Jun. 19, 2014, 12:26 PM
- Despite news that Atwood Oceanics (ATW +0.4%) found work for its semi-submersible Atwood Hunter for drilling off Equatorial Guinea, offshore drillers aren't enjoying the same boost they received yesterday from fleet updates provided by Ensco (ESV -0.6%) and Diamond Offshore (DO -0.6%).
- Cowen analysts view the contract as a positive since it fills a good portion of the gap in ATW’s remaining 2014 availability; should the Hunter option be exercised, the only rig in ATW’s fleet with 2014 availability is the jackup Atwood Mako, which completes a contract in November.
- Also today: SDRL -0.4%, RDC -0.1%, HP +0.8%, HERO +0.7%, NADL +1.4%, ORIG +0.4%, PACD -0.1%.
Jun. 18, 2014, 3:49 PM
- Ensco’s (ESV +0.3%) fleet status update released late yesterday said it had contracted one of its offshore drillers at a rate far above what anyone thought possible in the current weak market, but analysts still see a struggle ahead for offshore drillers and warn that recent share price strength won't continue.
- Cowen analysts say the $650K dayrate for the Ensco DS-8 ultra-deepwater newbuild drillship is well ahead of the expected low-$500Ks thanks to unique circumstances, but lower-spec ultra-deepwater assets are commanding dayrates as low as $350K with the current market weakness likely to last well into 2015.
- Still, the rally has pushed drillers' shares near their 200-day moving averages; today, DO +0.8%, SDRL +0.6%, HP +0.7%, ATW +0.1%, RDC -1%, HERO -2.2%.
Jun. 4, 2014, 1:34 PM
Apr. 24, 2014, 2:48 PM
- Helmerich & Payne (HP -6%) shares are sharply lower after Q1 earnings came in lower than expected and the company’s international land operations business unit posted disappointing results.
- Operating revenues in U.S. land operations totaled $742M (83% of total revenue), up 8.2% Y/Y; average rig revenue per operating day was ~$28K, down 0.8%, while average rig margin per day fell 1.4% to $14,957.
- International land operations recorded revenues of $85.5M, down 9.1% Y/Y; average daily rig revenue was ~$37K, down 8.8%, while rig margin per day was $10,918, down 1.2%.
- Signed multi-year deals with five E&P companies to build and operate nine additional FlexRigs to drill unconventional U.S. resource plays, bringing the total number of newbuild FlexRig commitments announced in FY 2014 to 44.
Apr. 24, 2014, 6:02 AM
Apr. 24, 2014, 12:05 AM
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Apr. 23, 2014, 5:30 PM
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Apr. 22, 2014, 5:15 PM
- Some S&P energy stocks set new 52-week highs today, including Hess (HES), EQT and Baker Hughes (BHI), as the sector begins to catch up to the hype about the U.S. energy renaissance.
- Analysts say oil and gas drillers are just starting to reap the benefits of an ancillary boom in energy-related technology and innovation; RBC Capital sees bullish prospects for rig companies, adding that drillers such as Helmerich & Payne (HP), Patterson-UTI (PTEN) and Nabors Industries (NBR) are best positioned to capitalize on the boom.
- BofA/Merrill's Stephen Suttmeier offers a technical set-up, seeing energy poised for a breakout similar to Oct. 2010, when the sector moved above its 13-, 26- and 40-week relative moving averages and outperformed for another six months.
- ETFs: XLE, ERX, OIH, VDE, ERY, FCG, XOP, DIG, DUG, GASL, FRAK, XES, IYE, IEO, IEZ, GASX, PXE, PXJ, PXI, PSCE, FENY, RYE, FXN, DDG
Mar. 7, 2014, 5:52 PM
- YPF says Q4 profit surged 88% to 1.9B Argentine pesos ($241M) on higher revenue from sales and production, beating analysts’ estimates.
- YPF also says it boosted crude production by 6.3% Y/Y while natural gas output rose 10.2%.
- YPF produces ~35% of Argentina's oil and gas and accounts for more than half of the fuel sold in the country.
- Earlier this week, YPF said it signed two contracts totaling ~$1.2B to lease 15 drilling rigs to develop Vaca Muerta, which contains an estimated 27B barrels of shale oil; Helmerich & Payne (HP) will provide 10 of the rigs.
Mar. 5, 2014, 10:38 AM
- Helmerich & Payne (HP +0.8%) says it secured drilling contracts with Argentina’s YPF for 10 rigs to be deployed in the country’s Vaca Muerta shale play.
- HP plans to deploy existing FlexRig rigs from the U.S. under five-year contracts, with the first rig expected to start operations in Q4 and full operation of all rigs by Q2 2015.
- The total value of the contracts is not disclosed, but HP says the award boosts its Argentina rig count to 19 units in “one of the most promising unconventional plays outside the U.S.”
Feb. 20, 2014, 12:44 PM
- Nabors Industries (NBR +3.4%) extends yesterday's big gains after posting strong Q4 results, and Morgan Stanley thinks shares can move a lot higher, upgrading NBR to Overweight from Equal Weight and raising its price target to $28 from $18.
- NBR has underperformed peers Helmerich & Payne (HP) and Patterson-UTI (PTEN) by ~25% since Q3 2013 on poor operational execution and a muddled corporate strategy, but Stanley sees signs that NBR's North America results have bottomed and execution has gained relative traction.
- The firm also expects operational streamlining to gain momentum over coming quarters and is encouraged by the appointment of a new CFO.
Feb. 19, 2014, 2:23 PM
- Nabors Industries (NBR +11%) surges to 52-week highs after reporting Q4 results that beat Wall Street expectations and offering an optimistic near-term outlook.
- “We believe we’ve seen the bottom” in the drilling rig market, CEO Tony Petrello said in today's earnings call, adding that rig rates increased modestly in Q4 but could rise higher this year.
- Daily rates for highly specialized walking rigs have begun to increase as more U.S. oil companies use multiwell drilling platforms, Petrello says; a turnaround in the drilling business could lift land drillers out of their earnings slump.
- NBR's fleet of ~150 pad-compatible walking rigs saw 94% utilization in the Q4, while demand for its older, mechanical rigs continues to lag behind.
- Most other deepwater drillers also are higher: PKD +2%, HP +1.7%, PDS +1.2%.
Feb. 6, 2014, 3:19 PM
- Recent bearish views on offshore drillers are forgotten for at least a day, as Diamond Offshore's (DO +2%) solid Q4 earnings and revenue beats help lift the entire sector.
- Cowen analysts especially like DO's increased dayrates: Q4 ultra-deepwater average dayrates rose to $350K/day from $284K, deepwater dayrates increased to $402K/day from $380K, and mid-water floater rates rose to $277K/day from $258K.
- However, Wunderlich notes that while the contracts and extensions are a positive, the low duration of the contracts may be the new norm for many of DO’s older lower specification rigs, which will translate to a lower backlog and less revenue visibility.
- ESV +3.4%, SDRL +2.1%, ATW +2.1%, RIG +2%, HP +2%, NBL +1.9%, RDC +1.9%, PKD +1.8%, HERO +1.3%.
Jan. 30, 2014, 2:25 PM
- In addition to issuing a strong set of FQ1 results, Helmerich & Payne (HP +2.1%) announces plans to build and operate nine new FlexRigs for oil and gas companies in the U.S.
- Overall, HP nailed down 35 new FlexRig commitments in the quarter, and its global fleet is expected to total 366 land rigs once the new builds are completed.
- HP now expects to spend ~$950M on capital expenditures during FY 2014, citing increasing demand.
- But HP warns that U.S. land rig rates are set to flatten in FQ2 with rig expenses rising; in the U.S. offshore segment, rig margins and revenue days are set to decline, while rig rates are set to come in flat with revenue days down In international land drilling.
Jan. 30, 2014, 6:04 AM
Jan. 30, 2014, 12:05 AM
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Helmerich & Payne Inc is engaged in contract drilling of oil & gas wells for others in the ownership, development & operation of commercial real estates. Its business comprises of three reportable segments: U.S. Land, Offshore & International Land.
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