Richard Zeits • 11 Comments
Stephen Simpson, CFA
Thu, Mar. 17, 3:43 PM
- Offshore oilfield service companies with pristine balance sheets have significantly outperformed onshore service peers, but Morgan Stanley's Ole Slorer finds better value for now in companies with similar business exposures with slightly higher but manageable risks.
- He upgrades Superior Energy Services (SPN +6.8%) to Overweight from Equal Weight with a $15 price target, upped from $13.50, and maintains Nabors Industries (NBR +6.8%) at Overweight with a $13 price target, acknowledging higher risk in the two companies but believing they have substantial liquidity and potential for cash flow neutrality even if the current downcycle persists longer than expected.
- However, Slorer downgrades RPC Inc. (RES -2.9%) to Equal Weight from Overweight and Helmerich & Payne (HP +1.1%) to Underweight, noting that both companies are high quality operators with nearly debt-free balance sheets but whose stocks had significantly outperformed the sector YTD to a point where valuations look less attractive.
Aug. 24, 2015, 3:59 PM
- U.S. Silica (SLCA -15.4%) and C&J Energy (CJES -21.1%) stagger to 52-week lows amid huge losses on the day after shares of each were downgraded to Neutral from Buy at SunTrust, citing a 31% reduction in its U.S. onshore rig count forecast (I, II).
- The firm downgraded several names in the oilfield services sector in addition to SLCA, including Seventy Seven Energy (SSE -14.8%) and RPC Inc. (RES -3.6%)
May 11, 2015, 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.
Nov. 28, 2014, 10:35 AM
- Oil service companies mull OPEC's threat to the U.S. shale boom by its decision to hold production and the resulting tumble in oil prices.
- C&J Energy (CJES -17.6%), RPC, Inc. (RES -14.5%), GreenHunter Resources (GRH -9.5%), Seventy Seven Energy (SSE -16.5%), Pioneer Energy (PES -13%).
- Larger names: Halliburton (HAL -11.5%), Schlumberger (SLB -9.7%), Superior Energy (SPN -15%), Baker Hughes (BHI -9.1%).
Oct. 15, 2014, 3:59 PM
- Oil services companies are rising after Citigroup issued positive comments on a number of stocks in the sector.
- Baker Hughes earns a Buy rating, seen as having a strong chance of meeting EPS estimates before tomorrow's open given recent contract wins in Norway and Brazil, and the stock's valuation is "compelling."
- Among small- and mid-caps, Citi starts Patterson-UTI (PTEN +5.7%) and RPC (RES +2.3%) with Buy ratings, seeing each as likely to outperform if, as the firm forecasts, crude prices rebound and E&P companies' capital expenditures are higher than expected.
- Citi tags Schlumberger (SLB +0.5%), Halliburton (HAL +2.1%), Weatherford (WFT +1%), Superior Energy (SPN +2%) and Helmerich & Payne (HP +5.1%) with Neutral ratings.
Jan. 29, 2014, 12:54 PM
- RPC (RES -8.1%) shares are sharply lower after the oilfield service company reported Q4 earnings that fell 32% Y/Y and fell short of expectations.
- Demand for services was strong but pricing was lower than expected and led to the drop in profits; margins were lower than expected, and the outlook for Q1 indicates only modest improvement
- Investor expectations were too bullish, Cowen analysts say; while major downside to estimates following the revision isn't expected, oversupply likely will keep a lid on pricing improvement for an extended period (Briefing.com).
Jun. 25, 2013, 5:35 PM
Jun. 20, 2013, 5:30 PM
Jun. 5, 2013, 2:05 PM
Apr. 24, 2013, 12:42 PM
Shares of RPC (RES -12.3%) sink after the provider of oilfield equipment reports Y/Y declines of 56% in earnings and 15% in revenues, reflecting lower sales due to competitive pricing and lower activity levels in many of its service lines. "There are 38 pressure pumping companies competing for business in west Texas today," CEO Richard Hubbell says.| Apr. 24, 2013, 12:42 PM
Apr. 24, 2013, 9:17 AMRPC, Inc. (RES) declares $0.10/share quarterly dividend, in line with previous. Forward yield 2.73%. For shareholders of record May 10. Payable June 10. Ex-div date May 08. Shares -12.9% premarket. (PR) | Apr. 24, 2013, 9:17 AM
Apr. 24, 2013, 9:11 AM
Apr. 15, 2013, 5:47 PM
Apr. 12, 2013, 5:53 PM
Apr. 25, 2012, 7:53 AMRPC (RES): Q1 EPS of $0.37 beats by $0.01. Revenue of $503M (+31.6% Y/Y) misses by $5M. Shares +1.8% premarket. (PR) | Apr. 25, 2012, 7:53 AM | 3 Comments
Jan. 26, 2012, 2:58 PM
Carbo Ceramics (CRR -19.8%) joins Halliburton (HAL), Schlumberger (SLB) and RPC (RES) in warning of lower capital spending on natural gas projects that could upset the plans of companies providing drilling and related services to oil and gas producers. "The growth of activity in liquids-rich plays contributed to logistical issues in the industry" during Q4, CRR says. (submitted by Michael Filloon)| Jan. 26, 2012, 2:58 PM