Mon, Apr. 20, 5:35 PM
Mon, Apr. 13, 11:24 AM
- "No one (including us) has a really good handle on energy industry earnings estimates over the next few years," says J. Marshall Adkins and team at Raymond James, downgrading Cameron International (CAM -1%), Nabors Industries (NBR -0.3%), Schlumberger (SLB -0.8%), FMC Technologies (FTI -1.5%), and Basic Energy Services (BAS -6.6%).
- Nevertheless, Adkins gives it his best shot and his numbers are well below the Street for 2015 and 2016. Then there's valuations, and the recent surge in prices has left them less than compelling.
- Noted is substantial pricing pressur and overcapacity in many business lines, a more prolonged downturn internationally, and offshore activity not expected to see even a moderate uptick for several years.
- Source: Barron's
- Previously: Schlumberger slips as Raymond James heads to the sidelines (April 13)
- Previously: Raymond James throws in the towel on oil services (April 13)
Mon, Apr. 13, 8:48 AM
- Alongside its downgrade of Schlumberger, Raymond James cuts Basic Energy (NYSE:BAS), FMC Technologies (NYSE:FTI), and Cameron (NYSE:CAM) to Market Perform from Outperform.
- Nabors Industries (NYSE:NBR) is lowered to Outperform from Strong Buy.
- The OIH is up marginally YTD, but off more than 35% from last summer's high.
- Previously: Schlimberger slips as Raymond James heads to the sidelines (April 13)
Mon, Mar. 23, 8:59 AM
- Subsea equipment maker FMC Technologies (NYSE:FTI) and engineering firm Technip (OTCPK:TNHPF) agree to form a 50-50 joint venture which they say will be able to help oil companies reach their first barrels of offshore crude faster and cheaper.
- The companies say their Forsys Subsea venture will make it cheaper for oil companies to pursue petroleum buried deep under the ocean floor at a time when producers are seeing their profits squeezed by falling oil prices and construction costs that had risen in recent years.
Wed, Mar. 11, 10:13 AM
- FMC Technologies (FTI -2.1%) is downgraded to Underperform from Market Perform with a $31 price target, reduced from $50, at FBR Capital, which believes subsea technologies faces a broader and more severe multi-year retrenchment in customer spending on subsea trees and services than it had expected earlier; subsea represented 66% of FTI's 2014 revenues and 62% of EBITDA.
- FBR cuts its estimates for 2015 EPS to $2.48 from $3.12 and for 2015 EBITDA to $1.07B from $1.35B, as well as 2016 EPS to $1.91 from $3.03 and 2016 EBITDA to $854M from $1.32B.
Thu, Feb. 26, 6:38 PM
- Credit Suisse says the recent rally in oil prices and in oilfield services stocks (NYSEARCA:OIH) is a classic dead cat bounce, and that as soon as U.S. storage gets full - and it is close - crude prices will fall, bringing expectations and stocks down with it.
- The firm says its sector outlook is increasingly negative as companies report increased pricing pressure, a record drop in the activity barometer of the rig count, and offshore rigs and projects confronting headwinds that could take a couple of years to fix.
- Relevant stocks: SLB, HAL, BHI, CAM, HLX, SPN, NOV, FET, DRQ, FTI, OIS
Thu, Feb. 12, 12:27 PM
- FMC Technologies (FTI -3.1%) suffers two analyst downgrades - to Neutral from Buy at Citigroup and to Underperform from Neutral at Credit Suisse - after reporting mixed Q4 results and a 10% workforce reduction.
- The analysts say FTI's revenue is coming down more than expected even while management expects resilience in subsea margins during 2015; FTI also declined to outline an expected subsea order range for 2015, and found management unpersuasive that subsea hardware bookings are entering a structural as opposed to cyclical decline against a backdrop of lower oil prices.
Wed, Feb. 11, 9:39 AM
- FMC Technologies (FTI +2.4%) will cut nearly 2,000 jobs in an attempt to reduce costs in the weak oil market, CEO John Gremp said in today's earnings conference call.
- Most of the 10% company-wide job cut will come from North America, the CEO said; FTI had 19.3K employees around the world, with 12,850 in the U.S. at the end of 2013.
- Earlier: FMC Technologies EPS of $0.72.
Tue, Feb. 10, 4:05 PM
Mon, Feb. 9, 5:35 PM
Mon, Feb. 2, 6:55 PM
- Jefferies downgrades nine oil services stocks (NYSEARCA:OIH), noting there is still “material downside” to consensus estimates from lower oil prices.
- Despite its medium-term negative view on oil, Jefferies adds that it expects oil prices to start to recover in 2015 with prices rising to levels that support oil services in 2016; yet the firm does not expect the sector to recover quickly, and sees deepwater drilling particularly sluggish on high costs and “flat-to-modestly-lower activity.”
- Downgraded to Underperform: FTI, NBR, PTEN, RIG.
- Downgraded to Hold: CAM, PES, PDS, SLCA, FMSA.
Fri, Jan. 9, 7:55 AM
- Oil and gas companies could cut E&P spending in North America by 30% or more this year if U.S. crude oil prices continue to trade at $50-$60/bbl, Barclays estimates on the basis of a survey of 225 oil and gas companies.
- The firm expects U.S. onshore rig count to fall by 500 rigs over the year to ~1,250 rigs by the end of 2015.
- Barclays says this is only the seventh time in the 30-year history of its survey that global spending is estimated to fall, adding that spending rose by more than 10% the following year after almost every decline.
- In the oilfield services group (NYSEARCA:OIH), the firm initiates Halliburton (NYSE:HAL), Baker Hughes (NYSE:BHI), National Oilwell Varco (NYSE:NOV) and FMC Tech (NYSE:FTI) at Overweight, and Forum Energy Tech (NYSE:FET) and Dril-Quip (NYSE:DRQ) at Underweight; Schlumberger (NYSE:SLB), Cameron (NYSE:CAM), Weatherford (NYSE:WFT) and Superior Energy (NYSE:SPN) are started at Equal Weight.
- ETFs: XLE, ERX, VDE, XOP, ERY, DIG, DUG, IYE, XES, IEO, IEZ, PXE, FENY, PXJ, RYE, FXN, DDG
Tue, Jan. 6, 10:37 AM
- Citigroup analyst Scott Gruber says now could be time for longer-term investors to bulk up on oil services stocks (NYSEARCA:OIH), taking the contrarian view that falling capital spending forecasts and looming bankruptcies by some E&P companies could portend that the industry’s shakeout is closer at hand.
- Meanwhile, Gruber says oil services stocks tend to stop falling as oil reaches "unsustainably low” levels, and investors appear to be through much of their selling since valuations have fallen so low.
- Oil services companies generally have been hit twice as hard as integrated oil majors during the past three months; related tickers include SLB, HAL, NOV, BHI, CAM, ESV, FTI, HP, TS, OII.
Dec. 19, 2014, 8:29 AM
- FMC Technologies (NYSE:FTI) wins an order from Eni (NYSE:E) to supply subsea production systems for the Italian company's deepwater Block 15/06 East Hub development off Angola.
- The order has an estimated value of $393M in revenue.
- Earlier this week, FTI received an order worth $268M from Chevron to provide susbea equipment for the Agbami field off Nigeria.
Dec. 18, 2014, 9:59 AM
- RBC recommends increasing weightings and exposure to oil service stocks (OIH +2.5%) heading into 2015, as it says oil prices will start to improve in H2 of next year and that oil service stocks typically discount this move by 6-9 months.
- Down cycles such as 2000-02 and 2008-09 suggest North American land drillers and service companies provide the best returns off business cycle lows, RBC says as it expects a similar dynamic this time.
- RBC upgrades Key Energy (KEG +24.6%) and Superior Energy (SPN +7.5%) to Outperform, and downgrades FMC Tech (FTI +1.8%), Franks (FI +4.9%), Oceaneering (OII +0.2%) and Oil States (OIS +2.3%) to Sector Perform; the firm also says since 1985 three of the top five performing stocks off lows have been Patterson-UTI (PTEN +6.6%), Precision Drilling (PDS +4%) and Nabors (NBR +7.2%).
Dec. 17, 2014, 9:53 AM
- FMC Technologies (FTI +2.3%) says it has won a $268M subsea systems contract for the Chevron-led (NYSE:CVX) Agbami deepwater project offshore Nigeria.
- FTI says it has supported the Agbami field development for several years, and the new subsea equipment agreement will provide additional production and help extend the life of the project.
FMC Technologies Inc is a provider of technology solutions for the energy industry. It designs, manufactures and services subsea production and processing systems, surface wellhead production systems, measurement solutions and marine loading systems.
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