Cameron International Corp
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.
What’s Schlumberger’s Outlook for the Rest of 2015?
Schlumberger expects drilling activity headwinds to continue in 2015. Lower E&P activity and declining rig count should also hurt other drilling equipment and service providers.
Lee Cooperman’s Omega Advisors opens a new position in T-Mobile
Cooperman seems to be following the trend of other other hedge funds such as Third Point and Paulson to capitalize on consolidation in the telecom space.
Subsea Segment’s Performance Is a Bright Spot for Cameron
Cameron International’s (CAM) Subsea segment showed signs of recovery in fiscal 3Q15 after reporting falling revenue in three consecutive quarters.
How Is Flowserve Trading Compared to Peers?
Shares of Flowserve (FLS) currently trade at a PE (price-to-earnings) value of 17.04x. This isn’t cheap compared to FLS’s peers.
Behind Flowserve’s Surge despite Weak 1Q16 Earnings
Decent 1Q16 revenues sent Flowserve’s shares to a high of $49.52 in early trading. The stock closed at $48.81, 2.9% higher than its opening price of $47.42.
The VanEck Vectors Oil Services ETF (OIH) Sees Gains Last Week
OIH is a good proxy for playing energy prices because the fortunes of OFS companies tend to be closely linked to those of upstream, or exploration and production, companies.
Schlumberger and Cameron International: a Complementary Team
Schlumberger and Cameron are contemplating a merger because their drilling and production systems would be integrated from “pore to pipeline.”
Schlumberger’s Year-to-Date Returns Better Than Industry’s
Schlumberger (SLB) is set to announce its 3Q15 earnings after the market closes on October 15, 2015. Since January 1, SLB has slightly outperformed the OFS industry and some of its peers.
Omega Advisors buys stake in IntercontinentalExchange
Omega Advisors opened a new 1.36% position in Intercontinentalexchange (ICE), a leading operator of global markets and clearing houses, in the fourth quarter.
Basics of Cameron
Cameron (CAM) provides oil drilling equipment to the oil and gas industry via four business segments: Subsea, Surface, Drilling, and Valves & Measurement, or V&M.
More about Roper Technologies’ Industrial Technology Segment
Roper Technologies’ (ROP) Industrial Technology segment has long lead times and provides highly engineered custom-configured products.
Visa Inc Led the High-Grade Bond Market Last Week
Visa Inc (V) issued A1/A+ rated high-grade bonds worth $16.0 billion via six parts. This included $1.75 billion in 1.20% two-year notes at a spread of 30 bps.
US Onshore Rig Count Is down 54% since November 2014
During the week ending May 1, 2015, the US land-based, or onshore, rig count fell by 27—compared to the previous week’s count.
North America and Asia aid Schlumberger’s 4Q14 profit
In 4Q14, earnings before tax (or EBT) from Schlumberger’s international operations increased 3.8% to $1.98 billion from $1.91 billion in 4Q13.
US onshore rig count lowest since January 2010
In the last year, the US onshore rig count has fallen by 498. In contrast, the number of offshore rigs decreased by four.
Must-know: Why did JANA Partners open a position in Equinix?
Equinix Inc. (EQIX) accounted for a 4.33% position, according to JANA’s 3Q 2013 portfolio. The investor letter stated the fund started building its position late in the second quarter.
Schlumberger: 2Q15 Revenue Expectations Are Bearish
While Schlumberger can expect a 11% sequential revenue fall in 2Q15, Halliburton (HAL) is looking at a 17% quarter-over-quarter fall in 2Q15 revenue.
OIH Underperformed XOP and Commodity ETFs Last Week
The VanEck Vectors Oil Services ETF (OIH) lost ~1.2% in the week to June 12. OIH tracks an index of the top 25 US listed OFS companies.
US Onshore Rig Count Lost Momentum Last Week
During the week ended July 31, 2015, the US onshore rig count fell by five over the previous week’s count.
A Closer Look at Schlumberger’s 1Q15 Earnings
In this article, we will look at Schlumberger’s first-quarter earnings in more detail and discuss the factors that affected net income.
How Will Brexit Affect Flowserve?
Brent crude oil (USO) fell by nearly 5% to $48.4 per barrel on June 24, 2016. The fall happened after the results of the Brexit vote were announced.
Inside Helmerich & Payne’s Dividend and Dividend Yield
Helmerich & Payne increased its dividend from fiscal 2009 through fiscal 2015. In fiscal 2015, its DPS increased 13% YoY to $2.75.
Which OFS Companies Are Correlated to Crude Oil Prices?
OFS companies are impacted by rig counts and energy prices. In the past year, WTI crude oil prices fell ~12%. Crude oil prices have fallen since June 2014.
Taking a Closer Look at Baker Hughes’ Dividend and Dividend Yield
Baker Hughes increased its dividend from fiscal 2013 through fiscal 2015. In fiscal 2015, Baker Hughes’ dividend per share increased by 6.3% to $0.68 compared to $0.64 per share dividend in fiscal 2014.
Understanding Halliburton’s Valuation Compared to Peers
Halliburton’s net-debt-to-EBITDA multiple is higher than its peer group average. A higher multiple could indicate insufficient cash to repay debt.
Dril-Quip’s Historical Valuation
Dril-Quip’s historical valuation, expressed as EV-EBITDA multiple, was moving in a range from fiscal 2009 to fiscal 2013 before it fell in fiscal 2015.
What Are Analysts’ Recommendations for BHI, SLB, HAL, and CAM?
Approximately 78% of the analysts tracking Baker Hughes (BHI) recommended a “buy” or an equivalent rating. Approximately 19% recommended a “hold.”
Dividend Growth and Dividend Yields for SLB, HAL, and BHI
The higher DPS and lower share price caused Schlumberger’s dividend yield to rise from 1.87% as of December 31, 2014, to 2.79% as of February 29.
What Was the Income Growth for CAM, HAL, BHI, and SLB?
Cameron International is the only company in our group that reported positive fiscal 4Q15 net income. Its fiscal 4Q15 net income fell 51% to $125 million.
What Are Wall Street’s Ratings for Oilfield Services Companies?
Recently, there were no upgrades or downgrades issued by Wall Street analysts for the top five oilfield services companies.
Analyzing the 1-Year Returns for SLB, HAL, BHI, and CAM
Cameron International has done better than most of its peers in the stock market in the past year. Since February last year, its stock has returned 40%.
Why Utica Shale Natural Gas Production Rose 54% in January
The EIA estimates that Utica Shale natural gas production reached ~3.2 Bcf (billion cubic feet) per day in January 2016. That’s ~2.2% more than production in December 2015 and 54% more than production in January 2015.
Cameron International: Why All Segments Reported Lower Q4 Revenue
From fiscal 4Q14 to 4Q15, all of Cameron International’s (CAM) segments recorded lower revenues. The Valves and Measurement segment suffered the biggest revenue decline.
Natural Gas Production in Marcellus Shale Fell in December
The EIA estimated that the Marcellus Shale’s natural gas production totaled ~15.6 Bcf (billion cubic feet) per day in December 2015.
Do Cameron International’s Returns Shadow Crude Oil Prices?
Cameron International’s YTD returns have been higher than those of the industry ETF OIH.
Cameron International: What Does Management Think?
Cameron International’s (CAM) management thinks that its operating income margin in all segments will stay pressured in fiscal 4Q15.
Marcellus Shale’s November Natural Gas Production Fell Marginally
The EIA calculates that the average Marcellus Shale rig added production of 8.7 million cubic feet of natural gas in November 2015,
Schlumberger’s Year-to-Date Stock Price Is Steady, Beats Index
Schlumberger (SLB) has had a fair run in the stock market so far in 2015. On November 20, 2015, SLB was trading at $77.15, which was 8% lower than its price at the beginning of the year.
SPY Dipped on Yellen’s Hawkish Policy Comments on November 4
The stock market’s two-day rally stalled on November 4 after Janet Yellen, the Federal Reserve chair, commented about a possible rate hike in December 2015.
US Onshore Rig Count Dives 9% in 6 Weeks: What’s the Impact?
In the 12 months ended October 2, 2015, the US onshore rig count fell by 1,082, or 58%. The count decreased the most in Texas, where 60% of rigs shut down.
The Cameron-Schlumberger Material Adverse Effect Clause, Part 2
The Material Adverse Effect Clause in the Cameron-Schlumberger merger has several exceptions, including changes to the economy or financial market in general.
The Cameron-Schlumberger Material Adverse Effect Clause, Part 1
In the Cameron-Schlumberger OneSubsea joint venture, there’s a disproportionate effect clause addressing carve-outs that affect either company in a disproportionate way.
Basics of Schlumberger
Schlumberger (SLB) provides technology, project management, and information technology services to the oil and natural gas exploration and production industry.
US Onshore Rig Count Down 6% in 5 Weeks
During the week ended September 25, the US onshore rig count fell by six from the previous week’s count. In the last five weeks, 48, or 6%, of onshore rigs have been idled.
OneSubsea’s Importance in the Schlumberger-Cameron International Deal
OneSubsea’s importance can be best seen in its activity since the beginning of this year. But Cameron’s order backlog was down by 12% at the end of 2Q15.
The Cameron-Schlumberger Material Adverse Effect Clause, Part 3
The Material Adverse Effect Clause in the Cameron-Schlumberger merger has several exceptions, including weather-related events such as natural disasters.
The US Onshore Rig Count Falls 4% in 3 Weeks
During the week ended September 11, the US onshore rig count fell by 14 from the previous week’s count. Last week, there were 817 land-based rigs, including four inland water rigs.
Texas Led Last Week’s US Onshore Rig Count Crash
During the week ended September 4, the US onshore rig count fell by 16 from the previous week’s count. Last week, there were 831 land-based (or onshore) rigs.
Cameron International Could Lend Balance to Schlumberger’s Operating Performance
Schlumberger’s operating performance declined more than Cameron’s in 1Q15 and 2Q15—Cameron has managed to steady its ship better than Schlumberger has.
Rationale for Cameron’s Merger with Schlumberger
By merging with Cameron, Schlumberger believes it can create a company with a more attractive offering.
Financial Terms of the Schlumberger-Cameron Merger in Perspective
The financial terms of the Schlumberger-Cameron merger hold that Cameron shareholders would own ~10% of the entity. Cameron traded at a ~4.8% discount.
Schlumberger Proposes to Acquire Cameron International
On August 26, 2015, Schlumberger, the world’s largest OFS company by market capitalization, disclosed that it will acquire Cameron International.
Junk Firms Find the Availability of Cheap Debt Waning
Until now, energy drilling firms were offering bonds for postponing a cash deficit. These firms could witness greatly reduced access to debt capital markets.
Basics of the Schlumberger-Cameron Transaction
Cameron has a non-solicitation agreement with a fiduciary-out provision.
Schlumberger Buys Cameron, Will Offer Equipment and Services
Schlumberger (SLB) is buying Cameron (CAM) for a combination of cash and stock.
The Energy Sector: The Sole Gainer on August 31
The energy sector was the sole gainer on August 31. This move was largely triggered by the soaring oil prices and the fall in the US oil inventory.
US Economy Boosts XLE Subsectors in the Week Ended August 28
Energy ETFs such as the Energy Select Sector SPDR ETF (XLE) and the SPDR S&P Oil & Gas Exploration & Production ETF (XOP) posted weekly gains last week.
XLE Was Up, but USO Was the Winner in the Week Ended August 28
The United States Oil Fund (USO) was the biggest gainer in the week ended August 28. The fund rose by 12.47%.
Texas Defied Last Week’s US Onshore Rig Count Decrease
During the week ended August 28, 2015, the US onshore rig count fell by six from the previous week’s count.
US Onshore Rig Count Increases Are Widespread across the US
During the week ended August 21, 2015, the US onshore rig count increased by four from the previous week’s count.
US Offshore Rigs Rise for 2nd Week in a Row: Is the Worst Over?
Eight new projects are expected to start in the Gulf of Mexico in 2015. This could explain the sharp rise in offshore rigs we’ve seen over the last couple of weeks.
US Onshore Rig Count Increased, but Decreased in Some States
The US onshore rig count was on a continuous slide until the week ended May 22, having fallen for 25 straight weeks. The onshore count seems to have bottomed out since then.
Analyzing Halliburton’s Dividends, Cash Flows, and 2015 Outlook
On July 16, Halliburton (HAL) announced a $0.18 dividend per share payment for 2Q15, unchanged from 1Q15.
Halliburton’s 2Q15 Revenues and Earnings Beat Estimates
In this post, we’ll discuss Halliburton’s 2Q15 revenues and earnings versus analysts’ consensus estimates in depth.
Diving Deeper into Schlumberger’s 2Q15 Earnings
The deterioration in Schlumberger’s 2Q15 earnings resulted from decreased North American land activity.
Offshore Rigs Rise despite Weak Crude Oil Prices
In the week ending July 10, 2015, the US offshore rig count rose by two to 31, compared to the previous week.
Onshore Rigs Rise July 2 Week: Is Onshore Activity Rebounding?
During the week ending July 2, 2015, the US land-based, or onshore, rig count rose by two from the previous week’s count. Last week, there were 833 onshore rigs.
US Onshore Rigs Rose Last Week: Is It the Bottom?
During the week ending June 26, the US onshore rig count rose by one from the previous week’s count. Last week, there were 831 onshore rigs.
The Market Put a Premium on Large Caps with Strong Margin Growth
Large-cap energy stocks with above-average margin growth mostly outperformed peers last week.
US Onshore Rigs Play a Balancing Act across the US
During the week ending June 19, 2015, the US land-based, or onshore, rig count didn’t change from the previous week’s count—there were 830 land-based rigs.
A Breakdown of XLE’s Market Capitalization by Subsector
The Energy Select Sector SPDR Fund (XLE) is primarily composed of large-cap stocks.
Price-to-Earnings Ratio Trends and Trades in XLE Stocks
The rise in price-to-earnings ratios is indicative of investor preference towards storage during contango oil and gas markets.
Rising Dollar and Oversupply in June Set Long-Term Trends in Oil
Crude oil prices are feeling the pressure as the US dollar rises and expectations linger over whether oil production will stay high with OPEC. This is a reason to worry about oversupply.
Schlumberger and Halliburton: Strong OFS Stocks in the past 3 Years
Halliburton has been the best performer in the group since June 1, 2012. It returned 57.5%. During the same period, Schlumberger returned 53%.
How US Onshore Rigs Drove Rig Count Fall for 25th Straight Week
During the week ended May 15, 2015, the US land-based, or onshore, rig count fell by six from the previous week’s count.
US Onshore Rig Count down 52% since November 2014
During the week ending April 24, 2015, the US land-based or onshore rig count fell by 23—compared to the previous week’s count.
US Onshore Rig Count Down 49% since November 2014
Last week was the 20th straight week that the onshore rig count declined. Texas lost 29 rigs, while Oklahoma lost five rigs.
US Onshore Rig Count Down 51% since November 2014
In the week ended April 17, US onshore rig count fell by 34 compared to the previous week, falling to its lowest level since July 31, 2009.
Horizontal Rig Count Falls for 21st Consecutive Week
The horizontal rig count fell by 29 for the week ended April 17, 2015, from the previous week’s count. This represents the 21st straight week of decline.
US Onshore Rig Count Falls to November 2009 Level
During the week ending March 13, 2015, the US onshore rig count fell by 64 compared to the previous week’s count.
US onshore rig count lowest since December 2009
Falling crude oil prices have affected US onshore rigs the most. Some of the unconventional resource shales have higher exploration and production costs.
Texas leads the US onshore rig count to a 5-year low
During the week ending February 13, 2015, the US onshore rig count fell by 100 compared to the previous week’s count.
How energy prices can hurt Halliburton
Since the last quarter of 2014, the crude oil price fall has led to spending cuts by some major energy upstream players. Energy prices can hurt Halliburton.
Which segments and regions have been driving Halliburton?
In its segments and regions, HAL earned ~38% of its revenues in 4Q14 from its Drilling and Evaluation segment and 62% from Completion and Production.
Viking Global’s Wayfair ownership falls after W’s share count rises
In November 2014, Wayfair declared its quarterly results and reported revenues of $336.2 million, an increase of 41.2% year-over-year and above what analysts had expected.
Mohawk Industries acquires IVC Group
Mohawk Industries (MHK) entered into a definitive agreement earlier this month to acquire IVC Group, which is a leading manufacturer of sheet vinyl, luxury vinyl tile (or LVT), and laminate.
Mohawk Industries drives growth by reducing energy consumption
In order to increase its bottom line and decrease its carbon footprint, Mohawk is focusing on optimizing overall energy consumption.
Viking Global Investors reduces position in Mohawk Industries
Mohawk Industries produces floor covering products for residential and commercial applications in North America and Europe.
Onshore US rig count sees precipitous slide
In the last year, the onshore US rig count has fallen by 142. In contrast, the number of offshore rigs decreased by two.
Viking Global Investors reduces its position in Illumina
Viking Global Investors has reduced its stake in Illumina by 461,100 shares. The reduction is marginal, which suggests Viking Global is positive in regards to the company’s performance.
US onshore rig count dips 6% below its 2-year high
During the week ending January 2, 2015, the US onshore rig count fell by 26 compared to the previous week’s count.
Must-know: Financial terms of the Halliburton-Baker Hughes merger
Halliburton estimates the combined company will increase shareholders’ value through dividends and share repurchases.
Viking Global Investors sells position in Constellation Brands
Viking Global Investors sold its position in Constellation Brands (CAM) in 3Q14. The position accounted for 1.27% of Viking’s 2Q portfolio.
Highlights of Viking Global Investors’ 3Q14 13F
Viking Global Investors is a global investment firm managing more than $20 billion in capital across long-short equity and long-only strategies.
Why National Oilwell Varco’s relative valuation is important
The operating margin is a company’s ability to generate profits from operations. NOV’s operating margin shows the most encouraging sign yet.
Why cash flow from financing activities is an intermediary
CFF is a key “intermediary” between a company and its sources of capital. It shows cash returned to shareholders through share repurchases and dividends.
Why cash flow from operations indicates profitability
A company’s cash flow from operations is the cash it earns from its business operations—the sale of products and services.
Cooperman’s Omega Advisors establishes a new position in SunEdison
Omega Advisors initiated a new 1.50% position in SunEdison Inc (SUNE). SunEdison is a major developer and seller of photovoltaic energy solutions.
Omega Advisors opens a position in Gaming and Leisure Properties
Gaming and Leisure Properties (GLPI) is a new position initiated by Omega Advisors last quarter. Gaming and Leisure Properties is the first gaming-focused REIT, which was spun off from Penn National Gaming (PENN).