RPC Inc

In the past year, crude oil has increased ~64%.

In this part, we’ll analyze the top percentage gainers in the US oilfield service sector this week.

Of the analysts tracking NOW (DNOW) on May 23, ~36% recommended “buy” or some equivalent, 64% recommended “hold,” and none recommended “sell.”

Approximately 79% of the Wall Street analysts tracking Patterson-UTI Energy (PTEN) have recommended a “buy” or some equivalent as of May 15.

Of the analysts tracking Baker Hughes, a GE company (BHGE), on April 10, 2018, ~47% recommended “buy” or some equivalent and ~53% recommended “hold.”

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’ consensus target price for U.S. Silica Holdings was ~$38.5 on March 14. U.S. Silica Holdings is trading near $26.3.

The short interest in CARBO Ceramics (CRR) as a percentage of its float was 51.2% as of March 14, 2018—compared to 46.0% as of January 1, 2018.

Flotek Industries’ forward EV-to-EBITDA multiple (11.7x) is significantly lower than its current EV-to-EBITDA multiple (~199x).

In the current week, ION Geophysical (IO) is the top declining stock from the oilfield services sector.

Short interest in Schlumberger (SLB) as a percentage of its float was 1.6% as of December 19, 2017, compared to 1.2% as of December 30, 2016.

The correlation coefficient between ION Geophysical’s stock price and crude oil prices from December 30, 2016, to November 20, 2017, was -0.39.

RPC’s (RES) YTD (year-to-date) returns were nearly 16.5% until November 20, 2017. Its stock price has been relatively stable in the past month.

In 2017, not many companies in the OFS (oilfield equipment and services) industry have had positive returns from the stock market.

In this article, we’ll look at Wall Street analysts’ targets for the oilfield equipment and services (or OFS) stocks that produced the highest free cash flow in 3Q17.

In the week ending September 8, 2017, Carbo Ceramics (CRR) was at the top of the list of gainers from the oilfield services group.

In September 2008, the overall US rig count hit 2,031, the highest level since July 1987, according to Baker Hughes (BHI).

In the past year, Weatherford International’s (WFT) revenue share from North America has come down.

On September 12, 2016, the EIA’s Drilling Productivity Report estimated that Utica Shale natural gas production reached ~3.6 Bcf per day in August 2016.

Nabors Industries’ (NBR) management thinks the US energy upstream operators are set to increase drilling-related spending.

Patterson-UTI Energy’s net debt-to-EBITDA Patterson-UTI Energy’s (PTEN) net debt-to-TTM (trailing-12-month) EBITDA (earnings before interest, tax, depreciation, and amortization) trended upward from fiscal 2Q15 through fiscal 2Q16. In 2Q16, Patterson-UTI Energy’s net debt-to-EBITDA was 2.7x, or 208% higher than one year previously. Remember, net debt-to-EBITDA reflects how easily a company can repay its debts from its […]

Flotek Industries’ net debt-to-trailing 12 month adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) rose from 2Q15 to 2Q16.

In the past year, Flotek Industries’ revenue share from the United States has fallen. In 2Q16, FTK’s US revenue share fell to 75% compared to 84% in 2Q15.

Approximately 43% of analysts tracking RPC rated it a “buy” or some equivalent. About 43% rated the company a “hold.”

RPC (RES) released its financial results for fiscal 2Q16 on July 27, 2016. That day, RPC stock reaction was mildly positive, rising 1% from the previous day’s close.

RPC (RES) released its fiscal 2Q16 financial results on July 27, 2016. Robust service intensity helped earnings exceed analysts’ estimates.

Approximately 69% of analysts tracking Weatherford International recommend a “buy,” while ~23% recommend a “hold.” The rest recommend a “sell.”

The correlation coefficient between Weatherford International’s stock price and crude from June 2015 to now is the lowest among our four OFS companies.

Dril-Quip’s EV, when scaled by TTM adjusted EBITDA is the lowest in our group of four OFS companies after 1Q16.

RPC Inc.’s internal cash generation was adequate to cover its external obligations in 2015. Dril-Quip internal cash generation was more than adequate.

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.

All four of our select OFS companies—Weatherford International, Core Laboratories, Dril-Quip, and RPC, Inc. (RES)—recorded YoY revenue declines in 1Q16.

The Utica Shale’s natural gas production reached 3.7 Bcf (billion cubic feet) per day in May 2016. That’s nearly unchanged from production in April 2016.

RPC, Inc.’s EV, when scaled by TMM adjusted EBITDA is significantly higher than the peer average. FTI’s EV-to-EBITDA multiple is the lowest in the group.

RPC, Inc.’s Technical Services saw a ~54% one-year revenue fall in 1Q16, whereas Support Services witnessed a ~52% revenue decline during the same period.

RPC, Inc.’s (RES) management thinks that energy sector economics will get better and that this will benefit the OFS industry in particular.

On May 6, 2016, RPC, Inc.’s (RES) stock was trading at $13.70, which is ~5% lower than its share price one year previously.

According to the EIA, the Utica Shale in eastern Ohio has become one of the fastest-growing natural gas producing regions in the United States.

Based on the past year’s performance, many of the oilfield equipment and services stocks have underperformed the industry ETF. The slump in the US rig count, which started in October 2014, has negatively affected the OFS sector.

RES’s forward EV-to-EBITDA multiple expansion versus its adjusted TTM EV-to-EBITDA is the highest in our peer group of mid-cap OFS companies.

In fiscal 2015, RPC’s (RES) net-debt-to-EBITDA ratio stood at -0.54, down from the 0.34 it saw in 2014. The company’s long-term debt stood at zero in 2015.

As of March 11, Halliburton has had a fair run on the stock market, but the long-pending acquisition of Baker Hughes has been a drag on its price.

On March 7, 2016, the EIA estimated that the Bakken Shale produced 1.1 MMbpd (million barrels per day) of crude oil in February 2016.

RPC’s (RES) management thinks that the oilfield services and equipment (or OFS) industry will continue to face challenges in 2016.

RPC is a US-based oil and gas equipment and services company. On February 17, 2016, RPC was trading at $13.64, a 1% fall from its price a year ago.

The EIA estimates that Utica Shale natural gas production reached ~3.2 Bcf (billion cubic feet) per day in January 2016. That’s ~2.2% more than production in December 2015 and 54% more than production in January 2015.

Since 3Q14, FMC Technologies’ (FTI) revenues have decreased 22% through 3Q15. Lower North America drilling activity decreased FTI’s measurement solutions business, and a strengthening US dollar affected FTI’s revenues negatively during this period.

In the past year, Baker Hughes’ stock has returned -23% (net of dividends) until January 28. In the past year, BHI has outperformed the VanEck Vectors Oil Services ETF (OIH), which has returned -26.7%.

Approximately 81% of analysts tracking Halliburton have rated it a “buy,” whereas approximately 17% of analysts tracking the company have rated it a “hold.”

Energy price recovery is taking longer than Schlumberger’s management had anticipated.

Nabors Industries’ historical valuation fell from fiscal 2009 until fiscal 2012, then kept rising until fiscal 2014.

Nabors Industries’ revenue was trending upward from fiscal 2Q13 until fiscal 3Q14, when it started falling.

In the first three quarters of fiscal 2015, Diamond Offshore Drilling’s net debt continued to rise while its share price fell sharply.

Oilfield equipment and services companies like Ensco (ESV) are affected by crude oil and natural gas rig counts and energy prices.

Ensco’s cash from operating activities (or CFO) deteriorated in fiscal 3Q15 over fiscal 3Q14. During this period, the company’s operating cash flow decreased 43% to $341 million.

RIG’s cash from operating activities (or CFO) deteriorated in 3Q15 compared 3Q14. During this period, the company’s operating cash flow fell 26.5% to $648 million.

NOV’s management indicates that it is actively looking for merger and acquisition opportunities to gain market share when the energy market upturn begins.

The number of active rigs at the Haynesville Shale was 33 in November 2015, up from 29 in October. A year ago, there were 49 drilling rigs in the region.

According to its report on December 7, 2015, the EIA expects crude oil production to fall at five key shales by January 2016.

In this post, we’ll discuss Halliburton’s 2Q15 revenues and earnings versus analysts’ consensus estimates in depth.

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.

During the week ending July 2, 2015, the US land-based, or onshore, rig count rose by two from the previous week’s count. Last week, there were 833 onshore rigs.

During the week ending June 26, the US onshore rig count rose by one from the previous week’s count. Last week, there were 831 onshore rigs.

Despite a 23% fall in 1Q15 capex, EOG Resources’ free cash flow crashed. It was -$585 million in 1Q15 versus $104 million in free cash flow for 4Q14.

During the week ending June 19, 2015, the US land-based, or onshore, rig count didn’t change from the previous week’s count—there were 830 land-based rigs.

In our selected set of companies, not one oilfield equipment and services company saw a loss. Within this winning sector, there were two standouts.