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.
US Crude Oil Rigs Are Steady at March 2015 High
Baker Hughes reported that US crude oil rigs were flat at 863 on July 6–13. The rigs have risen by 98 or ~12.8% year-over-year.
How the Market Reacted to the DOJ’s Lawsuit on the HAL-BHI Merger
On April 6, 2016, the U.S. Department of Justice (or DOJ) filed an antitrust lawsuit that proposed blocking the pending Baker Hughes–Halliburton merger.
This Oilfield Company Has the Highest Net Debt-To-Equity Ratio
Since 2013, Dril-Quip’s (DRQ) net debt has been negative, as the company has had no debt and positive cash and equivalents.
Wall Street’s Take on Halliburton: Most Analysts Rate It a ‘Buy’
Approximately 78% of Wall Street analysts tracking Halliburton rate it a “buy” or some equivalent.
The Top 5 Oilfield Companies by Net Debt-To-Equity Ratio
In this series, we’ll analyze the top five OFS (oilfield equipment and service) companies by net debt-to-equity ratio in fiscal 2017.
Analysts’ Recommendations for RES, DRQ, WFT, PTEN, and FTK
Approximately 79% of the Wall Street analysts tracking Patterson-UTI Energy (PTEN) have recommended a “buy” or some equivalent as of May 15.
Key US Shale Crude Oil Production: Projections for January 2016
According to its report on December 7, 2015, the EIA expects crude oil production to fall at five key shales by January 2016.
Is Dril-Quip’s Share Price Rally Over?
Dril-Quip’s quarterly revenues and earnings have deteriorated in the past four quarters due to energy price depression and weak demand for OFS products and services.
What Is Driving Noble’s Revenues and Earnings?
In the year preceding fiscal 3Q15, Noble Corporation’s revenue was steady. From fiscal 3Q14 to fiscal 3Q15, Noble’s revenues increased 53%.
What Analysts Recommend for TechnipFMC after Q2 Earnings
As of July 25, the day TechnipFMC released its Q2 2018 earnings, approximately 67% of Wall Street analysts tracking TechnipFMC rated it a “buy” or some equivalent.
Wall Street’s Forecasts for WFT before Q2 2018 Earnings
From April 17 to July 17, the percentage of analysts recommending a “buy” or some equivalent for WFT has increased from 69.0% to 73.0%.
Will Weatherford International’s EBITDA Margin Change in Q2 2018?
From Q1 2017 to Q1 2018, Weatherford International’s (WFT) EBITDA margin increased from 6.2% to 10.6%.
Oilfield Services Gainers This Week: AROC, OII, DRQ, TTI, CRR
From June 18–20, Archrock (AROC) was at the top of the list of gainers in the oilfield services group.
Analysts’ Views on the Lowest Net Debt-To-Equity Oilfield Stocks
Of the analysts tracking Baker Hughes, a GE company (BHGE), on April 10, 2018, ~47% recommended “buy” or some equivalent and ~53% recommended “hold.”
A Look at the Top Oilfield Services Gainers So Far This Week
In the week starting March 5, 2018, Superior Energy Services (SPN) is the top gainer in the oilfield services group.
Oilfield Services Gainers: FTK, FTI, DRQ, RES, and NOV
In the week starting November 27, 2017, Flotek Industries (FTK) is at the top of the list of gainers from the oilfield services group.
Who Were the Biggest Oilfield Services Gainers Last Week?
In the week ending September 8, 2017, Carbo Ceramics (CRR) was at the top of the list of gainers from the oilfield services group.
RPC Beat 2Q16 Earnings Estimates: Was It the Robust Service?
RPC (RES) released its fiscal 2Q16 financial results on July 27, 2016. Robust service intensity helped earnings exceed analysts’ estimates.
The Word on the Street: Analyst Recommendations for Mid-Cap OFS Stocks
Approximately 69% of analysts tracking Weatherford International recommend a “buy,” while ~23% recommend a “hold.” The rest recommend a “sell.”
Inside the Net Debt-to-EBITDAs of WFT, RES, DRQ, and CLB in 1Q16
In 1Q16, Dril-Quip’s (DRQ) net debt-to-EBITDA multiple stood at -1.6x, which shows a decline from its multiple of -1.16x in 1Q15.
Understanding Mid-Cap OFS Companies’ Correlations with Crude Oil
The correlation coefficient between Weatherford International’s stock price and crude from June 2015 to now is the lowest among our four OFS companies.
A Comparative Valuation of Four Representative OFS Mid-Caps in 2Q16
Dril-Quip’s EV, when scaled by TTM adjusted EBITDA is the lowest in our group of four OFS companies after 1Q16.
Did RPC, Inc. Lose Revenue More than OFS Peers in 1Q16?
All four of our select OFS companies—Weatherford International, Core Laboratories, Dril-Quip, and RPC, Inc. (RES)—recorded YoY revenue declines in 1Q16.
Could Patterson-UTI Energy Violate Debt Covenants in 2Q16?
As of March 31, 2016, Patterson-UTI Energy had a $65 million debt under a senior unsecured term loan.
Why C&J Energy Services Had a Brush with Bankruptcy
C&J Energy Services (CJES) provides completion and production services for upstream energy producers.
Analyzing Dril-Quip’s Free Cash Flow and Backlog
In 12 out of the past 13 quarters until 1Q16, Dril-Quip generated positive free cash flow.
Why Did Forum Energy Technologies’ 1Q16 Earnings Miss Estimates?
Forum Energy Technologies (FET) released its 1Q16 financial results on April 28. The company recorded total revenues of ~$159.4 million in 1Q16, down ~54% from $348.1 million recorded in 1Q15.
Why Did FMC Technologies’ 1Q16 Earnings Miss Estimates?
FMC Technologies released its 1Q16 results on April 26, 2016. It recorded total revenue of ~$1.2 billion, a fall of ~29% from $1.7 billion in 1Q15.
Explaining National Oilwell Varco’s Historical Valuation
National Oilwell Varco’s price-to-earnings multiple was range-bound between 2009 and 2015. In 2015, NOV’s adjusted earnings fell 53% compared to 2014.
Why Is National Oilwell Varco’s Share Price Staying Weak?
National Oilwell Varco, which designs, manufactures, and sells equipment and components used in upstream energy production, has had a weak run recently.
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.
Dril-Quip’s Free Cash Flow and Backlog
In 11 of the past 12 quarters until fiscal 4Q15, Dril-Quip generated positive free cash flow. Lower CFO combined with similar capex led to FCF decreasing 40% in the past one year.
What Can We Assume from Forum Energy Technologies’ Indebtedness?
Forum Energy’s net debt-to-TTM-EBITDA ratio decreased gradually from fiscal 3Q13 to F3Q14. During this period, total debt decreased 21%, and cash and marketable securities more than doubled.
Which US Shales Are Expected to See Crude Oil Production Drop?
The EIA expects aggregate crude oil production at the seven key shales to fall 3.3% by March 2016 compared to January 2016 levels.
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.
EIA Projections for December 2015: Key US Shale Crude Oil Production
The EIA expects crude oil production to fall at five key shales by December, whereas it forecasts a rise at two other key shales.
Key US Shales to Witness Lower Crude Oil Production by November
The EIA expects crude oil production to slow down at most of the key US shales by November. It expects production to fall at five key shales and rise at two others in October.
Key Shales to Witness Lower Crude Oil Production by October
According to its Drilling Productivity Report released on September 14, 2015, the EIA expects the crude oil production to fall at five key shales in October.
Key Shale Crude Oil Production to Fall in August, Says EIA
According to its Drilling Productivity Report released on July 13, 2015, the EIA expects key shale crude oil production to decrease at four key shales in August and increase at three others.