National Oilwell Varco Inc

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.

National Oilwell Varco’s cash from operating activities (or CFO) rose by more than four times in 1Q16 compared to 1Q15.

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

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%.

Approximately 90% of the analysts tracking Halliburton (HAL) recommended a “buy,” ~8% recommended a “hold,” and the rest recommended a “sell.”

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.”

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.

Weatherford International’s (WFT) Latin American revenue fell the most (21.0%) from 1Q16 to 1Q17.

Weatherford International’s (WFT) management expects crude oil price to start stabilizing by the second half of 2016. It plans to keep reducing costs to manage the current uncertainty.

In this series, we’ve seen Schlumberger’s (SLB) stock has held up following its latest quarter earnings release. Now let’s look at what Wall Street forecasts.

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

Policymakers are now hinting toward a rate hike in June. But markets seem to be feeling otherwise.

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.

Wall Street’s forecasts for Halliburton include ~76% of analysts rating the company as a “buy” or some equivalent.

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

National Oilwell Varco’s (NOV) net debt increased 4% in 1Q17 over 1Q16. Its net debt amounted to ~$1.7 billion in 1Q17.

On May 3, 2017, after Flotek Industries’ 1Q17 earnings were released, all of the sell-side analysts tracking Flotek Industries rated it as a “buy.”

Baker Hughes, a GE Company (BHGE), is the largest company by market capitalization in our select set of major oilfield services and equipment companies.

Many oilfield equipment and services (or OFS) companies witnessed stupendous rises in their net incomes from 2009 to 2014.

Greenlight disclosed a new position in Lam Research Corporation, which accounts for 1.01% of the fund’s 1Q 2014 portfolio.

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.

The correlation coefficient between Schlumberger’s stock price and crude oil prices from January 11, 2017, to January 11, 2018, was 0.47.

The short interest in Schlumberger (SLB), as a percentage of its float, is 1.5% as of August 7, 2017—compared to 1.6% as of June 30, 2017.

From 2009 to 2015, Halliburton’s (HAL) net debt swelled 340%. By September 30, 2016, HAL’s net debt rose 71% compared to December 31, 2015.

Wall Street analysts expect Halliburton’s (HAL) 4Q16 adjusted earnings per share to reach $0.013—a 29% improvement over its 3Q16 adjusted earnings.

Greenlight disclosed a new position in American Capital Agency Corporation. It accounts for 1.69% of the fund’s 1Q 2014 portfolio.

Short interest in Nabors Industries (NBR) as a percentage of its float was 11.4% as of June 19, 2017, compared to 10.1% as of March 31, 2017.

On April 7, ~18% of the analysts tracking National Oilwell Varco rated it a “buy,” ~74% rated it a “hold,” and only 8% of the analysts rated it a “sell.”

In the past year, Schlumberger’s (SLB) North America revenues declined 14%. In 1Q17, SLB’s revenues from North America totaled 28% of its total revenues.

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

From 4Q15 to 4Q16, National Oilwell Varco’s (NOV) EBITDA margin crashed, dropping from 6.8% to -45.3% during this period.

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

Greenlight disposed of its stake in General Motors, which accounted for 9.55% of the fund’s 4Q 2013 portfolio.

On March 31, 2017, Nabors Industries (NBR) stock was 20.0% lower than it was on December 30, 2016. In 1Q17, NBR’s adjusted earnings were negative.

The Energy Chemistry Technology segment accounted for 76% of Flotek Industries’ revenues in 1Q17. The segment’s revenues rose 36% in 1Q17—compared to 1Q16.

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

In the past year, Weatherford International stock has fallen 19% as of August 4, 2017. It has underperformed the VanEck Vectors Oil Services ETF (OIH).

On May 20, 2017, Schlumberger signed a memorandum of understanding with Saudi Arabia’s state-owned oil company Saudi Aramco.

National Oilwell Varco’s (NOV) total debt decreased ~18% in 4Q16 over 4Q15. Its cash and marketable securities decreased 31% during the same period.

A higher US rig count could increase the 4Q16 revenues and earnings of oilfield equipment and services providers such as National Oilwell Varco and Oil States International.

Short interest in Schlumberger (SLB) as a percentage of its float is 1.2% as of July 6, 2017, compared to 1.2% as of March 31, 2017.

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.

Schlumberger’s enterprise value (or EV) when scaled by trailing-12-month (or TTM) adjusted EBITDA is lower than the peer average in our group here.

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

Weatherford International (WFT) stock fell 16.0% in the week ended November 17, 2017. The VanEck Vectors Oil Services ETF (OIH) generated a return of -6.0% during this period.

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

In fiscal 1Q16, Schlumberger’s (SLB) net debt-to-EBITDA ratio was 1.1. SLB’s indebtedness more than doubled from 0.53 a year ago.

Schlumberger (SLB) is the largest company by market capitalization among our set of select OFS (oilfield equipment and services) companies.

Schlumberger (SLB) released its 3Q17 financial results on October 20, 2017. Its total revenues were ~$7.9 billion, a 12.6% rise from ~$7.1 billion in 3Q16.

On March 24, 2017, Schlumberger and Weatherford International announced that they had inked an agreement to form a joint venture (or JV) called OneStimSM.

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 May 8, 2017, Basic Energy Services’ stock price was trading at $27.29, a fall of ~23% since the beginning of 2017. In this series, we’ll analyze why.

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

National Oilwell Varco’s TTM PE (price-to-earnings) multiple of ~15x is lower than its peer average in the group.

Halliburton’s (HAL) EV (approximately the summation of its equity value and net debt) when scaled by trailing-12-month (or TTM) adjusted EBITDA is lower than the peers’ average in the group.

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

On February 24, ~14% of the analysts tracking National Oilwell Varco rated it as a “buy,” ~74% rated it as a “hold,” and 12% rated it as a “sell.”

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 correlation with crude oil prices increased in the trailing year to September 8, 2017—compared to the previous year.

From September 30, 2016 through December 30, 2016, the US rig count rose 26.0%. A higher US rig count could increase Schlumberger’s (SLB) 4Q16 revenues and earnings.

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

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

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.

In 9M17, Schlumberger reported a net income of $749 million—a huge improvement compared to 9M16 when it recorded a net loss of nearly $1.48 billion.

Many oilfield equipment and services (or OFS) companies’ cash flows have taken a beating following the energy price weakness in the past two years.

In this series, we’ll analyze Halliburton’s drivers, balance sheet, free cash flow, and dividend yield.

In the first six months of 2017, Tidewater’s free cash flow was -$10 million. Tidewater generated positive free cash flow in fiscal 2016.

Since September 9, 2016, National Oilwell Varco stock has fallen 4% as of September 8, 2017. During this period, National Oilwell Varco outperformed OIH.

In this series, we’ll compare four of the most prominent US oilfield services and equipment companies—Schlumberger (SLB), Halliburton (HAL), Baker Hughes (BHI), and National Oilwell Varco (NOV).

Halliburton’s (HAL) 2Q17 revenue rose ~29% to $5.0 billion from $3.8 billion a year ago.

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

Halliburton (HAL) plans to spend $2.0 billion on capital projects in 2018.

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

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

The latest dividend reduction should improve National Oilwell Varco’s future net cash flow. Its free cash flow increased 58% to $493 million in fiscal 4Q15.

Baker Hughes is a leading supplier of oilfield services, products, technology, and systems to the worldwide oil and natural gas industry.

Schlumberger released its 2Q15 financial results on July 16. The company recorded total revenues of $9.01 billion for 2Q15, down 25.3% from $12.05 billion recorded in 2Q14.

Approximately 73% of the analysts tracking Schlumberger (SLB) have recommended a “buy” or some equivalent as of January 11, 2018.

According to Barclays, BHI is “overweight” and it has set a price target of $65 for the company. KeyBanc gave Baker Hughes a “hold” rating.

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.

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.

Glenview Capital disclosed a new position in Cadence Design Systems (CDNS) that accounts for 1.21% of the fund’s 2Q14 portfolio. Cadence Design Systems is based in San Jose, California. It develops solutions for its customers to design increasingly small and complex integrated circuits (or ICs) and electronic devices.

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

In this series, we’ll go through some of the main positions that Greenlight Capital, founded by David Einhorn, traded in 1Q 2014.

Larry Robbins’ Glenview Capital Management delivers attractive absolute returns through fundamental research and individual security selection. The size of Glenview’s portfolio increased from $15.2 billion in 1Q14 to $17.2 billion last quarter.

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

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

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.

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.

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

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

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.

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%.