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
Superior Energy Services Needs U.S. Land To Turn
Stephen Simpson, CFA
Stephen Simpson, CFA
Yesterday, 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
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
Mon, Apr. 18, 1:03 PM
- Deutsche Bank upgrades Ensco (NYSE:ESV) to Hold from Sell.
- Price target goes to $9 from $5. Implied downside 11%.
- Late last week, ESV announced an equity offering expected to raise $525M.
- "Although we did not necessarily expect an offering from ESV given its already strong balance sheet, we did (and continue to) believe this is exactly the kind of action needed to restore the offshore drilling industry to health.
- "The company is now positioned to lead much needed consolidation. However, the current mixed outlook leaves us with a HOLD rating.
- "Should the industry follow suit, it could lead to a harder line on pricing which, in turn, could bring about price discovery on assets/ M&A and help put a floor under the stocks."
- ESV’s actions are consistent with our view that in order for the industry to survive, industry leaders needed to shore up their balance sheets and aggressively retire older assets which would put a floor under dayrates/asset values and help facilitate consolidation. We thought the floater companies would be the first movers given the more distressed balance sheets and the segment would be easier to consolidate.
- Deutsche Bank's top picks in the oil-services industry:
- HAL - price target $40. "HAL's ability to deliver value by driving customer unit costs lower through technology and efficiencies will become increasingly important during the downturn."
- BAS - price target $3. "Basic's high exposure to completion/production will allow the company to benefit from the growing backlog of drilled but uncompleted wells."
- KEG - price target $1. "KEG's production leveraged businesses should hold up better than overall drilling activity and also recover sooner when oil fundamentals return to balance."
- SPN - price target $15. "SPN is a uniquely positioned mid cap diversified service provider. Its product mix drives high, through-cycle margins relative to peers, which will allow it to lower pricing to protect market share during the downturn."
Fri, Apr. 15, 12:39 PM
- Investor hopes of further gains in oil prices are unrealistic, and expectations for U.S. onshore drilling stocks are sporting inflated multiples, J.P. Morgan analysts say as they reduce ratings where expectations may have jumped too far too fast.
- The firm downgrades Helmerich & Payne (HP -2.6%) and Patterson-UTI (PTEN -3.6%) to Underweight from Neutral with respective $39 and $13 price targets, saying that while both have strong management teams and solid execution should continue, it is "skeptical of the macro environment required to deliver on the current elevated multiples embedded in each stock."
- Superior Energy (SPN -1.2%) is downgraded to Neutral from Overweight with a $13 price target, with JPM saying SPN has faced several challenges in recent quarters and likely will have a difficult H1, although cost adjustments should provide some support to the company in H2.
- Now read Anadarko, Antero upgraded; Southwestern, EP Energy cut at J.P. Morgan
Thu, Mar. 31, 8:56 AM
- Superior Energy (NYSE:SPN) says it is eliminating its quarterly dividend, a move the company says is consistent with its goal of preserving cash during the oil downturn.
- SPN also says its executives will take a voluntary 15% base salary reduction.
- However, shares are upgraded to Overweight from Neutral with a $15 price target, raised from $8, at Simmons, which cites SPN’s aggressive actions taken to streamline its business which should position the company well for the eventual recovery, among other factors.
Fri, Mar. 18, 12:24 PM
- Patterson-UTI (PTEN -5.4%), Superior Energy Services (SPN -6.5%) and Forum Energy Tech (FET -3.3%) are downgraded to Neutral from Buy at Citigroup, which believes the market may have gotten ahead of itself for the stocks.
- “For those already reflecting recovery multiples, we expect oil betas to begin diminishing or the stocks to simply take a pause in the absence of additional catalysts near term," Citi analyst Scott Gruber writes.
- The firm maintains its Buy ratings on Halliburton (HAL -1.1%) and U.S. Silica (SLCA -3.5%), saying the consensus 2018 recovery earnings estimates for the two high-quality companies remain too low.
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.
Mon, Feb. 22, 5:40 PM
Sun, Feb. 21, 5:35 PM
Fri, Jan. 15, 6:16 AM
- Superior Energy (NYSE:SPN) declares $0.08/share quarterly dividend, in line with previous.
- Forward yield 3.13%
- Payable Feb. 23; for shareholders of record Feb. 1; ex-div Jan. 28.
Superior Energy Services, Inc. provides oilfield services and equipment. It offers drilling, completion and production-related services worldwide through drilling products and well intervention services and tools. The company operates its business through the following segments: Drilling... More
Sector: Basic Materials
Industry: Oil & Gas Equipment & Services
Country: United States
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