Seeking Alpha

Global Hunter downgrades quintet of oilfield services stocks

Onshore-focused oil service companies have been strong stock gainers YTD, but Global Hunter thinks it's prudent to take some chips off the table as it downgrades Halliburton (HAL -2.9%), Pioneer Energy (PES -5.3%), Key Energy (KEG -4.2%), Basic Energy (BAS -1.7%) and Superior Energy (SPN -2.5%) to Neutral (

The firm sees activity up next year, but believes expectations of 10%-plus D&C capex growth and 20%-plus EBIT improvement on ~40% incremental margins for the group has set a high bar, particularly when pricing is unlikely to move back in favor and given its belief the rate of change to Street numbers likely has a bias lower.

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Comments (1)
  • Blue22
    , contributor
    Comments (413) | Send Message
    I would like to see some justification that beating down PES is based on any reality in facts. Keep shorting the supply companies with winter coming on and screwing the refineries and we'll all be paying big bucks for all petroleum products, especially gas!
    21 Nov 2013, 10:46 AM Reply Like
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