iShares US Energy

Oil prices tumbled on Monday after the Chinese government announced it would impose tariffs on US imported goods worth $60 billion starting June 1.

On July 30, a Reuters survey showed that OPEC’s crude oil production increased by 70,000 bpd (barrels per day) to 32.64 MMbpd in July.

The US offshore rig count in Week 30, which ended July 27, was 16, one less than the previous week and eight less YoY (year-over-year).

US gasoline production decreased 0.4% to 10.3 MMbpd (million barrels per day) on July 13–20. The production decreased 1.3% from a year ago.

Analysts’ consensus rating for Noble is 3.2 on a scale of 1 (“strong buy”) to 5 (“strong sell”), meaning “hold.”

WTI crude oil prices fell 8.2% on June 29–July 17. August WTI oil futures contracts rose 0.03% to $68.08 per barrel on July 17.

In this part of our series, we’ll compare Wall Street analysts’ consensus ratings for the offshore drilling companies we’ve been analyzing.

Dividend yield indicates how much a company pays in dividends relative to its share price. It’s calculated as the dollar value of dividends as a percentage of the stock price.

Along with a company’s long-term solvency, it’s important to look at its liquidity position.

US gasoline futures rose 0.6% to $2.13 per gallon on July 5 due to the larger-than-expected drop in gasoline inventories.

Reuters estimates that Saudi Arabia’s crude oil production increased by 700,000 bpd to 10,700,000 bpd in June—compared to the previous month.

On July 2, a Reuters survey showed that OPEC’s crude oil production increased by 320,000 bpd (barrels per day) to 32,320,000 bpd in June.

The US offshore rig count in Week 24, which ended June 15, was 20, the same as the previous week.

Saudi Arabia’s crude oil production increased by 60,000 bpd to 10,120,000 bpd in May—compared to the previous month.

On June 11, US crude oil July futures rose 0.5% and settled at $66.10 per barrel.

On June 4, US crude oil July futures fell 1.6% and settled at $64.75 per barrel—the lowest closing level for active US crude oil futures since April 9.

Last week, the US offshore rig count was at 19, the same as it was in the previous week.

On May 25, ~75.0% of the Wall Street analysts tracking Schlumberger rated it as a “buy” or some equivalent.

RDC’s analyst recommendations Analysts’ consensus rating for Rowan (RDC) is 2.6, which means a “hold.” Peers Transocean (RIG), Diamond Offshore (DO), Noble (NE), and Ensco (ESV) also have “hold” ratings. Of the 31 analysts covering Rowan (RDC), 39% recommend “buy” or some equivalent, 55% recommend “hold,” and 6% recommend “sell.” Among the top offshore drilling stocks […]

In this series, we’ll discuss analysts’ ratings and recommendations for offshore drillers.

Schlumberger’s production group witnessed the highest revenue growth (~35%) in the first quarter compared to Q1 2017, followed by the Drilling (7.1%) and Cameron (5%) groups.

In the week ending April 20, US crude oil inventories rose by ~2.17 MMbbls (million barrels) to ~429.7 MMbbls.

PointLogic estimates that US dry natural gas production increased 0.6% to 80.1 Bcf (billion cubic feet) per day on April 19–25.

Of the 32 analysts covering Ensco (ESV), 44% recommend a “buy” or equivalent for the stock.

From 1Q17 to 1Q18, Baker Hughes’s Oilfield Services segment saw 12% higher revenues, followed by the Digital Solutions segment.

In the week ending April 13, US crude oil inventories fell by 1.1 MMbbls (million barrels) to ~427.6 MMbbls.

PointLogic, a market intelligence company, estimates that US dry natural gas production fell 0.6% to 79.6 Bcf per day on April 12–18, 2018.

As of January 16, 2018, 89% of Wall Street analysts tracking Halliburton rated it a “buy” or some equivalent.

PointLogic, a market intelligence company, estimates that US dry natural gas production rose 0.3% to 80.1 Bcf per day on April 5-11, 2018.

In the week ending March 30, 2018, US crude oil inventories fell by 4.6 MMbbls (million barrels) to ~425.3 MMbbls.

The EIA reported that US dry natural gas production declined 1.1% to 79.9 Bcf (billion cubic feet) per day in January 2018—compared to December 2017.

In the week ending March 23, 2018, US crude oil inventories rose by 1.64 MMbbls (million barrels) to ~429.94 MMbbls.

A larger decline in Cushing inventories could have a positive impact on oil prices. US crude oil futures rose 1.8% to $62.41 per barrel on March 16, 2018.

Continuing with the biggest movers in the energy sector, we’ll now look at the top gainers from the integrated energy sector in the US for the week that began on March 12.

According to PointLogic, US dry natural gas production increased 0.1% to 78.4 Bcf (billion cubic feet) per day on March 8–14, 2018.

Hedge funds’ net long positions on WTI crude oil futures and options contracts decreased 4.3% to 446,023 on February 27–March 6, 2018.

Analysts estimate that Cushing inventories could have declined on March 2–9. The EIA is scheduled to release its crude oil inventories report on March 14.

US dry natural gas production decreased 0.5% to 78.1 Bcf (billion cubic feet) per day on March 1–7, 2018, according to PointLogic.

US natural gas inventories fell by 57 Bcf (billion cubic feet) to 1,625 Bcf on February 23–March 2, 2018, according to the EIA.

Monthly US natural gas production  On February 28, 2018, the EIA (U.S. Energy Information Administration) released its monthly natural gas production data. It reported that US dry natural gas production rose 4.5% to a record high of 80.9 Bcf per day between November and December 2017. Production rose 7.3 Bcf (10%) per day year-over-year. US natural gas prices have fallen ~30% […]

Schlumberger (SLB) thinks that the crude oil market sentiment has been a positive catalyst for oilfield equipment and services companies.

Hedge funds’ net long positions in US crude oil futures and options contracts declined by 22,151 or 4.6% to 450,641 on February 6–13, 2018.

According to the EIA, Iran’s crude oil production increased by 10,000 bpd to 3.8 MMbpd in January 2018—compared to December 2017.

Approximately 66% of the Wall Street analysts tracking Nabors Industries rated it as a “buy” or some equivalent.

In December 2017, no drilling permits were issued in the Gulf of Mexico’s shallow waters. In November, one drilling permit was issued.

In this article, we’ll take a look at Wall Street analysts’ forecasts for National Oilwell Varco (NOV) shares following its 4Q17 earnings release.

Short interest in Schlumberger (SLB) as a percentage of its float was 2.0% as of January 31, 2018, compared to 1.2% as of January 31, 2017.

A Reuters survey showed that OPEC’s crude oil production increased by 100,000 bpd (barrels per day) to 32.4 MMbpd (million barrels per day) in January 2018.

China’s crude oil imports increased 10% to 8.4 MMbpd (million barrels per day) in 2017 from 2016, according to China’s General Administration of Customs.

Of the 33 analysts covering Rowan Companies (RDC), 30% recommend a “buy” or some equivalent for the stock, while 61% recommend a “hold.”

Of the 34 analysts covering Transocean, 44% recommend a “buy” or some equivalent for the stock, while 32% recommend a “hold.”

According to the EIA, global crude oil supply outages increased by 208,000 bpd or 14% to 1,738,000 bpd in December 2017—compared to November 2017.

From 4Q16 to 4Q17, the Oilfield Services segment of Baker Hughes, a GE company (BHGE), saw a 10% rise in revenue.

On January 18, 2018, Transocean announced that it concluded its shareholder meeting. Shareholders approved the acquisition of Songa Offshore.

On January 21, the NOC (National Oil Corporation) of Libya said that it would restart the Wintershall AG’s Sara oilfield. NOC is a state-owned oil company.

A larger-than-expected withdrawal in natural gas inventories compared with the historical averages could support natural gas (UNG) prices this week.

In fiscal 2017, Schlumberger’s (SLB) revenues increased 9% to $30.4 billion—compared to the same period in fiscal 2016.

The EIA reported that US crude oil inventories declined by 6.9 MMbbls (million barrels) or 1.6% to 412.7 MMbbls on January 5–12, 2018.

On January 16, Weatherford International’s (WFT) implied volatility (or IV) was ~64%. Its 3Q17 earnings were announced on November 1, 2017. Since then, its implied volatility has increased from 54% to the current level.

In 3Q17, Weatherford International’s (WFT) revenue share from North America was 39.7%, which compares favorably with the 37.6% revenue share from North America in 2Q17.

Global crude oil supply outages increased by 208,000 bpd (barrels per day) to 1,738,000 bpd in December 2017—compared to the previous month.

The US Dollar Index (UUP) fell 0.64% to 90.39 on January 16, 2018—the lowest level since December 2014.

Noble (NE) was the third-best performer among top offshore drillers in terms of market returns in 2017.

Of the 32 analysts covering Ensco, 47% recommend a “buy” or some equivalent for ESV stock.

Analysts expect that Cushing crude oil inventories could have declined on January 5–12, 2018. A fall in Cushing inventories is bullish for oil prices.

US natural gas consumption fell 14.4% to 102.6 Bcf (billion cubic feet) per day on January 4–10, 2018, according to PointLogic.

The US Dollar Index fell ~9.8% in 2017. The dollar fell partly due to the improving economy outside the US. It was the worst annual drop since 2003.

A Bloomberg survey estimated that the crude oil inventories at Cushing could have fallen by 1.5 MMbbls between December 29, 2017, and January 5, 2018.

According to data compiled by Reuters, on January 2, 2018, 73% of the Wall Street analysts tracking Schlumberger rated it as a “buy” or some equivalent.

Weatherford International’s (WFT) stock price has fallen 16.0% through December 29, 2017, in the past year.

According to the EIA, US crude oil production increased by 28,000 bpd (barrels per day) to 9,782,000 bpd on December 22–29, 2017.

Weatherford International’s (WFT) EV (enterprise value) when scaled by a trailing 12-month adjusted EBITDA is close to the peer average in our group.

In 3Q17, Weatherford International’s (WFT) adjusted earnings were negative. So its PE (price-to-earnings) multiple wasn’t meaningful that quarter.

In this article, we’ll take a look at RBC Capital’s revised target prices for three offshore drillers (IYE).

A larger-than-expected withdrawal in US natural gas inventories compared to historical averages would help natural gas prices this week.

US gasoline inventories rose by 0.5 MMbbls (million barrels) or 0.3% to 228.3 MMbbls from December 15 to 22, 2017, per the EIA.

In November 2017, one drilling permit was issued in the shallow waters of the Gulf of Mexico.

The US offshore rig count stood at 19 in the week ended December 22, 2017.

For the week ending December 15, 2017, US crude oil inventories fell for the fifth straight week. So far, nationwide inventories have fallen 9.8% in 2017.

Baker Hughes published its US crude oil rig report on December 22, 2017. The US crude oil rig count was flat at 747 on December 15–22, 2017.

According to PointLogic, US dry natural gas production rose 0.9% to 76.8 Bcf (billion cubic feet) per day on December 14–20, 2017.

The EIA estimated that US crude oil production rose by 9,000 bpd (barrels per day) to 9,789,000 bpd on December 8–15, 2017.

According to the EIA, global crude oil supply outages fell by 10,000 bpd (barrels per day) or 0.7% to 1,555,000 bpd in November 2017.

Revenues from Weatherford International’s (WFT) North America region saw robust revenue growth of ~20% from 3Q16 to 3Q17.

Cushing inventories fell by 3,317,000 barrels to 52.2 MMbbls (million barrels) on December 1–8, 2017, according to the EIA.

US dry natural gas production was flat at 76.1 Bcf (billion cubic feet) per day on December 7–13, 2017, according to PointLogic.

US distillate inventories fell by 1.3 MMbbls (million barrels) to 128.1 MMbbls on December 1–8, 2017, according to the EIA.

Weekly US crude oil production hit 9,707,000 bpd for the week ending December 1, 2017—the highest level ever.

US dry natural gas production fell by 0.5 Bcf per day or 0.7% to 76.2 Bcf per day on November 30–December 6, 2017, according to PointLogic.

According to the EIA, US gasoline inventories rose by 6,780,000 barrels to 220.8 MMbbls (million barrels) on November 24–December 1, 2017.

US crude oil production rose by 290,000 bpd (barrels per day) or 3.1% to 9,481,000 bpd in September 2017—compared to the previous month.

In October 2017, the international offshore rig count was 204—down 14 rigs from 190 in the previous month.

Baker Hughes, a GE company, is scheduled to release its US crude oil and natural gas rig count report on December 1, 2017.

The EIA estimated that US crude oil inventories fell by 3.4 MMbbls (million barrels) to 453.7 MMbbls on November 17–24, 2017.

US crude oil exports rose by 462,000 bpd or 41% to 1,591,000 bpd on November 10–17, 2017, according to the EIA.

PointLogic estimates that US natural gas production rose 0.4% to 75.9 Bcf (billion cubic feet) per day on November 16–22, 2017.

US gasoline inventories According to the EIA (U.S. Energy Information Administration), US gasoline inventories rose by 44,000 barrels to 210.4 MMbbls (million barrels) between November 10 and 17, 2017. However, gasoline inventories were 13.5 MMbbls (6.1%) lower than in the same period in 2016. The market estimated that US gasoline inventories would rise by 737,000 barrels between […]

Saudi Arabia’s crude oil exports to the US fell to 525,000 bpd in October 2017—the lowest in 30 years. Exports fell due to ongoing output cuts.

As you can see in the table below, Baker Hughes, a GE Company (BHGE), is the largest company by market capitalization.

The EIA estimated that Cushing’s crude oil inventories fell by 1,504,000 barrels to 63 MMbbls (million barrels) on November 3–10, 2017.