Oilfield Services Stocks That Lead in Short Interest
CARBO Ceramics (CRR) has the highest short interest–to–equity float ratio among OFS (oilfield services) stocks (OIH), as of August 23, 2016. The company’s short interest–to–equity float ratio is 36.9%.
High-Yield Bond Funds Saw Large Inflows, Yields and Spreads Fell
Investor flows into high-yield bond funds were positive for the week ended July 6, 2016, after three consecutive weeks of negative outflows.
What to Expect from Transocean’s 1Q17 Results
Transocean (RIG) plans to release its 1Q17 results on May 3, 2017, after the market closes.
Transocean: Aggressive in Rig Scrapping and Expansion
Many offshore drillers have scrapped their older rigs to reduce costs. Although scrapping rigs reduces costs, it also negatively impacts the earnings potential of the company.
Noble Corporation: Optimistic about Offshore Drilling Outlook
Noble Corporation’s (NE) contract drilling revenue was $354.0 million in 1Q17 compared to $591.0 million in the same period last year.
Transocean’s 3Q17 Earnings: What Analysts Expect
Analysts expect Transocean’s (RIG) 3Q17 EBITDA to fall to $313 million—a 10% fall from $349 million reported in 2Q17 and a 31% fall year-over-year.
Wall Street’s Forecasts for Transocean after 4Q15 Earnings
Now that Transocean has released its 4Q15 earnings, a whopping 56% of analysts have recommended a “sell.”
Which Oilfield Services Stocks Led in Short Interest?
On August 9, CARBO Ceramics had the highest short interest-to-equity float ratio among OFS stocks (OIH). Its short interest-to-equity float ratio was 36.9%.
A Look at Transocean’s Top Line in 3Q17
Transocean’s top line In 3Q17, Transocean’s (RIG) drilling revenue was $699 million, just 0.8% lower than its revenue of $705 million in the previous quarter, and 21% lower than the $886 million seen in 3Q16. Revenue sources Transocean earns its revenue mainly through floaters. The company sold its jack-up fleet to Borr Drilling in March 2017. […]
Inside Ocean Rig’s Revenue: Past, Present, and Future
In 2Q16, Ocean Rig’s (ORIG) revenue decreased by $56 million to $452 million, as compared to $508 million in 1Q16.
Why Citi Group Downgraded Diamond Offshore to a ‘Sell’
Diamond Offshore (DO) closed at $14.47 on October 12. Over the last month, DO’s stock has had a good run with a 16.3% return.
US Crude Oil Rig Count: Turning Point for the Bear Market?
Baker Hughes (BHI) reported that the US crude oil rig count rose by 11 to 758 on June 16–23, 2017. Rigs rose 1.5% week-over-week and 129.8% year-over-year.
Seadrill Stock Rose 98% in Week 20
The offshore drilling industry made headlines last week, especially Seadrill (SDRL), which reached a 52-week high of $0.73.
Is the Oil Rig Count Signaling Another Fall in Oil Prices?
On July 16, US crude oil August futures fell 4.2% and settled at $68.06 per barrel—their lowest closing level since June 21.
How Offshore Drilling Stocks Performed in 4Q16
In this series, we’ll look at Wall Street analysts’ recommendations and ratings for offshore drilling companies.
No Drilling Permits in the Gulf of Mexico in May
In May, no drilling permits were issued in the shallow waters of the Gulf of Mexico. In the first five months of 2018, only two were issued.
What Do Analysts Expect from Ensco’s 3Q16 EBITDA?
Analysts expect a fall in Ensco’s (ESV) EBITDA for 3Q16. Analysts’ estimate for Ensco’s EBITDA in 3Q16 is $221 million—a 58% fall from $532 million in 2Q16.
What Do Wall Street Analysts Think about Transocean?
The Market has given a consensus rating of “sell” to Transocean (RIG). Of the 37 analysts covering the stock, only 5% have given it a “buy” recommendation.
How Has Market Sentiment Changed for Noble?
Noble (NE) has a consensus “hold” recommendation based on ratings from 39 analysts covering the stock, according to Bloomberg.
How Could Rowan’s Capex Mold Its Free Cash Flow?
In 1Q16, Rowan Companies (RDC) had cash flow from operations of $160 million, which was substantially lower than the previous quarter’s $338 million.
Transocean Falls 22% YTD—What Analysts Have to Say
Of these 36 analysts, one analyst gave Transocean (RIG) a “strong buy,” six analysts gave a “buy” recommendation, and 15 analysts recommended a “hold.”
Seadrill’s 2Q16 Results Are on Their Way
Seadrill’s 2Q16 results are expected to be released on August 25, 2016. The company’s stock has fallen 19% since the start of the year.
Key Takeaways from Diamond’s 3Q15 Earnings and Conference Call
Diamond Offshore Drilling’s (DO) stock showed a 5% rise as of November 5, 2015, after the company released its 3Q15 earnings on November 2.
Offshore Drilling Industry: Early Stage of Recovery
In Transocean’s (RIG) 4Q17 conference call, the company provided insights about the offshore drilling industry’s outlook.
What’s Noble’s Debt Situation Look Like after 1Q16?
For the next five years, Noble needs to pay around $200 million–$300 million in debt every year. Then, the repayment for each year rises to around $400 million or more.
What Analysts Project for Ensco’s Revenue and EBITDA in 3Q17
Ensco’s (ESV) estimated $457 million in revenues in 3Q17 would be a 16.6% fall year-over-year, similar to 2Q17 revenue of $457 million.
Offshore Drillers: Analyzing Target Price Revisions
Wells Fargo raised the target price for Transocean (RIG) to $11 from $9.5. Simmons and Cowen and Company raised Transocean’s target price to $11.
Which Oilfield Services Stocks Lead in Short Interest?
Currently, Diamond Offshore Drilling’s (DO) short interest-to-equity float ratio is 32.1%, the highest among the oilfield services stocks that are part of the VanEck Vectors Oil Services ETF (OIH).
Week 50: Offshore Drilling Update
In the week ending December 15, 2017, offshore drilling stocks had mixed returns. Seadrill was the best performer, while Ensco was the worst performer.
SPY Jumped 1.6%, Rise in Oil Prices Bolstered US Equities
January 14, 2016, saw a rally in the US equities represented by SPY and SPXL. The US dollar rose as the market showed optimism and oil prices picked up.
Will US Shale Oil Production Rise for an 11th Straight Month?
Baker Hughes (BHI) published its weekly US oil and gas count report on October 13. US oil rigs fell by five to 743 from October 6 to 13.
Why Did Transocean Report Weak Quarterly Results?
Transocean, one of the world’s largest offshore drilling contractors, rose to one-week high price levels on Friday. It’s focusing on cost-cutting measures.
Seadrill: Best Performer among Peers Last Week
Offshore drilling stocks had mixed returns in Week 30, which ended July 27. The best performer was Seadrill (SDRL).
US Crude Oil Rigs Are Near 3-Month High
Baker Hughes, a GE company, published its weekly US crude oil rig report on December 1, 2017.
US Natural Gas Rig Count Hit December 2015 High
Baker Hughes (BHI) will release its weekly US natural gas rig count report on April 21, 2017. The rig count fell by three to 162 rigs on April 7–14, 2017.
Horizontal rig count tapers off after attaining historic high
Horizontal rig counts had been setting and breaking new records before last week’s fall, which marked the third decrease in the past 16 weeks.
Analyzing Ensco’s Acquisition of Atwood
Last week Ensco (ESV) announced its decision to acquire Atwood Oceanics (ATW) in an all-equity transaction.
US Crude Oil Rigs: Biggest Monthly Fall since May 2016
Baker Hughes released its weekly US oil rig count report on October 27, 2017. It reported that US oil rigs rose by one to 737 on October 20–27, 2017.
Rowan Companies Lowers Its 2018 Cost Guidance
Rowan Companies’ (RDC) direct operating costs, excluding rebillable items, were $140 million in 1Q18, below its guidance of $150 million–$160 million.
Transocean’s Cost Guidance for 1Q18 and 2018
In 4Q17, Transocean’s (RIG) costs increased. With a fall in revenue, Transocean’s drilling-to-revenue ratio rose to 66% in 4Q17 from 46% in 3Q17.
Transocean Has Highest Backlog of Its Peers
In an industry downturn, especially like the one offshore drillers are experiencing right now, it’s crucial to have a high backlog.
A Review of Floaters and Jack-Up Fleets for Offshore Drillers
Seadrill and Diamond Offshore have more than 20 floaters in their fleets. Ensco and Rowan Companies have more jack-ups in their fleets than peers have.
Analyzing US Crude Oil Production
In the week ending March 1, the US crude oil production was 12.1 MMbpd (million barrels per day)—a record level.
Transocean and Atwood Were Best Performers among Peers Last Week
In the week ending September 29, 2017, almost all of the offshore drilling stocks traded in the green.
Ranking the Top 5 Offshore Drillers by 2017 Market Returns
Even though all offshore drillers traded in the red this year, we’re still going to analyze the top five YTD returns of companies in the industry.
OPEC Could Pressure US Natural Gas Prices in 2018
US natural gas rigs rose 35% in the last 12 months, while US natural gas prices (UNG) fell 20% during this period.
Transocean’s Backlog Offers a Picture of 2017 and 2018 Revenues
As of February, 2017, Transocean (RIG) had a backlog of $11.3 billion compared with $12.2 billion at the end of 3Q16.
What Has Led to Rising Valuation Multiples of Offshore Drillers?
The average forward EV-to-EBITDA multiple for offshore drillers on March 22, 2016, was 6.26x, and the median multiple was 6.39x.
This Offshore Driller Has the Most Floaters and Jack-Up Rigs
Offshore (OIH) exploration and development wells are drilled with the use of rigs. Rigs come in various sizes and with various characteristics.
What Happened in September in the Offshore Drilling Space?
The offshore drilling industry experienced many events in the first half of September 2017. Seadrill (SDRL) filed for Chapter 11 bankruptcy.
Ensco’s Second-Quarter Cost Guidance
Ensco’s (ESV) drilling expenses were $325 million in the first quarter—up from $278 million in the first quarter of 2017.
The Word on the Street: What Analysts Recommend for Transocean after 1Q16
Of the 38 analysts covering Transocean, 5% have given it a “buy” recommendation, while 32% have given it a “hold,” and 63% have recommended a “sell.”
How Could Lower Production Impact Apache Corporation’s Revenues?
Excluding the effect of hedges, Apache Corporation’s (APA) average realized crude oil (USO) price in 4Q15 was $38.86 per barrel, down ~45% from $70.81 per barrel in 4Q14.
A must-know investor’s guide to off-shore driller Noble Corp. (NE)
Noble Corporation Plc. (NE) is one of the largest off-shore oil drilling companies in the world, owning the second-largest fleet of Mobile Offshore Drilling Units (or MODUs) in the industry.
Key Takeaways from Transocean’s 3Q15 Earnings and Conference Call
Transocean’s (RIG) revenue fell to $1.6 billion in 3Q15 from $1.8 billion in 2Q15. Its EBITDA also fell 13% to $655 million, from $755 million in the previous quarter.
US Oil Production Growth Might Slow Faster than Expected
The oil rig count could keep rising until at least March. By the second quarter, US crude oil production growth might slow down.
Why US Crude Oil Rig Counts Fell to a 2-Month Low
Baker Hughes (BHI) released its US crude oil rig count report on August 25, 2017. Baker Hughes reported that the US crude oil rig count fell by four or 0.5% to 759 between August 18 and August 25.
Ensco’s 4Q17 Earnings Compared to Transocean and Diamond Offshore
In 4Q17, Ensco’s EBITDA fell to $98.4 million from $149.5 million in 3Q17. The company’s EBITDA was 48% lower than its 4Q16 EBITDA of $190.0 million.
Weatherford International: Will US Rig Counts Affect the Stock?
Weatherford International’s (WFT) revenue share from North America rose in 3Q16 over 2Q16.
Energy Sector and Utilities Sector Supported the Market
After falling for two consecutive trading days to the lowest levels since the end of November, the energy sector rose on Wednesday.
Inside Rowan’s New JV with Saudi Aramco
Rowan Companies has agreed with Saudi Aramco to name the new joint venture ARO Drilling.
Transocean Secured New Contracts
As of July 25, 2017, Transocean (RIG) had a backlog of $10.2 billion—compared to $10.8 billion in April 2017.
Do Any Offshore Drillers Still Have a Strong Credit Rating?
Credit ratings can change over time as the industry outlook and the company changes. But investors should also remember that changes in credit ratings can lag the market.
Basic Material Stocks Top UK Stock Market, EWU Surges 2.31%
The UK private sector pay rose 4.4%, while the public sector rose 0.6%. This is anticipated to boost the consumer demand in the country.
What Do Transocean’s Capex and Liquidity Forecasts Tell Us?
In 1Q16, Transocean (RIG) had cash flow from operations of $631 million, which was lower than the $960 million it had in 4Q15.
Which Rig Type Has Been Performing Best for Transocean?
Transocean’s drilling revenue for 1Q16 was $1.34 billion, ~28% lower than the $1.85 billion in 4Q15 and 34% lower than the $2 billion in revenue in 1Q15.
A Look at Seadrill Partners’ Financial Health
As of December 31, 2015, Seadrill Partners has $3.9 billion in total debt on its balance sheet. Out of this, 8% (or $332 million) is in the form of short-term debt.
Analyst Recommendations for Transocean before 4Q17 Results
Of the 34 analysts covering Transocean, 44% recommend a “buy” or some equivalent for the stock, while 32% recommend a “hold.”
A Look at Transocean’s Recent Contracts
Fleet status report Transocean (RIG) released its quarterly fleet status update on February 9, 2017. Transocean’s backlog was $11.3 billion, compared with $12.2 billion in its October fleet status report. In this article, we’ll take a look at contract updates between these two report dates. Contract updates On December 31, 2016, Transocean’s newbuild ultra-deepwater drillship, […]
Atwood Oceanics, Noble Suffered the Most in This Area in 2Q16
The offshore drilling industry works on contracts that range from a few months to years. The contracts specify the timeframe and day rate awarded to a rig.
Why Are Offshore Rigs Going Steady?
The offshore rig count is nearly 56% off its four-year high of 66. It reached that level in August 2014. In the last year, the offshore rig count fell by 31.
Seadrill: Why No ‘Buy’ Recommendations?
Majority recommends “sell” Currently, 28 analysts give recommendations on Seadrill (SDRL). Of these, none have given a “buy” recommendation on the stock. Six analysts have given a “hold” recommendation, and 22 have a “sell” recommendation. The consensus target price is $1.78, which implies a downside of 17%. Like Seadrill, Ocean Rig (ORIG) does not have […]
Jefferies Revises Target Prices for Diamond Offshore, Noble
Article focus In this article, we’ll discuss analysts’ target price revisions for offshore drilling companies in Week 8 of 2018 (ended February 23). Revisions in Week 8 Jefferies revised its target prices for two offshore drillers. On February 21, 2018, it reduced the target price for Transocean (RIG) to $12 from 413 and maintained a […]
Counting the Years: Drillers Must Deal with Aging Rigs
Older vessels are less fuel efficient and are costly to maintain. Insurance rates also increase with a rig’s age, increasing operating costs.
Inside Rowan Companies’ 4Q17 Earnings Estimate
Analysts expect a fall in Rowan Companies’ (RDC) EBITDA (earnings before interest, tax, depreciation, and amortization).
Is President Trump Helping Crude Oil Bulls or Bears?
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.
Pemex Terminates the Contract on West Pegasus with Seadrill
On August 22, Seadrill reported that it received a contract termination notice for its contract with Pemex Exploration Servicios on the rig West Pegasus.
Highlights from Ensco’s July Fleet Status Report
Ensco (ESV) released its quarterly fleet status report on July 19. Ensco 8503 secured a 100-day contract with Talos Energy in the US Gulf of Mexico.
US Crude Oil Rigs Were Flat Last Week
Baker Hughes reported that US oil rig counts were flat at 738 on November 10–17, 2017. The rigs rose 63.3% from the same period in 2016.
Analyst Recommendations for Noble, Transocean, and Ensco
Approximately 29% of the analysts tracking Noble Corporation (NE) stock have recommended a “buy” or some equivalent as of December 13, 2017.
Here’s Why Upstream Underperformed the Energy Space
Between August 31 and September 7, upstream stock Southwestern Energy Company (SWN) fell the most on our list of energy stocks.
US Market Buoyant with Rise in Consumer Confidence
US consumer confidence rose unexpectedly for the month of September. The index rose to 103 in September from 101.3 in August.
US Natural Gas Rig Count Is near a 7-Month Low
Baker Hughes released its US natural gas rig count report on November 3, 2017. The rigs fell by three to 169 on October 27–November 3, 2017.
Seadrill’s Updates: Orderbook, Contracts, and World Fleet
In its 1Q16 report, Seadrill (SDRL) provided insights on the industry orderbook.
OPEC’s Crude Oil Production and Strategy Ahead of Its Meeting
A Bloomberg survey reported that that OPEC’s crude oil production increased by 484,000 bpd to 33.2 MMbpd in April 2016—compared to the previous month.
How Analysts Reacted to Ensco’s Acquisition
Analysts had mixed reactions to the offshore drilling industry’s first merger since the downturn started.
EVA Dimensions Upgrades Diamond Offshore
Recent updates EVA Dimensions upgraded Diamond Offshore (DO) to “overweight” from “hold” on September 13, 2016. Scotia Howard initiated coverage on Diamond Offshore on September 14. It gave a “sector perform” rating and a target price of $17. Scotia Howard also initiated coverage on offshore drillers (OIH) Rowan (RDC), Atwood Oceanics (ATW), Transocean (RIG), and […]
Understanding Ensco’s Capital Expenditure Plans
In the first three months of 2017, Ensco saw cash flows from operations of $104 million, as compared to $233 million in 1Q16.
Why US Natural Gas Traders Are Tracking OPEC’s Production
Baker Hughes, a GE company, released its weekly US natural gas rigs report on January 19, 2018. Natural gas rigs increased by two to 189 on January 12–19.
Will US Natural Gas Rig Count Test Previous High?
The US natural gas rig count rose by four to 171 rigs. Rigs were up 2.4% week-over-week and 96.6% year-over-year.
Analyzing Seadrill’s Stock Crash and Recent Events
Seadrill’s (SDRL) stock price fell more than 84% from the beginning of 2017 to May 18, 2017. The stock fell more than other offshore drillers.
Another Offshore Driller Applied for Bankruptcy
Pacific Drilling (PACD) filed for Chapter 11 bankruptcy protection in an aim to restructure roughly $3 billion in debt.
Analysts Revised Target Prices for RIG, RDC, and NE
In the week ending November 10, 2017, analysts revised target prices for Transocean (RIG), Rowan Companies (RDC), and Noble (NE).
Horizontal rig count is back on record breaking spree
For the week ending September 26, 2014, the number of horizontal rigs increased by six to 1,347—compared to 1,341 last week. This is the highest horizontal rig count on record.
Rowan Companies’ 1Q18 Cost Guidance
Rowan Companies’ (RDC) direct operating costs were $166 million in 4Q17—above the previous guidance of $150 million–$160 million.
Wells Fargo Upgrades Rowan Companies to ‘Outperform’
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 […]
Why Seadrill Stock Skyrocketed
Seadrill stock has skyrocketed. On May 17, the stock rose 26.1% and reached $0.58. The company’s volume increased to 69.3 million shares.
Analysts Love Ensco: A Closer Look
In this series, we’ll discuss analysts’ ratings and recommendations for offshore drillers.
US Natural Gas Rig Count at Its Highest since December 2015
From March 24–31, 2017, the natural gas rig count rose by five to 160 rigs. It was its highest level since December 31, 2015.
Will President Trump Boost the US Crude Oil Rig Count?
Baker Hughes released its weekly US crude oil rig count report on June 2. US crude oil rig counts rose by 11 to 733 between May 26, 2017, and June 2, 2017.