Superior Energy Services, Inc.NYSE
Superior Energy Searches For Opportunity Amid Adversity
Stephen Simpson, CFA
Stephen Simpson, CFA
Superior Energy Services Offers A Strong Risk-Reward
Alpha Gen Capital
Alpha Gen Capital
Wed, Nov. 30, 3:28 PM
- Stephens analysts say “structurally oversupplied crude markets will take more time to balance” even with an OPEC production cut, which makes them reiterate support for their top six picks among oil services stocks: Baker Hughes (BHI +6.4%), Nabors Industries (NBR +22.8%), Schlumberger (SLB +5.2%), Oceaneering International (OII +6.8%), Superior Energy Services (SPN +17.8%) and Flotek Industries (FTK +13.6%).
- The firm says the companies "tend to have market leadership, stable balance sheets and/or cash flows, differentiated/diverse products or services or product line leadership.”
- Stephens says a production cut and follow-through could justify its base case to high case range for oil averaging $52/bbl in 2017 and $54/bbl in 2018, with low and high cases ~$10/bbl higher or lower in each year.
Wed, Oct. 26, 11:37 AM
- Superior Energy Services (SPN -0.2%) is a buying opportunity after posting a substantial Q3 miss due to Gulf of Mexico weakness and onshore compression, says Morgan Stanley's Ole Slorer, who rates the shares at Overweight with a $25 price target.
- Slorer says expectations for SPN have been substantially reset and make near-term numbers more attainable, and thinks Wall Street is underestimating cycle upside in the company.
- On the flip side, Scotia Howard Weil downgrades shares to Sector Outperform from Focus Stock with a $20 price target, cut from $25, citing the severity of the earnings revision and lack of a definitive near-term catalyst.
Tue, Oct. 25, 2:41 PM
- Superior Energy Services (SPN -18%) sinks to its lows of the day, down 18% after reporting a worse than expected Q3 loss on 46% lower revenues Y/Y, showing continuing deterioration in the company's results.
- SPN says that while U.S. land markets may be improving a bit, the Gulf of Mexico and certain international markets continue to lag and declined further during Q3.
- Citigroup downgrades shares to Neutral from Buy with a $19 price target, cut from $22, following the weak Q3 numbers, including $73M in revenue from the Gulf of Mexico that came in 23% below the analyst's expectation.
- "The drag from offshore drilling/completion is likely to linger, with the latest results revealing the magnitude of the impact," Citi says, adding that there is now less possibility of an acquisition thesis, even considering equity financing.
Tue, Oct. 25, 2:05 PM
Tue, Oct. 25, 9:16 AM
Mon, Oct. 24, 4:17 PM
Sun, Oct. 23, 5:35 PM
Thu, Sep. 29, 2:03 PM
Mon, Jul. 25, 4:19 PM
Sun, Jul. 24, 5:35 PM
Fri, Jul. 15, 11:36 AM
- Superior Energy (SPN -1%) is upgraded to Outperform from In-line with a $23 price target, raised from $15, at Imperial Capital, which says SPN appears to have attractive leverage to a recovery in energy services.
- Imperial believes SPN is well positioned as an early-stage beneficiary of a potential E&P industry upturn, given its positioning in attractive onshore service lines, recent cost reduction efforts, and healthy balance sheet condition.
- The firm says SPN’s Q2 results may not reflect any fundamental improvement, but the impact of the industry upturn is likely to become more visible by year-end 2016 with results likely to accelerate in 2017 and beyond.
Tue, Jul. 12, 11:30 AM
- Six oil services stocks - Flotek Industries (NYSE:FTK), Schlumberger (SLB +4.4%), Halliburton (HAL +4%), Oceaneering (OII +6%), Superior Energy Services (SPN +5.5%) and Rowan (RDC +8.1%) - should do well regardless of the price of oil, Stephens analyst Matthew Marietta says.
- The past 18 months have proven that trying to predict specific commodity prices is a guessing game, Marietta says, but he thinks that a global ratio of reserves to annual production levels at an all-time high, coupled with global equipment overcapacity and cost deflation "has the potential to create a price environment range-bound in line with our sensitivities."
- Stephens also upgrades RDC and Nabors Industries (NBR +9.8%) to Overweight from Equal Weight.
Tue, May 3, 11:59 AM
- Superior Energy (SPN -2.7%) is upgraded to Buy from Neutral with a $20 price target, raised from $14, at Citigroup, which foresees a potential accretive acquisition due to the supply of excess frac equipment potentially available at depressed prices.
- The firm believes consolidation within the domestic fracking industry offers one of the best valuation creation routes, and that SPN's shift in strategy to expand its fracking business offers a material catalyst for the stock, with ProPetro and Weatherford's pumping assets as potential targets.
- Citi says a deal also could improve SPN's balance sheet and ease discussions with lenders, benefiting the current multiple.
- Now read Superior Energy, Helmerich & Payne, Patterson downgraded at J.P. Morgan
Thu, Apr. 28, 4:56 PM
- Superior Energy (NYSE:SPN): Q1 EPS of -$0.49 beats by $0.11.
- Revenue of $413.1M (-55.0% Y/Y) misses by $34.93M.
Wed, Apr. 27, 5:35 PM
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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