Oilfield services firms eye busy Q2 on pent-up demand, Sterne Agee says

|By:, SA News Editor

Halliburton (HAL +2.5%), Schlumberger (SLB +1.4%) and other oilfield services companies should see a busy Q2 due to pent-up demand following a wintry Q1, leading to a solid rise in Q2 and Q3 demand for completion services, including pressure pumping, coiled tubing and proppants, according to a report from Sterne Agee.

The firm bases its outlook on reports of lower well counts during Q1, including a 2.5% sequential decline in well counts reported by Baker Hughes (BHI +1.7%); "this highlights our belief that wells per rig would drop in Q1 due to weather disruptions, and likely leads to a sharp rise in Q2 well completions."