Dec. 1, 2015, 1:25 PM
- Schlumberger (SLB +0.6%) discloses plans to further reduce its workforce and streamline its support structure in light of expected reduced activity for 2016.
- As a result, SLB says it expects to record a Q4 pre-tax restructuring charge of ~$350M.
- The filing does not specify how many jobs could be on the line; SLB already has cut nearly 10K jobs this year in response to lower oil prices.
- Investor presentation
Nov. 24, 2015, 5:26 PM
- Susquehanna analysts suspect that international oil exploration will be even weaker than expected, prompting them to reduce estimates for oil services companies Halliburton (NYSE:HAL), Schlumberger (NYSE:SLB), Weatherford International (NYSE:WFT) and Baker Hughes (NYSE:BHI).
- The firm expects activity levels to steadily drift lower in 2016, as national oil companies and international companies slow spending in order to manage cash flows; NOCs generally operate on annual budgets that are not typically subject to much revision, so the larger international operators will be looking for a sustained move higher in oil prices before ramping up spending and activity levels, Susquehanna says.
- The firm's 2016 EPS forecast for SLB slips to $2.50 from $2.78, for WFT falls to a loss of $0.60 from a loss of $0.51, for BHI to a loss of $0.17 from a loss of $0.16, and for HAL to $1.16 from $1.17.
Nov. 17, 2015, 6:30 PM
- Schlumberger’s (NYSE:SLB) proposed purchase of Cameron International (NYSE:CAM) is cleared by the U.S. Justice Department, putting the companies on track to close the deal early next year.
- The DoJ found that the transaction did not violate antitrust laws, and cleared the proposed merger without any conditions, the companies said.
- CAM shareholders still must sign off on the deal, and are expected to vote in a special meeting on Dec. 17; approval is not needed from SLB’s shareholders.
Nov. 6, 2015, 5:30 PM
- Oilfield service companies are in "survival mode," looking to cut costs large and small - from thousands of job cuts to capacity reductions to changing paint colors - WSJ reports.
- Example: Technip (OTCQX:TNHPF) is cutting 6K jobs and using white paint instead of yellow on underwater equipment because adding pigment is more expensive.
- The oil downturn has left even the world's biggest oil services company, Schlumberger (NYSE:SLB), vulnerable; in its Q3 results, the company reported big drops in earnings and revenue.
- Next year could be even worse as producers cut more than $200B in spending this year and next; consult Wood Mackenzie expects only 10 new projects globally to attract investment commitments, which would hit a sector that typically has the capacity to support an average of 40-50 new projects a year.
- Other relevant tickers include: HAL, BHI, CAM, WFT, AMFW, XLE, OIH, XES, IEZ
Oct. 19, 2015, 5:14 PM
- Energy Recovery (NASDAQ:ERII) +102.4% AH after saying it signed a 15-year, $125M deal with Schlumberger (NYSE:SLB) that provides exclusive use of ERII's VorTeq hydraulic pumping system that reduces the number of pumps needed on a fracking job.
- SLB also agrees to pay continuing annual royalties for the license agreement period, subject to ERII satisfying certain performance indicators.
- ERII describes the VorTeq pumping system as the first hydraulic fracturing manifold built to isolate hydraulic fracturing pumps from abrasive proppants that cause pump failure.
- ERII CEO Joel Gay tells Reuters the VorTeq system could save SLB as much as $5/bbl on a frac job and could cut the number of pumps needed to as few as four from 20.
Oct. 16, 2015, 3:27 PM
- Schlumberger (SLB -2.8%) will cut more jobs and consolidate its manufacturing and distribution network, as the company warns of at least another year of pain across the industry, CEO Paal Kibsgaard said in today's earnings conference call.
- "The likely recovery in our activity levels now seems to be a 2017 event,” the CEO said, as E&P companies have indicated they plan to cut spending next year but have not finalized their budgets, making it difficult for services firms to predict how much further activity could fall.
- Kibsgaard did not say how many additional jobs are on the block but did say the company will post a Q4 restructuring charge to include severance pay for laid-off workers; SLB took a $390M pre-tax charge in Q2 after cutting headcount by 11K employees.
- "If they are going make a reduction, it is going to be a sizable reduction to lower the cost structure and given the expected decline - 10% is a reasonable number," Edward Jones analyst Rob Desai says.
- Nevertheless, analysts are mostly upbeat about SLB; Citigroup reiterates a Buy rating and $81 price target, and FBR maintains its Outperform rating as "SLB has continued to execute impressively, reinforcing the strengths that made it our top pick for 2015."
Oct. 15, 2015, 5:11 PM
- Schlumberger (NYSE:SLB) -0.9% AH after reporting slightly better than expected Q3 earnings, as deep cost cuts and efficiency improvements helped ease the pain of a 47% Y/Y decline in North America revenues to $2.3B.
- SLB says Q3 revenue from outside North America, which accounted for nearly three quarters of its total revenue, fell 27%; revenues fell 6% Q/Q globally and 4% Q/Q in North America,
- SLB says the market outlook for oilfield services "looks increasingly challenging with activity expected to be reduced further, as lack of available cash flow exhausts capital spending for a number of our customers, leading them to take a conservative view on 2016 E&P spending in spite of any gradual improvement in oil prices."
- SLB reaffirms FY 2015 capex of ~$2.5B.
- U.S. oil services peers Halliburton (NYSE:HAL) and Baker Hughes (NYSE:BHI) are scheduled to report earnings next Monday and Wednesday, respectively.
Oct. 15, 2015, 4:11 PM
- Schlumberger (NYSE:SLB): Q3 EPS of $0.78 beats by $0.01.
- Revenue of $8.47B (-33.0% Y/Y) misses by $80M.
Oct. 15, 2015, 1:02 PM
- Schlumberger (NYSE:SLB) declares $0.50/share quarterly dividend, in line with previous.
- Forward yield 2.67%
- Payable Jan. 8; for shareholders of record Dec. 2; ex-div Nov. 30.
Oct. 14, 2015, 5:35 PM
Oct. 7, 2015, 5:37 PM
- Schlumberger (NYSE:SLB) is out and Frank's International (NYSE:FI) is in, praising FI's “self-help improvements with a good underlying business.” as Credit Suisse analysts update their top energy stock picks in 10 different subsectors.
- Credit Suisse names Devon Energy (NYSE:DVN) as its favorite oil and gas E&P stock, which should ultimately outperform despite near-term oil price risk “given its defensive valuation, top quartile oil growth profile, and further accretion potential from EnLink."
- Top independent refiner is Marathon Petroleum (NYSE:MPC), as the firm believes the synergy of the company’s recently-acquired Hess retail business is exceeding plans, and it is confident MPC will continue to benefit from self-help initiatives.
- Among MLPs, Genesis Energy (NYSE:GEL) is defensive in terms of its direct exposure to commodity price weakness and offensive in terms of the distribution growth expected following its recent acquisition of offshore assets from Enterprise Products Partners.
- Other subsector favorites:MRO, PDCE, EURN, SCTY
Sep. 30, 2015, 3:44 PM
- Schlumberger (SLB -0.9%) calls off its $1.7B deal for a stake in Eurasia Drilling, Russia’s largest onshore drilling firm, after Russia's government failed to approve the deal by the company's deadline.
- The decision comes after SLB warned last week that it would not extend the latest of several deadlines for Russian anti-monopoly officials to approve the offer.
- A successful deal would have helped strengthen SLB's reach in Russia and given it a base from which to grow in the region, but the company still provides services to oil companies operating there even as sanctions have sharply reduced Western investment in the country.
Sep. 24, 2015, 12:15 PM
- Schlumberger (SLB +0.3%) says it will not extend its pending agreement to acquire a minority equity interest in Eurasia Drilling once the current extension expires on Sept. 30.
- SLB had wanted to buy a 45.65% stake in Eurasia for ~$1.7B, potentially paving the way for it to become the sole owner of Russia's most active oilfield services company.
- The deal initially was endorsed by Russia's anti-monopoly body but it has since been postponed several times.
Sep. 16, 2015, 5:18 PM
- Cowen analyst James Crandell thinks the current down cycle in oil is "the worst ever" in terms of magnitude of the decline in exploration and production spending and thus in its impact on oil services companies (NYSEARCA:OIH); unlike past cycles, Crandell says there is a growing realization that a strong recovery in oil prices is not likely.
- Crandall estimates that when all is said and done, the 2015-16 down cycle will see a decline in global E&P spending of 35%-40%, with a drop internationally of 30% and in North America of 50%.
- The analyst cuts his price target on Baker Hughes (NYSE:BHI) to $56 from $61, Halliburton (NYSE:HAL) to $38 from $40, and Schlumberge (NYSE:SLB) to $90 from $100, but raises his target on Cameron International (NYSE:CAM) to $65 from $51.
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. 9, 2015, 3:19 PM
- Schlumberger (SLB -0.7%) says it is teaming up with German oil field equipment supplier Bauer to develop and build a new generation of larger, more efficient drilling rigs.
- Bauer will create custom-built rigs for SLB as well as offer other rigs to international drilling companies in a joint venture expected to generate revenue of more than €100M ($112M).
- CEO Paal Kibsgaard says SLB has been working for two years on a new land rig design with T&T Engineering, a land rig design firm recently acquired by the company.
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