Understanding Fund Generation among Major OFS Companies
RPC Inc.’s internal cash generation was adequate to cover its external obligations in 2015. Dril-Quip internal cash generation was more than adequate.
What’s Wall Street’s Forecast for NOW Stock?
Of the analysts tracking NOW (DNOW) on May 23, ~36% recommended “buy” or some equivalent, 64% recommended “hold,” and none recommended “sell.”
Ranking the Top 5 OFS Companies by Market Returns
In 2017, not many companies in the OFS (oilfield equipment and services) industry have had positive returns from the stock market.
Baker Hughes’ Share Price and Returns after Fiscal 4Q15 Earnings
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%.
Explaining Diamond Offshore Drilling’s Historical Valuation
In the first three quarters of fiscal 2015, Diamond Offshore Drilling’s net debt continued to rise while its share price fell sharply.
Wall Street’s Forecasts for Halliburton after Low Fiscal 4Q15 Earnings
Approximately 81% of analysts tracking Halliburton have rated it a “buy,” whereas approximately 17% of analysts tracking the company have rated it a “hold.”
The Top 5 Oilfield Companies by Net Debt-To-Equity Ratio
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’ Recommendations for RES, DRQ, WFT, PTEN, and FTK
Approximately 79% of the Wall Street analysts tracking Patterson-UTI Energy (PTEN) have recommended a “buy” or some equivalent as of May 15.
Wall Street Targets for the Top Free Cash Generating Oilfield Stocks
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.
What Does Nabors Industries Project for 2H16?
Nabors Industries’ (NBR) management thinks the US energy upstream operators are set to increase drilling-related spending.
Key US Shale Crude Oil Production: Projections for January 2016
According to its report on December 7, 2015, the EIA expects crude oil production to fall at five key shales by January 2016.
Explaining Nabors Industries’ Historical Valuation
Nabors Industries’ historical valuation fell from fiscal 2009 until fiscal 2012, then kept rising until fiscal 2014.
What’s Driving NBR’s Revenue and Earnings?
Nabors Industries’ revenue was trending upward from fiscal 2Q13 until fiscal 3Q14, when it started falling.
Will Upstream Operators’ Capex Impact TechnipFMC in Q2 2018?
In the past year, crude oil has increased ~64%.
Oilfield Service Gainers: IO, RES, TTI, BAS, and AROC
In this part, we’ll analyze the top percentage gainers in the US oilfield service sector this week.
Analysts’ Views on the Lowest Net Debt-To-Equity Oilfield Stocks
Of the analysts tracking Baker Hughes, a GE company (BHGE), on April 10, 2018, ~47% recommended “buy” or some equivalent and ~53% recommended “hold.”
Analysts’ Recommendations: WFT, CRR, RES, FMSA, and SLCA
Analysts’ consensus target price for U.S. Silica Holdings was ~$38.5 on March 14. U.S. Silica Holdings is trading near $26.3.
Short Interest in 2018: WFT, CRR, RES, FMSA, and SLCA
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.
What Does Flotek Industries’ Forward Valuation Suggest?
Flotek Industries’ forward EV-to-EBITDA multiple (11.7x) is significantly lower than its current EV-to-EBITDA multiple (~199x).
ION Geophysical Is Top Loser in Oilfield Services This Week
In the current week, ION Geophysical (IO) is the top declining stock from the oilfield services sector.
Short Interest in the Top 5 Oilfield Companies by Free Cash Flow
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.
Did the Best-Performing OFS stocks Take Cues from Crude Oil?
The correlation coefficient between ION Geophysical’s stock price and crude oil prices from December 30, 2016, to November 20, 2017, was -0.39.
Why RPC Is the Third-Best-Performing OFS Stock in 2017
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.
Who Were the Biggest Oilfield Services Gainers Last Week?
In the week ending September 8, 2017, Carbo Ceramics (CRR) was at the top of the list of gainers from the oilfield services group.
How Does the US Rig Count Affect the OFS Industry?
In September 2008, the overall US rig count hit 2,031, the highest level since July 1987, according to Baker Hughes (BHI).
Will US Rig Counts Affect Weatherford International in 3Q16?
In the past year, Weatherford International’s (WFT) revenue share from North America has come down.
Why Utica Shale’s Natural Gas Production Rose 28% in One Year
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.
Can New Amendments Extend Patterson-UTI Energy’s Credit Commitment?
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 […]
Will Flotek Industries Reduce Its Debt?
Flotek Industries’ net debt-to-trailing 12 month adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) rose from 2Q15 to 2Q16.
Will the US Rig Count Affect Flotek Industries in 3Q16?
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.
What Wall Street Is Forecasting for RPC after 2Q16 Earnings
Approximately 43% of analysts tracking RPC rated it a “buy” or some equivalent. About 43% rated the company a “hold.”
RPC Stock Reaction after 2Q16 Earnings Is Mildly Positive
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 Beat 2Q16 Earnings Estimates: Was It the Robust Service?
RPC (RES) released its fiscal 2Q16 financial results on July 27, 2016. Robust service intensity helped earnings exceed analysts’ estimates.
The Word on the Street: Analyst Recommendations for Mid-Cap OFS Stocks
Approximately 69% of analysts tracking Weatherford International recommend a “buy,” while ~23% recommend a “hold.” The rest recommend a “sell.”
Inside the Net Debt-to-EBITDAs of WFT, RES, DRQ, and CLB in 1Q16
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.
Understanding Mid-Cap OFS Companies’ Correlations with Crude Oil
The correlation coefficient between Weatherford International’s stock price and crude from June 2015 to now is the lowest among our four OFS companies.
A Comparative Valuation of Four Representative OFS Mid-Caps in 2Q16
Dril-Quip’s EV, when scaled by TTM adjusted EBITDA is the lowest in our group of four OFS companies after 1Q16.
Did RPC, Inc. Lose Revenue More than OFS Peers in 1Q16?
All four of our select OFS companies—Weatherford International, Core Laboratories, Dril-Quip, and RPC, Inc. (RES)—recorded YoY revenue declines in 1Q16.
Utica Shale’s Natural Gas Production Rose 46% in a Year
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.
How Does RPC, Inc.’s Compare to Peers in Valuation?
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.
Inside RPC, Inc.’s Value Drivers
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.
Understanding the Outlook of RPC, Inc.’s Management
RPC, Inc.’s (RES) management thinks that energy sector economics will get better and that this will benefit the OFS industry in particular.
Why RPC, Inc.’s Share Price Looks to Be Facing Short-term Headwinds
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.
Utica Shale Natural Gas Production Soared in March, and Here’s Why
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.
Analyzing One-Year Returns for Top Oilfield Services Companies
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.
A Key Valuation Comparison of 4 OFS Mid-Caps in 2015
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.
Analyzing the Net-Debt-to-EBITDA Ratios of 4 Major 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.
Halliburton’s Share Price Is Gathering Strength, and Here’s Why
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.
Why February Bakken Crude Oil Production Fell 6.8% Year-over-Year
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.
What Does RPC’s Management Think about Its Outlook?
RPC’s (RES) management thinks that the oilfield services and equipment (or OFS) industry will continue to face challenges in 2016.
Is RPC’s Share Price Gathering Strength?
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.
Why Utica Shale Natural Gas Production Rose 54% in January
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.
Analyzing FMC Technologies’ Growth Drivers
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.
Schlumberger: A Look at Management’s Outlook and Strategies
Energy price recovery is taking longer than Schlumberger’s management had anticipated.
Explaining Ensco’s Returns Relative to Its Value Drivers
Oilfield equipment and services companies like Ensco (ESV) are affected by crude oil and natural gas rig counts and energy prices.
Analyzing Ensco’s Free Cash Flow
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.
Why Transocean’s Free Cash Flows Have Deteriorated
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.
What Does NOV’s Management Think about Its Outlook?
NOV’s management indicates that it is actively looking for merger and acquisition opportunities to gain market share when the energy market upturn begins.
Haynesville Shale Natural Gas Production Was Up Again in November
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.
Halliburton’s 2Q15 Revenues and Earnings Beat Estimates
In this post, we’ll discuss Halliburton’s 2Q15 revenues and earnings versus analysts’ consensus estimates in depth.
Key Shale Crude Oil Production to Fall in August, Says EIA
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.
EOG Resources’ Free Cash Flows Turn Negative Again
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.
Onshore Rigs Rise July 2 Week: Is Onshore Activity Rebounding?
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.
US Onshore Rigs Rose Last Week: Is It the Bottom?
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.
US Onshore Rigs Play a Balancing Act across the US
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.
C&J Energy Services and RPC: Last Week’s Sectoral Standouts
In our selected set of companies, not one oilfield equipment and services company saw a loss. Within this winning sector, there were two standouts.