Nabors Industries Ltd.NYSE
Tue, Dec. 6, 3:49 PM
- Oilfield services stocks Core Laboratories (CLB +0.8%), Helmerich & Payne (HP -1.5%), National Oilwell Varco (NOV +1.4%), Patterson-UTI Energy (PTEN -0.4%) and RPC (RES -1.1%) are downgraded to Neutral from Buy at Guggenheim, which believes investors will be more valuation sensitive following the recent run in oil stocks.
- The firm says all five stocks have less than 5% upside to its most recent 12-month price targets based on 2018 EV/EBITDA multiples - and its 2018 EBITDA estimates average below 50% of the 2014 peak - it sees little room for upside to EBITDA or multiples over the next several quarters.
- Guggenheim says the downgrades are more tactical than structural, reflecting upper limits of valuation ranges and not an incrementally adverse change in industry or company fundamentals.
- The firm's Buy-rated favorites include Nabors Industries (NBR -2.2%), which it calls its “Best Idea."
Wed, Nov. 30, 3:28 PM
- Stephens analysts say “structurally oversupplied crude markets will take more time to balance” even with an OPEC production cut, which makes them reiterate support for their top six picks among oil services stocks: Baker Hughes (BHI +6.4%), Nabors Industries (NBR +22.8%), Schlumberger (SLB +5.2%), Oceaneering International (OII +6.8%), Superior Energy Services (SPN +17.8%) and Flotek Industries (FTK +13.6%).
- The firm says the companies "tend to have market leadership, stable balance sheets and/or cash flows, differentiated/diverse products or services or product line leadership.”
- Stephens says a production cut and follow-through could justify its base case to high case range for oil averaging $52/bbl in 2017 and $54/bbl in 2018, with low and high cases ~$10/bbl higher or lower in each year.
Wed, Nov. 30, 9:23 AM
- Gainers: SCON +71%. CRC +32%. ORIG +16%. DNR +16%. GST +16%. OAS +17%. LEI +16%. WTI +14%. SM +13%. AREX +13%. SN +13%. CPE +13%. SDRL +13%. CIE +13%. HHS +13%. SGY +13%. LPI +12%. SYRG +12%. WLL +11%. ATW +11%. GTE +11%. CLR +11%. WPX +11%. ESV +11%. NE +10%. CRZO +10%. DO +10%. NBR +10%. BTE +10%. MRO +10%.
- Losers: ARWR -61%. CERC -47%. CMRE -14%. AEO -10%. GLBS -9%.
Mon, Oct. 31, 10:59 AM
- Nabors Industries (NBR -1%) agrees to form a joint venture with Saudi Aramco to own, manage and operate onshore drilling rigs, a move mirroring efforts across the industry to use partnerships to better manage operations through the oil price downturn.
- Financial details are not disclosed, but the companies expect to form the 50-50 JV and launch operations in Q2 2017.
- NBR says the JV will leverage its established business in Saudi Arabia to begin operations, with a focus on Saudi's existing and future onshore oil and gas fields; NBR and Aramco each will contribute land rigs to the JV in the first years of operation along with capital commitments toward future onshore drilling rigs which will be manufactured in Saudi Arabia.
Tue, Oct. 25, 6:05 PM
Mon, Oct. 24, 5:35 PM
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Thu, Sep. 15, 3:33 PM
- Nabors Industries (NBR +3.8%) enjoys strong gains as DA Davidson initiates coverage of the stock with a Buy rating and $16 price target, as the firm believes NBR has sufficient liquidity to maintain its dividend and that any concerns over debt are overdone.
- NBR maintains has the largest global land drilling fleet, with nearly half of its revenues coming from international activity, which the firm says tends to be more stable than North American markets as customers and drilling programs are significantly larger.
Fri, Sep. 9, 9:31 AM
Tue, Aug. 2, 5:30 PM
Mon, Aug. 1, 5:35 PM
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Tue, Jul. 12, 11:30 AM
- Six oil services stocks - Flotek Industries (NYSE:FTK), Schlumberger (SLB +4.4%), Halliburton (HAL +4%), Oceaneering (OII +6%), Superior Energy Services (SPN +5.5%) and Rowan (RDC +8.1%) - should do well regardless of the price of oil, Stephens analyst Matthew Marietta says.
- The past 18 months have proven that trying to predict specific commodity prices is a guessing game, Marietta says, but he thinks that a global ratio of reserves to annual production levels at an all-time high, coupled with global equipment overcapacity and cost deflation "has the potential to create a price environment range-bound in line with our sensitivities."
- Stephens also upgrades RDC and Nabors Industries (NBR +9.8%) to Overweight from Equal Weight.
Wed, Jun. 15, 6:56 PM
- For the fourth consecutive year, three Nabors Industries (NYSE:NBR) directors failed to achieve 50% support of shareholders in a June 7 election, and the directors tendered their resignations but the board voted unanimously to reject the resignations, an SEC filing reveals.
- Shareholders have withheld a majority of votes from director John Yearwood at NBR’s last four annual meetings, and the responsibility to accept his resignation lies with the company's governance and nominating committee, but Yearwood heads the committee, and the committee’s other members are the other two directors who were voted out last week.
- However, “zombie directors” are fairly common in instances where investors try to oust board members without offering replacements, according to the Council of Institutional Investors, which says 38 of 43 directors of Russell 3000 companies that failed to win majorities last year wound up staying.
Wed, Jun. 1, 3:54 PM
- Land-based oil drillers "all look overvalued," Credit Suisse analysts say as they downgrade Helmerich & Payne (HP -2.1%), Patterson-UTI Energy (PTEN -2%) and Precision Drilling (PDS -4.6%) to Underperform from Neutral, and Nabors Industries (NBR -3.8%) to Neutral from Outperform, predicting current spot rates likely will fall when incremental rigs go to work.
- Among the group, the firm sees HP as "the worst offender" on valuation, with overly optimistic assumptions for $35K spot market dayrates and forgiveness of deferred tax liabilities still not enough to justify the current price based on its rig count, while NBR is "the relative winner due to its international exposure."
- The firm prefers Baker Hughes (BHI +0.1%) and Halliburton (HAL -0.1%) in the sector due to their North American exposure and expectations of execution, while Schlumberger (SLB -0.6%) "has valuation headwinds and issues with exploration, deepwater and international exposure, but longer-term exposure to the stock is essential."
- Now read Moody's: Drillers will be the last to recover in the oil patch (May 16)
Mon, May 23, 3:54 PM
- Schlumberger (SLB +0.1%) is not the only oil services stock Goldman Sachs is touting, as the firm also awards Buy ratings to Halliburton (HAL +1.4%) and Nabors Industries (NBR -0.9%) for their cyclical exposure to the U.S. onshore market.
- Goldman's commodities and E&P teams say they now see a clearer path for oil production growth in 2017-18, driven by the market becoming balanced by H2 2016 and demand continuing to grow at a healthy pace, with U.S. onshore and Mideast OPEC as the lead drivers of the production growth.
- The firm likes HAL, SLB and NBR for their cyclical exposure to the U.S. onshore market, and all three have exposure to the Saudi market; HAL and SLB also offer very high leverage to the drilling and uncompleted wells inventory, which sits low on the cost curve and should be the first wells where activity should pick up.
Tue, Apr. 26, 3:58 PM
- Nabors Industries (NBR -9.8%) sinks ~10% after reporting a narrower than expected Q1 loss but total revenues that fell 70% Y/Y and fell far short of analyst expectations.
- Adjusted earnings excluded $1.12/share of impairments from its investment in C&J Energy Services (CJES -2.4%); NBR owns 53% of CJES after selling its completion and production services business to the pressure pump operator in 2014.
- NBR says its current rig count fell to 54, matching its forecast in the mid-50s, and CFO William Restrepo warns that the company expects further near-term reductions in rig counts both internationally and in the U.S. despite the recent upturn in oil prices, and expects margins to deteriorate.
- NBR bounced slightly off its lows of the day after Morgan Stanley's Ole Storer maintained an Overweight rating in the stock with a $17 price target, saying today's selloff was unwarranted; Storer says NBR's international fleet build-out and its continued efforts to improve its marketing of technology position it well for a market recovery, adding that the company's balance sheet looks stable with neutral free cash flow at the current cyclical trough.
- Now read Beware offshore drillers rising too far too fast, analyst says
Mon, Apr. 25, 5:39 PM