Oil Service Company Halliburton Is Owned By Its Shareholders
Biden Might Change the Tide for Halliburton, Stock Looks Like a Buy
What Are Analyst Recommendations for Apache?
Wall Street analysts gave mixed recommendations after Apache’s quarterly results. Apache shares fell 5% on November 6, 2015, after the earnings release.
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.
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%.
Why the US Economy Stalled in 1Q15
The US economy stalled in 2014 for several reasons, including seasonality, weather, strength of the dollar, the West Coast port strike, and the oil price slump.
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.
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.
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.
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.
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.
Returns for OFS Stocks with High and Low Implied Volatility
Schlumberger had the lowest implied volatility figures among all of the OFS companies on May 31, 2016. It has returned 9.4% on a YTD basis.
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.
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.
Could the Apollo-ADT Transaction Get Competitive?
The $42 purchase price was a high premium of over 50% to where ADT (ADT) was trading on February 12, 2016, the Friday before the deal was announced.
Parsing the Heartland–Global Payments MAE Clause, Part 3
Let’s continue our discussion on the Heartland–Global Payments merger. The MAE clause is one of the first things that arbitrageurs look at in a merger agreement.
How Analysts View NOV and BHGE in August
Of the 27 analysts surveyed by Reuters covering National Oilwell Varco (NOV), one analyst rates the stock as “strong buy,” three analysts rate it as a “buy,” and 21 analysts rate it as a “hold.”
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.
Halliburton Beats Q3 Estimates but Falls on Lower Q4 Guidance
Halliburton (HAL) reported its third-quarter earnings results on October 22. The company reported EPS of $0.50.
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%.
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: Why oil rig counts have risen 2% in 2014 so far
U.S. land rig counts totaled 1,696 on February 21, 2014, compared to 1,692 the week prior. Over the medium term, rig counts have been relatively stable.
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.”
Schlumberger: Do Analysts Expect the Stock to Rise?
For Schlumberger, seven analysts rated it as a “strong buy,” 15 rated it as a “buy,” 13 rated it as a “hold,” and one rated it as a “sell.”
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.
Natural Gas Prices and Gas Rigs Move in the Same Direction
On Friday, June 5, Baker Hughes released the weekly natural gas rig count report. As expected, natural gas rigs fell by three to 222 for the week ending June 5.
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.
What Kind of Return Will the IGATE–Capgemini Spread Yield?
To turn this into a reasonable return, you’re looking at a July close. This isn’t outside the realm of possibility, but it could be tough, especially since there’s a shareholder vote.
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.
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.
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.
Appaloosa Management raises its stake in American Airlines Group
Appaloosa Management enhanced its position in American Airlines Group Inc. (AAL) last quarter that now accounts for 3.48% of Appaloosa’s total 1Q portfolio.
The reason behind the 6% increase in the US rig counts this year
The U.S. rig counts dropped last week, but are still up significantly year-to-date and have increased by 103, or 6%.
Is the Oil Rig Count Signaling Another Fall in Oil Prices?
On July 16, US crude oil August futures fell 4.2% and settled at $68.06 per barrel—their lowest closing level since June 21.
Why should investors pay attention to oil and gas rig counts?
Many parties in the energy industry and investing community monitor oil and gas rig counts as one measure of drilling activity.
Seadrill’s Volatility Rose the Most among These OFS Stocks
On April 10, 2017, Seadrill had the highest implied volatility among the OFS (oilfield equipment and services) constituents of the VanEck Vectors Oil Services ETF (OIH).
Big Forces Behind India’s Future Monetary Policy
Rate cut transmissions by commercial banks, inflation, and monetary policy actions by the Fed will have the largest influence on India’s future.
National Oilwell Varco Had Strong Earnings Growth
Increased global drilling activity and focused cost reduction efforts contributed to National Oilwell Varco’s earnings growth in 2018.
Returns of Oilfield Services Stocks with High Implied Volatility
Tidewater (TDW) has the highest implied volatility among all of the OFS companies. The stock has fallen 65.1% on a YTD (year-to-date) basis.
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.
US Crude Oil Rig Count Fell for 4th Straight Week
Last week, Baker Hughes reported that the US crude oil rig count fell by one rig to 515 rigs for the week ending January 15, 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.
Could the Zulily Transaction Get Competitive?
There’s a tender and support agreement between the founding members and Liberty Interactive. These Zulily shareholders have agreed to the Liberty Interactive tender offer.
US Crude Oil Rigs Are near a 4-Week Low
Baker Hughes reported that US crude oil rigs declined by seven to 797 on March 23–29, 2018. The rigs are near a four-week low.
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.
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.
Baker Hughes basics
Baker Hughes (BHI) is a leading supplier of oilfield services, products, technology, and systems to the worldwide oil and natural gas industry.
Which Oilfield Service Major Achieved Earnings Progress in 2017?
Halliburton (HAL) recorded a net loss of ~$463 million in 2017—a sharp improvement compared to a net loss of $5.73 billion in 2016.
Why Weatherford’s 3Q17 Earnings Beat Estimates
Compared to 2Q17, Weatherford International’s 3Q17 revenues rose 7.1%.
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.
Analyzing the 1-Year Prices of Oilfield Services Companies
In this series, we’ll discuss Wall Street analysts’ expectations for some prominent oilfield services companies’ operating earnings in 2017.
Why Halliburton’s Valuation Looks Attractive
Halliburton (HAL) is trading at a forward EV-to-EBITDA multiple of ~8.6x—lower than Schlumberger and Baker Hughes’s forward EV-to-EBITDA multiples.
Schlumberger: Analysts Cut the Target Price
On January 10, Jefferies cut its target price for Schlumberger from $54 to $47. Morgan Stanley cut its target price for the stock from $50 to $45.
The must-know relationship between oil rigs and crude prices
The previous parts of this series (parts 8 and 9) explained the counterintuitive relationship between low natural gas prices, falling rigs, and rising natural gas production. Oil rigs have a simpler relationship with crude oil prices and oil production.
Is the Time Warner Cable–Charter Deal a Go?
Charter is a $20 billion market cap company. Time Warner Cable is a $51 billion company. Mergers in which a small company buys a larger company are invariably dicier.
SLB, HAL, BHI, or NOV: Which Has the Highest Implied Volatility?
On May 2, 2017, National Oilwell Varco (NOV) had an implied volatility of 28.3%. After it announced its earnings on April 26, 2017, NOV’s implied volatility fell.
Why Halliburton’s Free Cash Flow Is Remarkable
Halliburton’s 3Q16 FCF improved significantly over the previous year. Its CFO rose significantly due to increased rig utilization in North America.
Why Halliburton’s Drilling and Evaluation segment did poorly in 4Q14
In 4Q14, revenues in the Drilling and Evaluation segment increased 6.5% to $3.29 billion from $3.09 billion recorded in 4Q13.
Chart of the Week: National Oilwell Varco’s Growth Drivers
From 2Q16 to 2Q17, revenue for National Oilwell Varco’s (NOV) Completion & Production Solutions segment rose 21.0%.
Must-know: Why the US total rig count increased last week
U.S. total rig count increases by six The U.S. total drilling rig count increased by six rigs, from 1,883 to 1,889, during the week ending August 1 according to Baker Hughes, which publishes rig counts every week. The number of oil rigs increased by 11, while the number of natural gas rigs decreased by five. […]
The US offshore rig count increased last week
Last week, the offshore rig count increased by two to 60, which is close to its 4-year high of 66 that it reached on August 29, 2014.
Crude Oil Rigs Could Fall More as the Bloodbath Continues
Baker Hughes will release the weekly crude oil rig count report on July 24, 2015. The crude oil rig count fell by seven to 638 for the week ending July 17.
What Do Analysts Expect from Schlumberger’s 1Q17 Earnings?
In 1Q17, analysts expect Schlumberger (SLB) to post adjusted earnings per share (or EPS) of $0.26, a fall of 3% compared to its 4Q16 adjusted EPS of $0.27.
Must-know: Halliburton’s 3Q14 earnings beat estimates
Between 3Q12 and 3Q14, HAL’s adjusted earnings per share (or EPS) has increased 78%. HAL has drawn the attention of Wall Street analysts to review the results and give their recommendations and target price.
Analyzing Superior Energy Services’ 3Q17 Segment Performance
In the first nine months of 2017, SPN’s revenues increased 26.0% over the first nine months of 2016.
Soaring high: Appaloosa initiates a position in American Airlines
Appaloosa Management’s top new buy last quarter was American Airlines Group (AAL), with a 2.22% position in the hedge fund’s U.S. long portfolio.
What PTEN’s Analysts Expect for 2Q17
For 2Q17, analysts expect Patterson-UTI Energy (PTEN) to report an adjusted loss per share of $0.30. This would mean a cut in its losses from 1Q17.
Relative Valuation: Comparing Schlumberger and Halliburton
Halliburton’s EV (or enterprise value), when scaled by the TTM (trailing 12-month) adjusted EBITDA, is the lowest in our group.
Is Halliburton’s Historical Valuation Justified?
Halliburton’s forward EV-to-EBITDA multiple is lower compared to 1Q17. Analysts expect higher adjusted EBITDA in the next four quarters.
Best Oilfield Service Stocks for 4Q16: Earnings Growth
Wall Street analysts expect Flotek Industries (FTK) to register positive EBITDA (or earnings before interest, tax, depreciation & amortization) in 4Q16.
How Halliburton Beat 2Q16 Estimates Despite Revenue Declines
Halliburton (HAL) released its fiscal 2Q16 financial results on July 20, 2016. It recorded total revenues of $3.4 billion, a decline of 43% from $5.9 billion in fiscal 2Q15.
Schlumberger’s Q1 Earnings Are Expected to Fall 21%
Schlumberger (SLB) is scheduled to report its first-quarter earnings on April 18. Analysts’ consensus EPS estimate is $0.3 per share.
What Wall Street Analysts Expect from PTEN’s 3Q17 Earnings
In 3Q17, analysts expect an $0.18 adjusted loss per share for Patterson-UTI Energy (PTEN), which means Wall Street analysts expect PTEN to cut its losses from the 2Q17 adjusted loss of $0.21 per share.
US Crude Oil Production: Biggest Threat for Oil Prices
Active WTI crude oil futures have declined ~10.4% since May 21. The Energy Select Sector SPDR ETF (XLE) has dropped ~4% since May 21.
Horizontal rig count tapers off after attaining historic high
Horizontal rig counts had been setting and breaking new records before last week’s fall, which marked the third decrease in the past 16 weeks.
Schlumberger’s Stock Price Is Bearish
Since January, Schlumberger’s stock price has fallen. It reached a one-year low in August. Schlumberger’s revenue has been steady in the past five quarters.
Halliburton’s Share Price Drops after Fiscal 4Q15 Earnings Release
Halliburton’s share price reacted negatively after its fiscal 4Q15 earnings release, falling by 3.9% to $29.28 on the day compared to the day before.
Analyzing Halliburton’s Q4 Earnings
Halliburton reported its fourth-quarter results on January 22. The company’s EPS fell to $0.41 from $0.53 per share in the fourth quarter of 2017.
Why Nabors Industries’ 3Q17 Earnings Missed Estimates
Nabors Industries (NBR) released its 3Q17 financial results on October 24, 2017. It reported operating revenues of ~$662.0 million in 3Q17, a 27.0% rise from ~$518.0 million in 3Q16.
Wall Street’s Forecasts for Halliburton before Its 3Q15 Earnings
Wall Street’s forecasts for Halliburton include ~76% of analysts rating the company as a “buy” or some equivalent.
Helmerich & Payne’s Q1 Results and 2019 Outlook
Helmerich & Payne reported its first-quarter results on January 29. The company reported an EPS of $0.17 for the quarter ending December 31.
Why Did Keane Group Decide to Go Public Now?
From 2Q16 to 3Q16, some of the major US upstream and integrated companies’ falling capex moderated, as crude oil prices started to recover in 2016.
How the Market Reacted to DOJ Approval of GE-BHI Merger
On June 13, BHI’s stock price rose 2% over its previous day’s close. GE’s stock price reaction was lukewarm with a fall 2% on June 13.
Correlation between Crude Oil and Halliburton on September 5
The correlation coefficient between the price of crude oil and Halliburton (HAL) stock from September 5, 2016, to September 5, 2017, is 0.65.
A quick snapshot of Schlumberger
Schlumberger, a Houston-based energy company, provides technology, integrated project management, and information solutions to oil and gas exploration and production companies.
How Did PTEN and Seventy Seven Energy’s Stock Prices Move?
In the past year, Patterson-UTI Energy’s stock price nearly doubled. Since August 19, Seventy Seven’s stock price rose 74%.
BHGE and NOV: A Look at Relative Valuations
In this article, we’ll compare relative valuation multiples for Baker Hughes (BHGE) and National Oilwell Varco (NOV).
What’s Baker Hughes’s Current Valuation versus Peers?
Baker Hughes, a GE Company (BHGE), is the largest company by market capitalization in our select set of major oilfield services and equipment companies.
How Schlumberger Stock Has Performed in the Past Year
Schlumberger’s (SLB) one-year stock price was down 14% as of June 23, 2017.
Wall Street’s Targets for SLB, HAL, KEG, NBR, and CLB
In this article, we’ll look at Wall Street’s targets for the OFS stocks that had the highest net debt-to-equity ratios in the first quarter.
Finding Trends in Oilfield Services Companies’ Net Incomes
Many oilfield equipment and services (or OFS) companies witnessed stupendous rises in their net incomes from 2009 to 2014.
Is Fairmount Santrol’s Stock Bullish?
Fairmount Santrol Holdings provides sand-based proppant solutions to the energy upstream sector. It had a strong run in the stock market in 2016.
A Look at SLB and HAL’s Net Debt after 4Q17
In this series, we’ll compare Schlumberger (SLB) and Halliburton (HAL), two of the largest oilfield equipment and services (or OFS) companies.
Helmerick & Payne: Analysts See 22% Upside Potential
The mean target price for Helmerich & Payne is $70.7, which implies an upside potential of ~22% from its current price.
How Flotek Could React to Upstream Operators’ Capex and the Rig Count
From 1Q16 to 1Q17, Flotek’s EBITDA margin shrank to 3.3% from 4.1%. FTK’s EBITDA margin has been 1.7%, on average, for the past five quarters.
Must-know: An overview of Baker Hughes
Baker Hughes Inc. (BHI) is based in Texas. It’s an energy company that operates in the oil and gas equipment and services industry. As of December 31, 2013, BHI operated in more than 80 countries.
Can Nabors Industries’ Strategies Improve Returns in 2017?
In the past year, as of June 19, 2017, Nabors Industries (NBR) has fallen 20.0%. It underperformed the VanEck Vectors Oil Services ETF (OIH), which tracks 25 OFS companies.