Mon, May 23, 5:37 PM
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.
Mon, May 23, 9:55 AM
- Schlumberger (SLB -0.1%) is added to the Conviction Buy list at Goldman Sachs, which says any further pullback in the stock following its 11% drop since April 20 would present a buying opportunity.
- Goldman says SLB is "best positioned for the New Oil Order, given the company’s exposure to “incremental sources of oil supply" such as the U.S. shales, Middle East OPEC and Russia, and the balance sheet offers operational and financial flexibility.
- The firm also notes several positive catalysts in the offing for the company, such as “positive updates on the Cameron integration process and revenue/cost synergies.”
- Goldman has a $94 price target on SLB shares and sees a 29% upside over the next 12 months.
- Now read Schlumberger: There's a reason it is the top oil service provider
Tue, May 17, 6:37 PM
- Halliburton (NYSE:HAL) was upgraded earlier to Outperform from Market Perform with a $49 price target, raised from $44, at FBR Capital, which says it “like(s) unfettered Halliburton and Baker Hughes (NYSE:BHI) in an afraid new world.”
- The firm believes HAL "can fully resume its role as the U.S.’s most cost-efficient pumper, leveraging an unrivaled supply chain and logistics footprint and an upgraded fleet... internationally, HAL should face less fierce competition from Baker Hughes while continuing to narrow its performance gap compared to Schlumberger (NYSE:SLB)."
- FBR now believes the U.S. E&P industry will be able to achieve its target production levels with a volume of rigs at the low end of the debated range, but this rig count will be drilling increasingly complex and technology-rich wells, which the firm says supports its strategy of sticking with a small group of the most likely secular winners: HAL, BHI and SLB.
Fri, May 6, 3:54 PM
- Halliburton (HAL -1.4%) says it is reducing activity in Venezuela due to lack of payment, following rival Schlumberger's (SLB -0.5%) similar move last month.
- HAL says its receivables in Venezuela rose 7.4% in Q1 to $756M compared to the end of 2015, representing more than 10% of its total receivables; Venezuela the only country or customer that represents more than 10% of receivables.
- Venezuela, which holds the biggest oil reserves of any country, has been hit hard by the oil price collapse as most of the government’s revenue comes from petrodollars.
Fri, Apr. 29, 3:53 PM
- "The downgrade of Schlumberger (SLB +0.8%) to A1 (from Aa3) reflects the severity of the broader energy industry downturn and our expectation that the recovery in industry activity will be slow," says Moody's. The outlook is cut to negative from stable, suggesting the chance of another downgrade in the offing.
Mon, Apr. 25, 3:58 PM
- Schlumberger (SLB -1.5%) is maintained with an Outperform rating at Credit Suisse even as the stock's near-term valuation is not highly compelling, but the firm says North American revenue likely will hit bottom during Q2 to mark the end of energy's “worst downcycle in 30 years.”
- Technology likely will become more critical to revenue growth, market share and pricing as the upcycle unfolds, the firm believes, pointing out that SLB is the technology leader in many lines of business.
- The bottom of a price and activity cycle has been a proven entry point for SLB - the "largest [oilfield services] company with the highest technology" - and "we see no real difference this time.”
- At the same time, Cowen analysts raise their SLB price target to $85 from $75, noting the stock held up fairly well even amid weaker than expected guidance, suggesting investors see a bottoming of earnings revisions (Briefing.com).
Fri, Apr. 22, 3:57 PM
- Schlumberger (SLB -0.4%) eliminated 8K jobs during Q1, CEO Paal Kibsgaard said in today's earnings conference call, bringing the workforce of the world’s largest oil field services company down by nearly one-third since cuts began in late 2014.
- SLB’s worldwide head count only decreased to 93K from 95K, but the company reclassified 5.5K contractors as permanent employees, so the overall reduction was 8K employees, Kibsgaard clarified.
- The CEO reiterated his gloomy assessment of the worldwide oil market, calling it "the toughest environment we’ve seen in 30 years and likely to get even tougher before the market turns," and said the company is even evaluating the costs and benefits in some regions “in the event we have to shut everything down."
- But Kibsgaard also thinks the industry will begin a rebound by 2017, expecting the current oil oversupply "to drop to almost zero by the end of the year” and noting that North America is leading the way in production cuts.
- FBR Capital reiterates its Outperform rating, saying surprisingly strong non-North America profitability plus stronger EBIT margins across all three international regional divisions outweigh slightly weaker North America margins, believing most investors had written off North America but were apprehensively bracing for SLB's margins internationally; FBR says the international results bolster its confidence in the mitigating force of SLB's ongoing transformation (Briefing.com).
- Now read Schulmberger earnings slashed but meet estimates; industry "deteriorating"
Thu, Apr. 21, 5:48 PM
- Schlumberger (NYSE:SLB) -4.5% AH after Q1 earnings and revenues fell sharply from a year ago, and the company continues to paint a very gloomy near-term picture of the world oil market.
- SLB says Q1 revenue in its North America business plunged 55% Y/Y and swung to a $10M pretax operating loss from a $416M profit a year ago, while revenue from operations outside North America sank 28% as pretax operating earnings fell to $1.06B from $1.66B a year ago; overall pretax operating margins fell to 13.8% from 19.4%.
- The company cut another 2K jobs in the quarter, sending global headcount down to ~93K.
- SLB CEO Paul Kibsgaard says global spending reductions from oil companies are nearing 25% this year with reductions of 40%-50% in North America and 20% internationally.
- During Q1, "the decline in global activity and the rate of activity disruption reached unprecedented levels as the industry displayed clear signs of operating in a full-scale cash crisis,” Kibsgaard said. "Budgeted E&P spend fell again and substantially affected our operating results. This environment is expected to continue deteriorating over the coming quarter given the magnitude and erratic nature of the disruptions in activity.”
- Now read Schlumberger: Loss of Venezuela business could sting
Thu, Apr. 21, 4:32 PM
Thu, Apr. 21, 4:19 PM
Wed, Apr. 20, 5:45 PM
- Wells Fargo analysts say they are sticking with Halliburton (NYSE:HAL) as their top picks among oil service stocks even as the proposed merger with Baker Hughes looks increasingly iffy.
- The firm says it is re-adjusting its rankings with a bias towards large cap names along with high level of conviction towards execution, and expects the market to pay a premium multiple for the best-in-class names in the next multi-year recovery.
- In order, Wells' favorites in the sector are a stand-alone HAL, Baker Hughes (NYSE:BHI), U.S. Silica (NYSE:SLCA), Nabors Industries (NYSE:NBR), FMC Technologies (NYSE:FTI) and Schlumberger (NYSE:SLB); it maintains an Outperform on Weatherford (NYSE:WFT) but moves the stock down in the rankings based on debt concerns and re-investment capacity in a recovery.
- Now read Schlumberger is Barclays' top pick in North America oilfield services
Wed, Apr. 20, 5:35 PM
Wed, Apr. 20, 2:33 PM
- Schlumberger (SLB +2.4%) is on the move after being upgraded to Overweight from Equal Weight with a $93 price target, raised from $83, at Barclays, which believes that "no company has improved itself more during the downturn than SLB."
- Naming the company its top pick in the North America Oilfield Services & Equipment group, Barclays also expects SLB's international share to continue growing and its return on invested capital to expand the most among the group.
- But the firm also thinks a "scarcity premium" has evolved as investors have little to work with in the sector, as the offshore market is several years away from a recovery and liquidity issues are enveloping many of the small and mid caps.
- The firm views Halliburton (HAL +1.7%) as the "purest way to play the U.S. land recovery" but says "valuation looks a bit stretched post the BHI deal and is highly dependent on higher E&P spending."
- Barclays also upgrades Superior Energy (SPN +1.6%) to Overweight from Equal Weight and Dril-Quip (DRQ +0.3%) to Equal Weight from Underweight, and downgrades Hornbeck Offshore (HOS +3.6%) and National Oilwell Varco (NOV -1.2%) to Equal Weight from Overweight as well as Pacific Drilling (PACD -1.7%) to Underweight from Equal Weight.
- Now read Schlumberger shares soared by 20%, but with muted fundamentals
Mon, Apr. 18, 10:25 AM
- The energy sector (XLE +0.1%) pokes into the green as crude oil prices pare earlier losses even after the collapse of the Doha meeting, and it's a mixed bag among the top global oil companies in early trading: XOM +0.1%, CVX +0.3%, RDS.A -0.9%, BP -0.3%, TOT -0.4%.
- Kuwait may have achieved what Doha failed to do, at least in the short term, as a labor strike that began Sunday has cut the country's production by 60%, shuttering 1.7M bbl/day, slightly more than H1's global surplus that caused prices drop to a 12-year low in January.
- Some oil analysts say the lack of a Doha deal is better for oil prices in the long run now that the rebalancing process of supply and demand can continue to its natural conclusion.
- Other noteworthy names: KMI -0.1%, CHK -4%, MRO -1.4%, COP +0.1%, SLB +0.2%, HAL +0.2%, BHI -0.7%, OXY +0.5%, APC -0.1%, HES +0.6%, ENB +0.8%, ETP -0.4%, EPD +1.5%.
- ETFs: XLE, VDE, ERX, OIH, XOP, FCG, ERY, GASL, DIG, DUG, BGR, XES, IYE, IEO, FENY, IEZ, PXE, PXI, FIF, PXJ, RYE, NDP, GUSH, PSCE, DRIP, DDG, FXN
- Now read No deal! Our 'enfant terrible' Saudi Arabia did it again
Wed, Apr. 13, 7:57 AM
- Schlumberger (NYSE:SLB) says it is cutting back operations in Venezuela, citing delays in payments from the country’s state-run oil company.
- Venezuela, which holds the biggest oil reserves of any country, has been hit hard by the oil price collapse as most of the government’s revenue comes from petrodollars; the country accounts for more than 10% of SLB’s business.
- SLB earlier had disclosed an arrangement in which state-run PdVSA transferred over “certain fixed assets” as payment for ~$200M owed.
- SLB also affirms its Q1 total revenue projection of ~$6.5B.
- Now read Earnings could cause a drop in Schlumberger's capitalization
Schlumberger NV operates as an oilfield services company, which supplies technology, project management and information solutions for the oil and gas industry. The company operates through three segments: Reservoir Characterization Group, Drilling Group and Production Group. The Reservoir... More
Sector: Basic Materials
Industry: Oil & Gas Equipment & Services
Country: United States
Other News & PR