producing region in the US.
Schlumberger’s Free Cash Flow in 3Q17
In 3Q17, Schlumberger’s FCF was $1.1 billion. The FCF includes Schlumberger’s expenditure on SPM investments and multiclient seismic data.
Horizontal Rigs Continued to Increase Last Week
According to oil service company Baker Hughes (BHI), the horizontal rig count was up by one rig in the week ended August 21, 2015.
Sunoco Logistics’ 4Q14 Earnings Fell Short of Estimates
In 4Q14, Sunoco’s adjusted revenues fell short of estimates by ~19%.
Must-know: Why US rigs lost the most in 11 months
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’s 7-Day Stock Price Forecast on May 26
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.
Wall Street’s Forecasts for Transocean after 4Q15 Earnings
Now that Transocean has released its 4Q15 earnings, a whopping 56% of analysts have recommended a “sell.”
What Are Flotek Industries’ Future Growth Drivers?
Flotek Industries’ (FTK) management considers the current energy market environment to be challenging for the oilfield services industry.
Snapshot: Valuing Williams Companies compared to its peers
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.
What’s Ahead for National Oilwell Varco’s Stock Price?
In this series, we’ll analyze National Oilwell Varco’s growth drivers, balance sheet, and dividends.
What Schlumberger’s Implied Volatility Suggests
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.
What Might Happen to Oil States’ Revenues in Q2 2018?
Oil States International (OIS) ranks fourth on our list of the top five revenue growing OFS companies, according to analysts.
Investors respond differently to upstream companies’ capex plans
In this environment of crude oil prices declining sharply and staying low, investors continue to favor stocks that are increasing investments.
Understanding Fund Generation among Major OFS Companies
RPC Inc.’s internal cash generation was adequate to cover its external obligations in 2015. Dril-Quip internal cash generation was more than adequate.
Does Nabors Industries Expect Rig Count to Rise in the Near Term?
Nabor Industries’s Drilling & Rig Services segment accounted for nearly all of the company’s revenues in 2Q16.
Comparing Capex Growth for 4 US Upstream Companies
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 Schlumberger Expects for 2017
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 1-Year Returns on August 11
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%.
What Drove Patterson-UTI Energy’s Performance in 4Q16?
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.
Halliburton’s Expected 2Q15 Earnings Signal More Weakness
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.
Must-know: An introduction to Buckeye Partners
Buckeye Partners L.P. (BPL) is a master limited partnership operating in the midstream oil and gas industry in the United States.
Schlumberger’s 1-Week Returns on September 22
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%.
Wall Street Analysts’ Targets for SLB, HAL, NOV, and WFT
Approximately 90% of the analysts tracking Halliburton (HAL) recommended a “buy,” ~8% recommended a “hold,” and the rest recommended a “sell.”
Can Asset Sales Improve Flotek’s Returns in 2017?
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 Management on Its 3Q16 Outlook
Baker Hughes’s (BHI) management believes that international upstream operations will continue to stay pressured.
Does a falling US rig count signal a trend?
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.
What Were Halliburton’s 1-Week Returns on October 13?
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.
What Do Almost Half of Core Laboratories’s Analysts Recommend?
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.
National Oilwell Varco Is Losing More Revenue than Its Peers
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.
Phillips 66’s Midstream segment volumes are on track
Midstream’s earnings recovery in year-to-date 2014 was aided by higher natural gas liquids (NGL) prices.
Texas rig count continues to lose ground
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.
How Did Weatherford React to Crude Oil Price Changes?
The correlation coefficient between Weatherford International’s (WFT) stock price and WTI crude oil prices on October 13–20, 2017, was -0.05.
Did National Oilwell Varco’s 1Q17 Earnings Beat Estimates?
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.
Why investors can expect synergies from the combined assets
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.
US Offshore Rig Count Was Steady in the September 18 Week
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.
Analyzing Nabors Industries’ Segments in Q2 2018
By adjusted EBITDA, the US Drilling segment saw the strongest growth of 130% in the second quarter—compared to the second quarter of 2017.
Behind the scenes of the Halliburton-Baker Hughes merger
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’s 4Q15 Earnings Beat Wall Street Estimates
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.
Is PDC Energy Trading at a Premium?
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.
Why the Permian Basin has been driving horizontal rig count records
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.
Comparing Net Debt for BHGE and NOV Post-1Q18
In this series, we’ll compare Baker Hughes, a GE company, and National Oilwell Varco, two top oilfield equipment and services companies.
Schlumberger’s Short Interest Has Fallen: What Does It Mean?
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.
Must-know: Why coal producers are wary of the EPA’s proposal
Generally, natural gas burns more cleanly than coal. Coal has the highest carbon intensity among major fossil fuels.
Schlumberger: Returns and Growth Estimates after 1Q17
Schlumberger’s management is skeptical about a sustained energy market recovery due to deficit cash flow generation and low productivity improvement.
Analyzing Schlumberger’s Stock Price Returns
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.
Snapshot: Comparing Seventy Seven Energy to its peers
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.
WTI Crude Oil Prices Are Weak as Oil Rigs Increase
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.
Horizontal Rig Count Falls for 19th Consecutive Week
By the end of March 2015, the horizontal rig count was up by ~125% compared to the number of rigs in January 2007.
Must-know: Atlas Pipeline’s first quarter earnings analysis
Atlas Pipeline Partners (APL) released its financial information for 1Q14 on May 5, 2014.
How Does Nabors Industries’ Valuation Compare to Its Peers?
Nabors Industries’ valuation, expressed as a TTM PE (price-to-earnings) multiple, isn’t available due to negative adjusted earnings.
How Is SLB’s Current Valuation Compared to Peers?
Schlumberger’s forward PE (price-to-earnings) multiple reflects analysts’ expectation of lower earnings in the next four quarters.
Why price differential and rail competition challenge Bakken
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’s North American operations drove growth in 4Q14
Schlumberger recorded topline and bottom-line growth in its North American operations due to continued efficiency improvements and new technology.
Why horizontal and vertical rig counts are down sharply
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.
Must-know: Why natural gas storage figures matter to investors
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.
ExxonMobil: Wall Street analysts call it
Approximately 35% of Wall Street analysts tracking ExxonMobil (XOM) rate it a “buy.” Approximately 10% of the analysts recommend a “sell.”
BP’s Year-to-Date Net Income Crashed on Special Charges
After analyzing BP’s (BP) 2Q15 performance by segment, we’ll now discuss its year-to-date (or YTD) revenues and earnings.
Why Nabors Industries’ Stock Price Seems Bullish
Nabors Industries (NBR), one of the largest land-based drilling operators in the world, had a steady run in the stock market in 2016.
What’s Wall Street Saying for Halliburton after Q1 Earnings?
In this article, we’ll look at Wall Street analysts’ forecasts for Halliburton (HAL) shares following the company’s fiscal 1Q16 earnings release.
Schlumberger Reacts to Crude Oil Price Change
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.
Short Interest in Schlumberger Fell: What Does It Mean?
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.
Does Nabors Industries’ Share Price Still Look Strong?
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.
Schlumberger’s Stock Price Forecast for the Next 7 Days
Based on its implied volatility, Schlumberger (SLB) stock could close between $65.44 and $70.46 in the next seven days.
Patterson-UTI Energy’s Correlation with Crude Oil on August 21
The correlation coefficient between crude oil prices and Patterson-UTI Energy (PTEN) from August 21, 2016, to August 21, 2017, is 0.63.
US crude oil rig count crashes to lowest since August 2011
Oilfield service company Baker Hughes’s (BHI) crude oil rig count decreased by 84 last week, from 1,140 to 1,056.
Why Is Schlumberger’s Stock Price Bullish?
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.
Why Brazil is a long-term commitment for Petrobras
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.
What Drove TechnipFMC’s Second-Quarter Earnings?
In the second quarter, TechnipFMC recorded total revenues of ~$2.96 billion, down 23% from ~$3.85 billion in Q2 2017.
Understanding Superior Energy’s Free Cash Flow Estimates
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 sees volume gains and losses
Spectra Energy’s Western Canada segment saw volume increase ~20% in 2014 over the previous year. In 4Q14, volume increased 14% over 3Q14.