Fri, Jul. 17, 11:32 AM
- Offshore drillers are significantly underperforming the broader market following cautious commentary from Schlumberger (SLB -0.1%) despite its Q2 earnings beat, a contract termination and an analyst downgrade.
- On its earnings call this morning, SLB said it expects little improvement in pricing levels in the near future and declines in activity for offshore drillers, while land rigs provide a more attractive opportunity and better margins.
- For its Q3, SLB foresees a further 5%-6% decline in Q/Q revenue as well as lower EPS, and says the $0.77 consensus is a realistic number.
- Yesterday, ConocoPhillips (COP -1.8%) said it plans to cut future deepwater exploration spending, particularly in its operated Gulf of Mexico program; in light of the decision, COP is terminating a contract for an Ensco (ESV -4.9%) deepwater drill ship.
- Also, UBS today downgraded National Oilwell Varco (NOV -1.5%) to Sell from Neutral.
- SDRL -6.4%, RIG -4.7%, RDC -6%, DO -3.3%, ATW -4.2%, HP -1.2%, PTEN -1.2%, PACD -5.7%.
Wed, Jun. 17, 7:48 AM
- National Oilwell Varco (NYSE:NOV) says it will cut 1,500 jobs from its Norwegian workforce, or a bit less than a third of its staff there, by the end of this year as low oil prices have led to reduced spending by oil companies and lower sales of new equipment; 900 permanent jobs and 600 contract workers will be cut.
- Statoil, Norway’s dominant oil company, said yesterday that it would cut up to 1,500 permanent positions and 525 consultants from a total Norwegian workforce of more than 20K.
- NOV's Norwegian arm contributed ~4% of the company’s $21.4B in total revenue last year.
Thu, May 21, 9:30 AM
- Alongside Goldman's list of 50 stocks appearing most as top holdings at hedge funds is its list of the 50 top shorts.
- New additions this quarter: Baxter Intl (NYSE:BAX), UPS, Marriott (NASDAQ:MAR), NextEra (NYSE:NEE), Ford (NYSE:F), National Oilwell Varco (NYSE:NOV), McDonald's (NYSE:MCD), M&T Bank (NYSE:MTB), CenturyLink (NYSE:CTL), Amgen (NASDAQ:AMGN), Pioneer Natural (NYSE:PXD), Duke Energy (NYSE:DUK), Seagate (NASDAQ:STX), AbbVie (NYSE:ABBV), Cisco (NASDAQ:CSCO).
- The full list (in order of $ value of short interest): AT&T (NYSE:T), Disney (NYSE:DIS), IBM, Verizon (NYSE:VZ), Intel (NASDAQ:INTC), Kinder Morgan (NYSE:KMI), Exxon (NYSE:XOM), Pfizer (NYSE:PFE), J&J (NYSE:JNJ), Deere (NYSE:DE), Caterpillar (NYSE:CAT), Exelon (NYSE:EXC), GE, Boeing (NYSE:BA), Halliburton (NYSE:HAL), Fox (NASDAQ:FOXA), Comcast (NASDAQ:CMCSA), UTX, Regeneron (NASDAQ:REGN), Merck (NYSE:MRK), salesforce.com (NYSE:CRM), AbbVie (ABBV), Conoco (NYSE:COP), Wal-Mart (NYSE:WMT), Eli Lilly (NYSE:LLY), Celgene (NASDAQ:CELG), Schlumberger (NYSE:SLB), AutoZone (NYSE:AZO), Wells Fargo (NYSE:WFC), Emerson (NYSE:EMR), McDonald's (MCD), Reynolds (NYSE:RAI), Target (NYSE:TGT), Accenture (NYSE:ACN), Coca-Cola (NYSE:KO).
Mon, May 18, 3:03 PM
- Goldman's sees the S&P 500 hitting a mid-year high of 2,150 by mid-year, but fading to 2,100 by year-end after the Fed hikes rates. Its 12-month forecast of 2,125 stands against the current level of 2,130.
- With appreciation returns expected to be nil, Goldman suggests having a look at its dividend growth portfolio - a sector-neutral basket of 50 stocks. They have a median yield of 2.5% and are expected to boost payouts by 16% this year and 12% in 2016. The group's P-E ratio is 15 vs. 17.3 for the S&P 500.
- The ten highest-yielding additions: Harley-Davidson (NYSE:HOG) - with a 2.3% yield, Home Depot (NYSE:HD) - 2.1%, Dr. Pepper Snapple (NYSE:DPS) - 2.5%, National Oilwell Varco (NYSE:NOV) - 3.6%, Regions Financial (NYSE:RF) - 2.3%, Baxter International (NYSE:BAX) - 3.1%, Cummins (NYSE:CMI) - 2.4%, Seagate Technology (NASDAQ:STX) - 3.9%, International Paper (NYSE:IP) - 3.1%, AES Corp (NYSE:AES) - 3%.
- Looking over a ten-year horizon, Goldman expects dividends to account for 46% of the S&P 500's 5% annualized return, up from 20% during the current bull market which started in 2009.
- ETFs: DVY, SCHD, ADX, SDOG, DLN, DHS, FDL, DTD, FVD, DVYL, SDYL
Fri, May 15, 5:07 PM
- Berkshire Hathaway (BRK.A, BRK.B) owned 6.2M shares of 21st Century Fox (NASDAQ:FOXA) at the end of Q1, up from 4.7M at the end of Q4, the quarter in which the stake was established.
- Warren Buffett's firm also upped its stake in Precision Castparts (NYSE:PCP) to 4.2M shares from 2.9M, and in Phillips 66 (NYSE:PSX) to 7.5M from 6.6M. Berkshire's positions in IBM, Wells Fargo, Deere, and U.S. Bancorp were modestly increased. Dan Loeb cut his Phillips 66 stake in Q1.
- Berkshire cut its stake in oil/gas equipment maker National Oilwell (NYSE:NOV) to 2M shares from 5.3M at the end of Q4. Positions in MasterCard, Visa, Charter, WABCO, Bank of New York, Liberty Global, and Viacom were modestly cut.
- No new positions were taken in Q1, nor were any positions fully liquidated. Wells Fargo ($25.6B stake at the end of Q1) remains Berkshire's biggest holding, followed by Coca-Cola ($16.2B), IBM ($12.8B), American Express ($11.8B), and Wal-Mart ($5B).
- Berkshire's Q1 13F filing
- Two weeks ago: Notes from Berkshire's annual meeting
Thu, May 14, 8:13 AM
Mon, May 11, 11:49 AM
- It's time to "take profits and... a summer vacation" in onshore oil services stocks such as National Oilwell Varco (NOV -2.8%), Weatherford International (WFT -2.7%), Patterson-UTI Energy (PTEN -3.7%) and RPC (RES -4%), Citigroup's Scott Gruber says.
- The onshore service stocks are discounting at least 400 horizontal rigs returning to service, yet quick-to-market tight oil means supply concerns likely will manifest as soon as the rig count begins to rally, the firm says.
- Citi downgrades NOV to Sell from Neutral given risk of backlog cancellations, continued EPS compression and valuation, and believes a recovery multiple is not warranted for the stock until backlog growth resumes; the firm also cuts RPC to Sell, reiterates its Sell rating on Helmerich & Payne (HP -2%), and lowers WFT and PTEN to Neutral from Buy.
Wed, Apr. 29, 11:59 AM
- National Oilwell Varco (NOV +1%) is downgraded to Underweight from Equal Weight with a $53 price target at Morgan Stanley, following mixed Q1 results and reflecting the expected steep decline in the demand for NOV's offshore drilling equipment products.
- While NOV's emerging FPSO and wellbore technologies divisions have momentum, they are unlikely to compensate, the firm says, adding that NOV's expansion into floating production solutions offers great promise but "more is needed for this to be a meaningful needle mover."
- Stanley sees a 2015 rebound for wellbore technologies and expects the rig aftermarket and C&P solutions to turn the corner in late 2016, so it says its downgrade is a relative call vs. other earlier cycle peers.
Tue, Apr. 28, 8:26 AM
- National Oilwell Varco (NYSE:NOV) +0.9% premarket after Q1 earnings beat expectations on solid sales growth in the rig segment, its largest contributor to revenue.
- Q1 sales in the rig segment grew 12% Y/Y to $2.52B but other segments fell: revenue in the wellbore technologies segment fell 8% to $1.17B, revenue in the completion and productions solutions business fell 5% to $948M, and sales in the rig aftermarket segment fell 4% to $719M.
- Ending backlog for capital equipment orders at NOV's rig systems business was $10.43B, down 17% Q/Q and down 31% Y/Y; backlog for the completion and production segment was $1.46B.
- NOV says it performed well in the quarter despite “the significant downturn in oil price and oilfield activity” and will continue with cost-reduction initiatives to “mitigate the impact of declining revenues,” which it expects to continue through at least the new few quarters.
Tue, Apr. 28, 7:01 AM
Mon, Apr. 27, 5:30 PM
- AET, AGCO, AIXG, AKS, ALLY, AMG, AUDC, AUO, AXE, BMY, BP, BSX, CARB, CAS, CBR, CIT, CMI, CNC, CNX, COH, CPLA, CRY, DFRG, DORM, ECL, ENTG, ETR, F, FBC, FDP, FLWS, FMER, GAS, GLW, GPI, HMC, HSP, ICLR, IDXX, IIVI, IPGP, IPI, JBLU, JEC, LRN, LXK, MAS, MDXG, MHFI, MRGE, MRK, NCI, NEO, NOV, OFC, OSK, PAG, PFE, PH, PHG, POR, SALT, SC, SIR, SIRI, ST, SVU, TMUS, TXT, UBSI, UPS, UTHR, VDSI, VLO, WAT, WDR, WHR, WWW, WYN, XRS, YNDX
Thu, Apr. 23, 5:49 PM
- At least a half-dozen major industrial companies - including GE, Caterpillar (NYSE:CAT) Siemens (OTCPK:SIEGY), Honeywell (NYSE:HON), Dover (NYSE:DOV), Danaher (NYSE:DHR) and Emerson Electric (NYSE:EMR) - are said to be weighing offers for oilfield services assets worth $5B-$10B that Halliburton (NYSE:HAL) is preparing to sell ahead of its pending merger with Baker Hughes (NYSE:BHI), Bloomberg reports.
- HAL reportedly will send offering materials to those companies, as well as P-E firms and rival oilfield services providers, in the coming weeks; first up likely will be the drill bits unit and another that uses data to track and steer the direction of drills.
- These companies could own an edge over oilfield services companies that analysts have pegged as logical bidders for HAL’s castoffs - such as National Oilwell Varco (NYSE:NOV) and Superior Energy Services (NYSE:SPN) - because HAL might not want to give any more market share to companies that already offer the same services, preferring to sell to new players entering the market.
Wed, Apr. 22, 7:57 AM
- National Oilwell Varco (NYSE:NOV) appoints Scott Duff, currently VP and Chief Accounting Officer, as interim CFO following news that Jeremy Thigpen is leaving the company to become CEO of Transocean.
- Duff held accounting positions at KPMG, Ernst & Young and SBC before joining NOV in 2004, and has served as NOV's VP and Chief Accounting Officer since 2014.
- Thigpen has spent 18 years at NOV, serving as CFO since 2012.
Tue, Apr. 21, 6:57 PM
- Transocean (NYSE:RIG) names Jeremy Thigpen as its new President and CEO effective immediately, succeeding interim CEO Ian Strachan.
- Prior to joining RIG, Thigpen spent his career in various roles at National Oilwell Varco (NYSE:NOV) and became senior VP and CFO in 2012; he joined NOV in 1997.
- Strachan - also RIG's Chairman - will retire from the board at the end of his term at the 2015 annual general meeting following 16 years at the company.
- RIG -0.7% AH.
Fri, Feb. 27, 7:57 AM
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
National Oilwell Varco Inc is a provider in the design, manufacture and sale of equipment and components used in oil and gas drilling, completion and production operations, and the provision of oilfield services to the upstream oil and gas industry.
Other News & PR