January 2017 EIA Estimates: US Shale Gas Production Could Fall
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.
Inside Schlumberger’s 1-Year Returns as of June 16
Schlumberger’s trailing-one-year stock price has fallen 12% as of June 16, 2017, while XLE, the broader energy industry ETF, has fallen 3%.
Why next quarter looks better for BHI’s international markets
In Latin America, BHI expects year-end product sales to increase. It also expects the offshore Mexico rig activity to increase.
Why improvement in Libya pushed down the crude price last week
For most of the last two years, WTI crude oil has been range-bound between ~$85 per barrel and ~$110 per barrel.
SLB, HAL, NOV, and BHGE: Comparing the Capex Growth
National Oilwell Varco’s (NOV) capital expenditure or capex fell ~32% in fiscal 2017—compared to its capex spend in fiscal 2016.
Returns for OFS Stocks with High and Low Implied Volatility
Schlumberger had the lowest implied volatility figures among all of the OFS companies on May 31, 2016. It has returned 9.4% on a YTD basis.
Must-know: Why US rigs lost the most in 11 months
The U.S. total rig count decreased by 17 rigs—from 1,913 to 1,896—during the week ending August 22. This marked the first rig count decline in the past five weeks. The decline was also the largest since late September 2013.
What Schlumberger Expects for 2017
What are Schlumberger’s views on North America? Schlumberger (SLB) expects the North American onshore market to continue to improve in 2017. In Schlumberger’s 1Q17 earnings press release, chairman and CEO Paal Kibsgaard stated that “at present, the region in the world showing clear signs of increased E&P[1.exploration and production] investments in 2017 is North America […]
Schlumberger’s 1-Year Returns on August 11
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%.
Must-know: Why oil rig counts have risen 2% in 2014 so far
U.S. land rig counts totaled 1,696 on February 21, 2014, compared to 1,692 the week prior. Over the medium term, rig counts have been relatively stable.
Wall Street Analysts’ Targets for SLB, HAL, NOV, and WFT
Approximately 90% of the analysts tracking Halliburton (HAL) recommended a “buy,” ~8% recommended a “hold,” and the rest recommended a “sell.”
Schlumberger: Do Analysts Expect the Stock to Rise?
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.”
Natural Gas Prices and Gas Rigs Move in the Same Direction
On Friday, June 5, Baker Hughes released the weekly natural gas rig count report. As expected, natural gas rigs fell by three to 222 for the week ending June 5.
Behind the scenes of the Halliburton-Baker Hughes merger
On October 13, Halliburton proposed to acquire Baker Hughes’ shares without prior notice. After receiving BHI’s counter proposal, Halliburton refused to increase its first value proposal.
The reason behind the 6% increase in the US rig counts this year
The U.S. rig counts dropped last week, but are still up significantly year-to-date and have increased by 103, or 6%.
What Put Pressure on the Energy Sector in February 2018?
The US energy sector was badly affected by the recent market sell-off in February 2018.
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.
Schlumberger’s Short Interest Has Fallen: What Does It Mean?
Short interest in Schlumberger (SLB) stock as a percentage of its float was ~1.2% on March 3, 2017, a marginal fall compared to December 30, 2016.
Why should investors pay attention to oil and gas rig counts?
Many parties in the energy industry and investing community monitor oil and gas rig counts as one measure of drilling activity.
Analyzing Schlumberger’s Stock Price Returns
From November 2013 to November 2016, Schlumberger’s (SLB) stock price was at its highest level in January 2014. It came close to that price in June 2014.
How Is SLB’s Current Valuation Compared to Peers?
Schlumberger’s forward PE (price-to-earnings) multiple reflects analysts’ expectation of lower earnings in the next four quarters.
Returns of Oilfield Services Stocks with High Implied Volatility
Tidewater (TDW) has the highest implied volatility among all of the OFS companies. The stock has fallen 65.1% on a YTD (year-to-date) basis.
Schlumberger’s North American operations drove growth in 4Q14
Schlumberger recorded topline and bottom-line growth in its North American operations due to continued efficiency improvements and new technology.
US Crude Oil Rig Count Fell for 4th Straight Week
Last week, Baker Hughes reported that the US crude oil rig count fell by one rig to 515 rigs for the week ending January 15, 2016.
Why Nabors Industries’ Stock Price Seems Bullish
Nabors Industries (NBR), one of the largest land-based drilling operators in the world, had a steady run in the stock market in 2016.
What Drove TechnipFMC’s Second-Quarter Earnings?
In the second quarter, TechnipFMC recorded total revenues of ~$2.96 billion, down 23% from ~$3.85 billion in Q2 2017.
Baker Hughes basics
Baker Hughes (BHI) is a leading supplier of oilfield services, products, technology, and systems to the worldwide oil and natural gas industry.
Which Oilfield Service Major Achieved Earnings Progress 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.
Why Schlumberger Foresees a Slowdown in 2016
We’ve already discussed Schlumberger Limited’s (SLB) fiscal 1Q16 revenues and earnings. We’ll now look into its performance by segment in fiscal 1Q16.
The must-know relationship between oil rigs and crude prices
The previous parts of this series (parts 8 and 9) explained the counterintuitive relationship between low natural gas prices, falling rigs, and rising natural gas production. Oil rigs have a simpler relationship with crude oil prices and oil production.
Why Halliburton’s Free Cash Flow Is Remarkable
Halliburton’s 3Q16 FCF improved significantly over the previous year. Its CFO rose significantly due to increased rig utilization in North America.
Why Halliburton’s Drilling and Evaluation segment did poorly in 4Q14
In 4Q14, revenues in the Drilling and Evaluation segment increased 6.5% to $3.29 billion from $3.09 billion recorded in 4Q13.
Why Schlumberger’s North American operations held ground
In 4Q14, Schlumberger’s revenues from its North American operations increased 18.5% to $4.32 billion.
Must-know: Why the US total rig count increased last week
U.S. total rig count increases by six The U.S. total drilling rig count increased by six rigs, from 1,883 to 1,889, during the week ending August 1 according to Baker Hughes, which publishes rig counts every week. The number of oil rigs increased by 11, while the number of natural gas rigs decreased by five. […]
Schlumberger: Analyzing Wall Street Forecasts Post–Q3 Earnings
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.
Crude Oil Rigs Could Fall More as the Bloodbath Continues
Baker Hughes will release the weekly crude oil rig count report on July 24, 2015. The crude oil rig count fell by seven to 638 for the week ending July 17.
Must-know: Halliburton’s 3Q14 earnings beat estimates
Between 3Q12 and 3Q14, HAL’s adjusted earnings per share (or EPS) has increased 78%. HAL has drawn the attention of Wall Street analysts to review the results and give their recommendations and target price.
Key Energy Industry Updates for May 30–June 2
Royal Dutch Shell (RDS.A) has started operations on the FPSO (Floating Production Storage Offloading) P-66 in the Lula South Field, Santos Basin, Brazil.
Schlumberger’s Q1 Earnings Are Expected to Fall 21%
Schlumberger (SLB) is scheduled to report its first-quarter earnings on April 18. Analysts’ consensus EPS estimate is $0.3 per share.
Weatherford International’s Value Drivers in 2Q17
Revenues from Weatherford International’s (WFT) Latin American region fell the most by 18.5% from 2Q16 to 2Q17.
Analyzing Halliburton’s Q4 Earnings
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.
Helmerich & Payne’s Q1 Results and 2019 Outlook
Helmerich & Payne reported its first-quarter results on January 29. The company reported an EPS of $0.17 for the quarter ending December 31.
How Schlumberger Reacted to Crude Oil’s Moves Last Week
In the week ending July 27, Schlumberger’s (SLB) correlation with crude oil was 0.48.
A quick snapshot of Schlumberger
Schlumberger, a Houston-based energy company, provides technology, integrated project management, and information solutions to oil and gas exploration and production companies.
Oil-Focused ETF Slides with Falling Inflation
With a 3.3% drop in energy prices, the producer price index is declining while energy-based stocks are falling. August’s PPI for final demand remains unchanged compared to 0.2% in July.
Wall Street’s Targets for SLB, HAL, KEG, NBR, and CLB
In this article, we’ll look at Wall Street’s targets for the OFS stocks that had the highest net debt-to-equity ratios in the first quarter.
Why did Highbridge Capital buy Tempur Sealy International?
Highbridge Capital Management, LLC is a multi-strategy alternative investment management firm founded by Glenn Russell Dubin and Henry Swieca in 1992. In late 2004, J.P. Morgan Asset Management purchased a majority interest in Highbridge, creating one of the first and most significant strategic alliances in the hedge fund industry. In July 2009, J.P. Morgan Asset […]
Finding Trends in Oilfield Services Companies’ Net Incomes
Many oilfield equipment and services (or OFS) companies witnessed stupendous rises in their net incomes from 2009 to 2014.
A Look at Schlumberger’s 1-Week Returns on March 2
Schlumberger’s (SLB) one-week returns were -1.5% through March 2. Since February 23, the Energy Select Sector SPDR ETF (XLE) fell 2.7%.
Helmerick & Payne: Analysts See 22% Upside Potential
The mean target price for Helmerich & Payne is $70.7, which implies an upside potential of ~22% from its current price.
What Analysts Expect from Baker Hughes’s 1Q17 Earnings
In 1Q17, analysts expect an adjusted loss of ~$0.19 per share for Baker Hughes (BHI), which is a 38% improvement over its adjusted loss of $0.30 per share in 4Q16.
Must-know: An overview of Baker Hughes
Baker Hughes Inc. (BHI) is based in Texas. It’s an energy company that operates in the oil and gas equipment and services industry. As of December 31, 2013, BHI operated in more than 80 countries.
Is Schlumberger’s Stock Price Showing Weakness?
On February 23, 2018, Schlumberger was trading at $66.50, which is ~17% lower than its price a year ago.
How Schlumberger Stock Has Performed in the Past Year
In this series, we will look at investors’ short interest in Schlumberger and SLB’s implied volatility.
How Much Will the International Rig Count Affect SPN’s Revenues in 4Q16?
In 3Q16, Superior Energy Services’ (SPN) revenue share generated outside the US fell to 25% of its total revenues, as compared to 27% in 2Q16.
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.
What Are Large Oilfield Companies’ Correlations with Crude Oil?
The correlation coefficient between Schlumberger’s stock price and crude oil prices from January 11, 2017, to January 11, 2018, was 0.47.
What Analysts Expect from Flotek Industries’ 3Q17 Earnings
In 3Q17, analysts expect Flotek Industries (FTK) to report adjusted earnings per share of $0.02. Wall Street expects FTK’s revenues to rise 1% over 2Q17 to $86.2 million.
Short Interest in SLB, HAL, WFT, and NOV after 2Q17
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.
How Deeply Leveraged Are Oilfield Services Companies?
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.
What Are Schlumberger’s SPM Project Plans?
In the past one year, SLB has performed nearly in line with the industry ETF and has hugely underperformed the broader market index.
Why Did Weatherford International’s Stock Price Jump?
Over the past one year, Weatherford International’s stock has fallen 18% as of February 1.
Horizontal rig count on top again in the US
Horizontal wells increase the length of the well that’s exposed to the reservoir. This increases production. In vertical drilling, a well goes straight down until it reaches the formation.
How the US Rig Count Affected SLB, HAL, and BHI in 1Q17
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.
Why Did Baker Hughes’s 4Q17 Earnings Beat Estimates?
Baker Hughes, a GE company (BHGE), released its 4Q17 and 2017 financial results on January 24, 2018. The company recorded total revenue of $5.8 billion in 4Q17.
A quick overview of oil and gas field services biz Schlumberger
Schlumberger Limited is a Houston-based energy company. It provides technology, integrated project management, and information solutions to oil and gas exploration and production (or E&P) companies around the world.
Halliburton Has Underperformed Its Peers in 2018—What’s Ahead?
Halliburton (HAL) stock has fallen ~18% in 2018, underperforming its sector peers. HAL stock fell significantly after its Q2 earnings.
How Upstream Operators’ Capex Could Affect NOV’s Margin in 2017
From 4Q15 to 4Q16, National Oilwell Varco’s (NOV) EBITDA margin crashed, dropping from 6.8% to -45.3% during this period.
Halliburton Recorded Strong Revenue Growth in 2017
Halliburton (HAL) registered the highest revenue growth in our group. Halliburton’s 2017 revenues increased 29.8% to $20.62 billion.
The major factors for oilfield service names like Halliburton
Oilfield service (or OFS) companies provide services such as drilling and completing wells, evaluating oil and gas reserves, maintaining wells, and offering other related goods and services.
Must-know: US energy sub-sectors during the global energy decline
There’s only one sector that didn’t decrease—master limited partnerships (or MLPs). MLPs are special corporate structures that pay most of their earnings as distributions to unit holders. MLPs usually have steady growth.
TechnipFMC’s Q2 2018 Earnings Missed the Estimates
TechnipFMC (FTI) released its second-quarter financial results on July 25 after the market closed. The company recorded operating revenues of $2.96 billion.
What Does Basic Energy Services’ Historical Valuation Suggest?
On March 31, 2017, Basic Energy Services’ (BAS) stock price had fallen 6% from December 30, 2016.
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.
What Do Analysts Expect from WFT’s 3Q16 Earnings?
In 3Q16, analysts expect a $0.25 adjusted loss per share for Weatherford International (WFT).
Schlumberger and Halliburton Compared to the Industry
By market capitalization, Schlumberger is the largest OFS company. Schlumberger’s stock price has declined 4% since May 3, 2017.
Will Rig Count Affect HP’s International Revenues in Fiscal 4Q16?
Helmerich & Payne’s (HP) international revenues decreased to 13% of its total revenues in fiscal 3Q16, compared to 17% in fiscal 3Q15.
Weatherford International: Will US Rig Counts Affect the Stock?
Weatherford International’s (WFT) revenue share from North America rose in 3Q16 over 2Q16.
Schlumberger Receives Contract from BP
On March 21, 2017, Schlumberger (SLB) announced that BP (BP) awarded SLB’s OneSubSea an engineering, procurement, and construction (or EPC) contract.
Weatherford International Issues Stocks Again
On November 16, Weatherford International (WFT), an oilfield equipment and services company, disclosed that it issued 84.5 million ordinary stocks.
Must-know: The oilfield services industry’s outlook in 2014
What have the Big Three oilfield service companies been saying about the outlook for 2014? The global economy is expected to continue to improve.
What Challenges Does Baker Hughes Face?
Baker Hughes (BHI) released its financial information for 1Q17 on April 25, 2017.
What Nabors Industries’ Historical Valuation Suggests
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.
How Schlumberger Did Last Week
In this series, we’ll look at Schlumberger and its correlation with crude oil.
Analyzing Schlumberger’s Growth Drivers in 1Q17
Schlumberger’s (SLB) Drilling segment witnessed the highest revenue fall of 20% in 1Q17—compared to 1Q16. Its Production segment fell ~8%.
Key highlights: Schlumberger drilling group’s 3Q14 performance
Revenues increased primarily on account of higher offshore activity in Mexico, Russia, and North America. Rig revenue from Saxon also attributed to the growth.
US leads oil production growth, but rig count advantage shrinks
US rig count comes down In this series, we’ve been discussing oil rigs and crude oil prices in the US. In this part of the series, we’ll talk about global rig count and global crude oil production. US versus world rig count According to Baker Hughes’ estimates, the US rig count currently exceeds the total […]
Will Strategic Alternatives Shape Flotek Industries in 2017?
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.
Halliburton Beat 1Q18 Earnings Estimates: Here’s Why
Halliburton released its 1Q18 financial results today. Here’s what you need to know.
How Halliburton’s Free Cash Flow Turned Around in 2Q17
Halliburton’s (HAL) cash from operating activities (or CFO) in 2Q17 was a huge improvement over 2Q16 as well as an increase over 1Q17.
The Effect of Rig Count on Weatherford International
In the past year, Weatherford International’s (WFT) revenue share from North America has risen to ~38.0% compared to 37.0% in 4Q16.
Saudi Aramco Deals Could Help Schlumberger Stock
On May 20, 2017, Schlumberger signed a memorandum of understanding with Saudi Arabia’s state-owned oil company Saudi Aramco.
What’s the Short Interest in Large OFS Companies on July 6?
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.
What Could Drive Schlumberger’s Performance in 1Q17 and Beyond?
Schlumberger’s (SLB) Drilling segment witnessed the highest revenue fall of 32% in 4Q16 compared to 3Q16.
How Do Large OFS Companies’ Valuations Stack Up?
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.
Schlumberger’s Earnings Drivers in 2Q17
Schlumberger’s revenues from North America staged a noteworthy recovery, rising 27% from 2Q16 to 2Q17.
Must-know: Comparing Baker Hughes and its peers
In 2014, Baker Hughes (BHI) outperformed the industry and broader market for most of the year. However, it’s currently underperforming the broader market index and its peers.
A Look at Flotek Industries’ Debt Position in 2Q17
In 2Q17, Flotek Industries’ (FTK) total debt fell ~34% compared to 2Q16.
Why It’s Important to Keep an Eye on India’s CPI Inflation
Though India’s CPI inflation has come down, certain risk factors could cause it to rise again.
Diving Deep into Schlumberger’s Management’s Views on 2017
Schlumberger’s (SLB) management expects its capital spending in the North American onshore market to improve in 2017.