- Newfield Exploration (NFX -5.1%) and EXCO Resources (XCO -6.4%) are the latest examples of oilfield services and equipment companies that have sold off despite reporting reasonably healthy quarterly results.
- NFX is sharply lower after Q2 earnings missed expectations but revenues beat estimates and rose 40% Y/Y; it even reported a deal for its Granite Wash assets that would bring in $588M.
- XCO also offered mixed Q2 results - a $0.01 earnings miss with a revenue beat - but said increased capex would not result in significant production volumes until 2015.
- Global Hunter - while also downgrading Natural Gas Services Group (NGS +0.3%) and Vantage Drilling (VTG +0.1%) - thinks the market is showing fatigue in the sector, particularly with positive onshore oil service data points that may no longer seem incremental.