Nabors Industries - Making Big Moves For The Future Drilling Of Profits
Nabors Industries: An Activist Led Turnaround Is Underway
Dec. 16, 2015, 12:29 PM
- Nabors Industries (NBR -0.2%) is downgraded to Hold from Buy at Argus, believing NBR will take longer to recover than earlier expected, which would prolong the company's subpar revenue and profit performance.
- While Argus says its forecast for lower crude oil prices for the remainder of 2015 and into 2016 is not a new development, it has become more concerned that the recovery will take longer to develop.
- The firm says it applauds NBR's success in cutting costs and raising additional liquidity through its recent partial-stake sale of its completion and production services businesses, and believes NBR's relatively higher mix of earnings from international operations should aid in mitigating the sharp decline in U.S. earnings.
Dec. 11, 2015, 11:46 AM
- Investors should buy oil services stocks with exposure to onshore oil production on weakness going forward, Citi analyst Scott Gruber says in "a deliberately early call."
- Onshore oil businesses are set to recover because OPEC does not appear able to meet global demand after 2016, Gruber says, adding that the rally in the companies likely will be "powerful" when it arrives.
- Gruber continues to name Halliburton (HAL -1.7%) and Baker Hughes (BHI -4.7%) as his top picks, but he also believes small and mid-cap names in the sector will rally; he upgrades C&J Energy (CJES -4.8%), Nabors Industries (NBR -3.2%), Patterson-UTI (PTEN -2.2%), Superior Energy (SPN -3.8%) and Weatherford (WFT -6.2%) to Buy from Hold, and raises Helmerich & Payne (HP -2%) and National Oilwell Varco (NOV -1.4%) to Neutral from Sell.
Nov. 30, 2015, 2:23 PM
- The "lower for longer" consensus on crude oil prices is overly conservative, and prices will begin bouncing back next year, Guggenheim analysts say as they upgrade the oil services sector to Buy and see plenty of upside for the major players given current market conditions.
- Guggenheim is calling for oil prices to return to $100/bbl by 2018, and sees 10% upside across the board for oil services stocks in the next year resulting from the group's unique exposure to crude prices.
- Within the group, the firm prefers Rowan (RDC +1.8%) and Atwood Oceanics (ATW +1.6%), as their backlogs should help reduce near-term risk, RDC has no newbuild commitments and ATW is finalizing a contract in Brazil for one of its two uncontracted rigs, utilization in the Middle East (NYSE:RDC) and Australia (NYSE:ATW) should be resilient on a relative basis, and both have fleets that make them more interesting M&A candidates.
- Upgraded to Buy from Neutral: CAM, RIG, NE, OII, PACD, DO, ESV, CLB, OIS, HP, NBR, CRR, NOV, DRQ, FI, PTEN, SSE, FTI, CJES, FET, SPN.
Nov. 11, 2015, 5:53 PM
- UBS oil services analyst Angie Sedita cautions that 2016 will remain difficult in the industry, especially for offshore drillers, but she awards Buy ratings to three leading land drillers, noting that pricing weakness will remain a struggle but that land drillers typically lead the sector off the bottom.
- The firm says Helmerich & Payne (NYSE:HP), Nabors Industries (NYSE:NBR) and Patterson-UTI Energy (NASDAQ:PTEN) have the potential to bring patient investors solid returns in 2016 and beyond.
- None of the offshore drillers gain Buy ratings from Sedita and her team.
Oct. 28, 2015, 2:38 PM
- Nabors Industries (NBR +2.2%) is higher after posting a Q3 loss in line with analyst expectations and saying it will continue cutting costs to meet its minimum goal of breakeven free cash flow.
- Weak prices eventually will chip away at the global glut of crude oil, which should prod prices higher again, but oil companies are not yet convinced the market has rebounded enough to drill again, CEO Tony Petrello said in today's earnings conference call.
- To offset the declining demand for its rigs, NBR is trying to protect its balance sheet by cutting costs and headcount, and squeezing suppliers for deeper discounts, and the company says it plans to implement additional cost-cutting measures in Q4.
- NBR currently has 81 rigs operating in the U.S. oil patch, and Petrello expects that number to slip into the mid-70s in Q4.
- While other oilfield services companies and equipment suppliers say they are looking at potential mergers and acquisitions, Petrello says NBR has not yet seen a deal worth making.
Oct. 27, 2015, 4:27 PM
- Nabors (NYSE:NBR): Q3 EPS of -$0.14 in-line.
- Revenue of $812.4M (-55.1% Y/Y) beats by $45.7M.
Oct. 26, 2015, 5:35 PM
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Oct. 8, 2015, 10:33 AM
Sep. 15, 2015, 12:18 PM
- Citi analyst Scott Gruber reiterates his cautious view on the oil services sector (NYSEARCA:OIH) as it “digests the likelihood of domestic E&P spending declining 15%-20% next year, driving activity lower and maintaining pressure on rates.”
- Gruber now sees a better than 30% drop In the average cost of a U.S. shale well in 2015 and another 5%-10% drop in 2016 compared to the forecast he made in March of a 20%-25% drop in 2015 and another 2%-3% decline next year.
- The analyst sees a need for “material negative revisions” across the universe of mid- and small-cap oil services stocks he covers, including Superior Energy (NYSE:SPN), RPC (NYSE:RES), Patterson-UTI (NASDAQ:PTEN), Nabors Industries (NYSE:NBR), C&J Energy (NYSE:CJES) and Aspen Aerogels (NYSE:ASPN).
- Gruber recommends taking advantage of negative sentiment to buy “premiere franchises” Schulmberger (NYSE:SLB) and Halliburton (NYSE:HAL).
Sep. 14, 2015, 5:15 PM
- GE has made offers in recent weeks for parts of the drilling services and drilling bits businesses Halliburton (NYSE:HAL) is selling to win regulatory approval to buy Baker Hughes (NYSE:BHI), Bloomberg reports.
- Weatherford (NYSE:WFT) and Nabors Industries (NYSE:NBR) also are bidding for the services entity, which is part of HAL's Sperry Drilling arm, according to the report; a number of P-E firms and industrial companies also are said to be bidding for the businesses.
- HAL said last week it was selling the units separately and considering bids from “a variety of interested parties” after the NY Post reported the Justice Department could force it to sell the assets to a single buyer.
- Final offers for both units are due within four weeks, Bloomberg says.
Aug. 4, 2015, 7:31 PM
- Nabors Industries (NYSE:NBR) says it expects a decrease in Q3 results as current depressed market conditions likely will prevail for an extended period.
- Q2 results, "while down significantly [Y/Y], were better than we had anticipated," Chairman/CEO Anthony Petrello says, adding that NBR expects another decline in Q3 but that the quarter may "represent the bottom in most areas outside of the U.S. Lower 48," as international rig startups and Q4 seasonal upticks in Alaska and Canada should "mitigate some of the impact of further pricing erosion in the U.S."
- NBR says it expects the North American market to remain depressed for a long time; total Q2 revenue fell 47% Y/Y to $863M, with revenue from the company's drilling operations in the U.S. falling ~40%.
Aug. 4, 2015, 5:05 PM
- Nabors (NYSE:NBR): Q2 EPS of $0.09 beats by $0.18.
- Revenue of $863.3M (-46.7% Y/Y) beats by $64.13M.
Jul. 9, 2015, 3:26 PM
- The tide is finally starting to turn for global oil services stocks (NYSEARCA:OIH), Morgan Stanley says, now seeing a very favorable risk/reward balance for investors and up to 60% upside in the space over the next 6-9 months with only ~10% downside risk.
- The firm says it begins to see signs that global oil production is getting under control, as U.S. rig counts appear to have stabilized well below the level necessary to sustain production and Brazil production was recently revised well below consensus expectations.
- Stanley's top pick in the group is Schlumberger (SLB +1.1%), and it also likes Core Labs (CLB +2.2%), Frank's International (FI +1.5%), Patterson-UTI (PTEN +2.7%), Nabors Industries (NBR +4%) and Helmerich & Payne (HP +1.9%).
Jun. 19, 2015, 4:58 PM
- Patterson-UTI Energy (NASDAQ:PTEN), Precision Drilling (NYSE:PDS) and Nabors Industries (NYSE:NBR) are the best bets among oilfield services stocks, RBC analysts say.
- The firm says its initial 2017 EPS estimates for North American land drillers are generally higher than consensus, and believes the Street underestimates the magnitude of the North American recovery and that valuations are reasonable "when looking through the near term noise."
- RBC says land drillers consistently have been among the top performers in every oil cycle rebound dating back to 1997-98, driven primarily by U.S. E&P spending, which has the highest velocity once oil starts to recover; NBR, PTEN and PDS have averaged among the top five performing sector stocks coming off crude oil troughs, the firm says.
Jun. 8, 2015, 8:45 PM
- Nabors Industries (NYSE:NBR) discloses that it will extend salary reductions for two top executives by another six months in a cost-cutting move that reflects "current industry conditions."
- The reduction in CEO Anthony Petrello's base salary was cut 10% for a six-month period starting Jan. 1, and the new six-month extension will lower his annual rate to $1.575M from $1.75M; CFO William Restrepo’s base salary rate is reduced to $585K from $650K.
- NBR says it won shareholder support in a say-on-pay vote after a string of four negative votes during 2011-14; also, four board members tendered resignations after failing to receive a majority of shareholder votes, but NBR did not accept the resignations, saying that stepping down was not in the company’s best interest.
May 27, 2015, 7:17 PM
- Tutor Perini (NYSE:TPC) again fails to gain majority shareholder support on its executive pay packages, becoming the first company to fail the advisory vote five years in a row.
- Only 35% of shareholders supported TPC’s pay packages this year, down from 44% last year.
- Executive pay packages for CEO Ronald Tutor have come under fire as investors questioned such practices as Tutor’s pledging millions of shares for a collateral line of credit, and a compensation package that included $800K of personal use on the company’s jet; Tutor owns 19.6% of TPC’s shares.
- Also, Michael Klein, lead independent director and head of the audit committee and corporate governance committee, was re-elected to the board with a bare majority of votes cast by shareholders.
- Oil driller Nabors Industries (NYSE:NBR), the only other company to fail the vote four years running, holds its shareholder meeting next week.
Nabors Industries Ltd. provides offshore platform work over and drilling rigs and manufactures top drives for a broad range of drilling applications, directional drilling systems, rig instrumentation and data collection equipment, pipeline handling equipment and rig reporting software. The... More
Sector: Basic Materials
Industry: Oil & Gas Drilling & Exploration
Country: United States
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