National Oilwell Varco Inc

Yesterday, Baker Hughes stock rose by 0.2%, with a year-to-date rise of 3.9%. We’ll focus on the company’s institutional investors in Q3 2019.

Both Schlumberger and Halliburton are underperforming the S&P 500, but Wall Street analysts remain bullish on oilfield stocks.

Schlumberger (SLB) announced its third-quarter results today. The company’s revenue rose 3% sequentially to $8.5 billion in the quarter.

The top ten institutional investors in National Oilwell Varco added 5.6 million shares to their positions during the first quarter.

Schlumberger (SLB) has risen 31% so far in 2019.

Among the 37 analysts tracking Schlumberger, six recommended a “strong buy,” 16 recommended a “buy,” and 15 recommended a “hold.”

The total US rig count fell from 1,083 in the week ending December 28 to 1,006 in the week ending March 29. The rigs fell by 77 in the first quarter.

Schlumberger (SLB) is scheduled to report its first-quarter earnings on April 18. Analysts’ consensus EPS estimate is $0.3 per share.

Halliburton (HAL) is trading at a forward EV-to-EBITDA multiple of ~8.1x, which is lower than its five-year average multiple of 10.2x.

Baker Hughes (BHGE), Schlumberger (SLB), and National Oilwell Varco (NOV) have debt-to-equity ratios of 0.2x, 0.4x, and 0.2x, respectively.

Baker Hughes expects to spend up to 5% of its 2019 revenues on capital projects in 2019.

Increased global drilling activity and focused cost reduction efforts contributed to National Oilwell Varco’s earnings growth in 2018.

Halliburton (HAL) and National Oilwell Varco (NOV) recorded 16% revenue growth in 2018—compared to 2017.

After falling significantly in 2018, the top oilfield services stocks have witnessed some gains in 2019.

Combined, nine of the top ten investors added 2.4 million U.S. Silica Holdings shares to their positions in the fourth quarter.

The top three institutional investors in Baker Hughes (BHGE) are Capital World Investors, Dodge & Cox, and the Vanguard Group.

Helmerich & Payne reported its first-quarter results on January 29. The company reported an EPS of $0.17 for the quarter ending December 31.

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.

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.

Schlumberger (SLB) is scheduled to report its fourth-quarter results on January 18. Analysts expect its EPS to fall ~25% to $0.36.

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.”

Baker Hughes (BHGE) and National Oilwell Varco (NOV) have fallen 26% and 11%, respectively, YTD.

National Oilwell Varco’s EPS of $0.00 missed analysts’ estimates of $0.12 for the third quarter.

Halliburton (HAL) reported its third-quarter earnings results on October 22. The company reported EPS of $0.50.

On August 24–31, upstream stock California Resources (CRC) saw the highest gain on our list of energy stocks.

Halliburton (HAL) stock has fallen ~18% in 2018, underperforming its sector peers. HAL stock fell significantly after its Q2 earnings.

The Vanguard Group, Dodge & Cox, and First Eagle Investment Management are the top three institutional investors in National Oilwell Varco.

Capital World Investors, Dodge & Cox, and the Vanguard Group are the top three institutional investors in Baker Hughes (BHGE).

Seven of the top ten investors reduced their positions in Schlumberger in the second quarter, which likely hints at investors’ bearish sentiment.

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.”

WTI and Brent oil prices could average $65.95 per barrel and $71.80 per barrel in 2018, according to the EIA.

US crude oil rigs rose by three to 861 on July 20–27. The rigs hit 858 for the week ending July 20—near the lowest level since May 18.

Since April 24, when Weatherford’s Q1 2018 financial results were released, its stock has increased 26%.

Since April 26 when National Oilwell Varco released its Q1 2018 financial results, NOV stock has risen 10%.

From Q2 2017 to Q2 2018, National Oilwell Varco’s (NOV) Wellbore Technologies segment revenue rose 29.2%.

The C&P segment accounted for 68% of HAL’s Q2 revenues.

As of January 19, the short interest in ION Geophysical (IO) as a percentage of its float was 8.9%—compared to 6.4% as of January 1.

Schlumberger (SLB) released its Q2 2018 results on July 20 with total revenue of $8.3 billion, up 11.3% from $7.46 billion in Q2 2017.

As of July 16, sell-side analysts’ mean target price for National Oilwell Varco was $37.7. Currently, National Oilwell Varco is trading at ~$43.9.

The correlation between National Oilwell Varco’s (NOV) stock price and crude oil prices on April 16–July 16 was 0.52.

The short interest in National Oilwell Varco (NOV) as a percentage of its float was 5.9% as of July 16.

From April 23 to July 6, Halliburton’s implied volatility has increased from 25.0% to 28.0%.

Short interest in Halliburton (HAL) as a percentage of its float was 1.47% on July 6, compared to 3.23% on July 6, 2017.

Nabors Industries’ (NBR) implied volatility was 51.3% as of July 6.

Between April 20 and July 3, Schlumberger’s (SLB) implied volatility increased from 24% to 25%.

In the second quarter of 2018, analysts expect Schlumberger (SLB) to report $0.43 adjusted EPS, a 13% sequential increase.

From April 20 to June 29, Schlumberger’s implied volatility has remained nearly unchanged at ~24.0%.

Approximately 50% of the Wall Street analysts tracking Superior Energy Services rated it as a “buy” or some equivalent as of June 28.

The short interest in Tenaris S.A. (TS) as a percentage of its float was 0.76% as of June 25—compared to 1.5% as of January 1.

Approximately 5% of the analysts tracking Oceaneering International recommended a “sell” or some equivalent as of June 25.

On March 25–June 25, the percentage of analysts recommending a “sell” or some equivalent for Tenaris increased from 5% to 6%.

Approximately 10% of the analysts tracking National Oilwell Varco have recommended a “sell” or some equivalent as of June 25.

According to Wall Street analysts’ ratings, National Oilwell Varco (NOV) has the highest “sell” recommendations in the OFS industry.

Approximately 74% of the analysts tracking Schlumberger recommended a “buy” or some equivalent as of June 19.

Schlumberger’s (SLB) first-quarter financial results were released on April 20. Between April 20 and June 15, Schlumberger’s implied volatility fell from 24.1% to 22%.

As of June 13, 2018, short interest in CARBO Ceramics (CRR) as a percentage of its float was 45.8% compared to 41.1% as of June 13, 2017.

Halliburton’s forward EV-to-EBITDA multiple compared to its adjusted TTM EV-to-EBITDA is lower than the peer average in our group.

From June 8, 2017, to June 7, 2018, Halliburton (HAL) stock has risen 11%. The price of WTI crude oil has risen 45% in the same period.

On June 5, Haliburton (HAL) was trading at $47.87, which was 4% higher than a year ago. In this series, we’ll see what’s driving it.

On March 31, 2018, Halliburton’s (HAL) net debt was $8.57 billion, 3% lower than its net debt of $8.88 billion on March 31, 2017.

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

As of May 25, 2018, short interest in Keane Group (FRAC) as a percentage of its float was 13.4%, compared to 32.5% as of May 25, 2017.

On May 23, short interest in NOW (DNOW) as a percentage of its float had risen 145% YoY (year-over-year) to 16.3% from 6.7%.

Approximately 13% of the Wall Street analysts tracking National Oilwell Varco (NOV) have recommended a “buy” or equivalent as of May 18.

National Oilwell Varco’s (NOV) CFO turned negative in the first quarter to -$129 million despite 3% higher year-over-year revenues.

In this series, we’ll look at the lowest five free cash flow companies in the first quarter in the oilfield equipment and services industry.

Baker Hughes reported that US crude oil rigs were flat at 844 on May 11–18—the highest level since March 13, 2015.

Since May 10, 2017, short interest in HLX has gone down 15%.

In this article, we’ll compare the relative valuation multiples of Baker Hughes (BHGE) and National Oilwell Varco (NOV).

Baker Hughes’s (BHGE) quarterly DPS (dividend per share) remained unchanged from 1Q17 to 1Q18.

In this series, we’ll compare Baker Hughes, a GE company, and National Oilwell Varco, two top oilfield equipment and services companies.

Baker Hughes’s FCF was $177 million in 1Q18. Baker Hughes’s FCF in 1Q18 improved dramatically from -$422 million the previous year.

Baker Hughes recorded ~133% capex growth in 1Q18 compared to 1Q17. In 1Q18, Baker Hughes spent ~$177 million on the capex.

In 1Q18, Baker Hughes’s reported net income was $70 million—126% higher compared to the net income in 4Q17.

Halliburton’s EV (or enterprise value), when scaled by the TTM (trailing 12-month) adjusted EBITDA, is the lowest in our group.

On April 20, Schlumberger’s (SLB) 1Q18 financial results were released, and its implied volatility was 24.1%.

Short interest in National Oilwell Varco (NOV) as a percentage of its float was 6.1% as of April 16, 2018.

In 1Q18, Wall Street analysts expect National Oilwell Varco (NOV) to post adjusted EPS (earnings per share) of -$0.01, compared with -$0.04 in 4Q17.

Based on its implied volatility, Schlumberger (SLB) stock could close between $65.44 and $70.46 in the next seven days.

Since Schlumberger (SLB) released in 4Q17 financial results on January 19, 2018, its implied volatility has risen to 21% to 31.7%.

Short interest in Schlumberger (SLB) as a percentage of its float was 1.7% on March 20, 2018, compared to 1.2% on March 20, 2017.

In the week starting on March 19, 2018, CARBO Ceramics (CRR) was the top gainer from the oilfield services group.

On January 19, 2018, Schlumberger’s (SLB) 4Q17 financial results were released.

Only two sell-side analysts track Flotek Industries (FTK), as surveyed by Reuters. Both analysts recommended a “buy” or some equivalent on March 9, 2018.

The short interest in Flotek Industries (FTK) as a percentage of its float was 18.8% as of March 9, 2018—compared to 26.0% as of March 10, 2017.

Flotek Industries underperformed OIH in the past year. Since March 10, 2017, Flotek Industries stock has decreased ~44%.

National Oilwell Varco’s forward PE multiple is positive, which reflects sell-side analysts’ estimates of positive earnings in the next 12 months.

Flotek Industries’ (FTK) forward EV-to-EBITDA multiple is at the steepest discount to its current EV-to-EBITDA multiple on March 9, 2018.

Approximately 89% of the Wall Street analysts tracking Halliburton (HAL) recommended a “buy” or some equivalent on March 5, 2018.

Baker Hughes’s quarterly dividend per share stands at $0.18. As of February, Baker Hughes’s stock price decreased 33% compared to the previous year.

National Oilwell Varco’s (NOV) capital expenditure or capex fell ~32% in fiscal 2017—compared to its capex spend in fiscal 2016.

Halliburton’s 2017 revenues from North America increased 71% from 2016. Halliburton generated ~56% of its total revenues from North America 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.

Halliburton (HAL) registered the highest revenue growth in our group. Halliburton’s 2017 revenues increased 29.8% to $20.62 billion.

Halliburton has outperformed OIH in the past year. Since February 6, 2017, Halliburton stock has decreased ~14%.

On March 2, 2018, Schlumberger’s (SLB) implied volatility was 27.1%.

On December 29, 2017, Schlumberger’s (SLB) stock price was 20% lower compared to December 30, 2016.

As of February 16, 2018, the short interest in Fairmount Santrol Holdings (FMSA) as a percentage of its float was 10.3%.

In this article, we’ll compare relative valuation multiples for Baker Hughes (BHGE) and National Oilwell Varco (NOV).

Net debt is total debt less cash, cash equivalents, and short-term marketable securities.