Mon, Apr. 13, 12:44 PM
Mon, Apr. 13, 11:24 AM
- "No one (including us) has a really good handle on energy industry earnings estimates over the next few years," says J. Marshall Adkins and team at Raymond James, downgrading Cameron International (CAM -1%), Nabors Industries (NBR -0.3%), Schlumberger (SLB -0.8%), FMC Technologies (FTI -1.5%), and Basic Energy Services (BAS -6.6%).
- Nevertheless, Adkins gives it his best shot and his numbers are well below the Street for 2015 and 2016. Then there's valuations, and the recent surge in prices has left them less than compelling.
- Noted is substantial pricing pressur and overcapacity in many business lines, a more prolonged downturn internationally, and offshore activity not expected to see even a moderate uptick for several years.
- Source: Barron's
- Previously: Schlumberger slips as Raymond James heads to the sidelines (April 13)
- Previously: Raymond James throws in the towel on oil services (April 13)
Mon, Apr. 13, 8:48 AM
- Alongside its downgrade of Schlumberger, Raymond James cuts Basic Energy (NYSE:BAS), FMC Technologies (NYSE:FTI), and Cameron (NYSE:CAM) to Market Perform from Outperform.
- Nabors Industries (NYSE:NBR) is lowered to Outperform from Strong Buy.
- The OIH is up marginally YTD, but off more than 35% from last summer's high.
- Previously: Schlimberger slips as Raymond James heads to the sidelines (April 13)
Fri, Mar. 27, 3:58 PM
- While Deutsche Bank analysts see oil poised for a modest recovery, they nevertheless downgrade Pioneer Energy (PES -8.1%) and Precision Drilling (PDS -3.7%) to Hold from Buy, believing that some of the traditional early cycle winners - specifically land drillers - will trade up in the near-term but the strong earnings recovery required to justify such a move will disappoint.
- But the firm does not think investors should avoid all oil services stocks, saying well service companies such as Basic Energy Services (BAS -2.8%) and Key Energy Services (KEG flat) could be the biggest beneficiaries, actually helped by a more cautious environment in which operators can generate high returns and quick paybacks by enhancing production from existing wells.
Thu, Feb. 19, 10:56 PM| Comment!
Wed, Feb. 18, 5:35 PM
Mon, Feb. 2, 5:57 PM
- "It’s not the darkest just before the dawn... it’s the darkest in the middle of the night" for the oilfield services stocks, Wunderlich's Jason Wangler writes in forecasting more pain ahead for Basic Energy Services (NYSE:BAS), Key Energy Services (NYSE:KEG), Patterson-UTI (NASDAQ:PTEN) and Pioneer Energy Services (NYSE:PES).
- The firm sees the large amount of equipment to be delivered in 2015 in an already oversupplied market, E&P companies focused on cost reductions, and dogfights for every dollar as "a recipe for a big leg down" in the oilfield services sector going forward.
- Wangler thinks BAS and KEG could be the most impacted given their Permian exposure and segments that are so focused on rig count levels; PTEN and PES also are likely have a tough road ahead given their business outside of drilling rigs has minimal contracts.
Dec. 23, 2014, 6:19 PM
- Although the energy sector led today's stock advance, a raft of companies downgraded by Global Hunter mostly took it on the chin - none more so than Key Energy (NYSE:KEG), which plunged 15% after shares were cut to Reduce from Neutral with a $1.50 price target that was reduced from $2.50.
- Also downgraded to Reduce were HERO -6.1%, NBR -3.2%, DO +1.3%.
- Lowered to Neutral were HAL +0.5%, GEOS -8.9%, HP -2.9%, BAS -2.5%, PKD -2.5%, BHI +0.6%, BBEP -0.2%, MEP +0.1%.
- Downgraded to Accumulate: PES -3.5%, PTEN -1.1%, NGLS +2.9%.
- The firm upgraded five stocks - ATW, NOV, OII, RES and SPN - all of which gained in today's trading.
Dec. 19, 2014, 12:45 PM
Dec. 16, 2014, 12:37 PM
- Wunderlich downgrades oil drillers Basic Energy Services (BAS +11.7%) and Key Energy Services (KEG -2.6%) to Sell from Hold and Pioneer Energy Services (PES +12.8%) to Hold from Buy, as the greatly reduced 2015 activity outlook likely hits all three very hard both operationally and financially.
- While the full impact of the oil price collapse has not been felt yet, "rest assured the pain is coming - and coming soon," the firm says, adding that the current downturn is even more scary than in 2008-09 because "this time it looks as if there is no basin or commodity to shift activity into."
- Nevertheless, a broad array of energy stocks have turned around from early morning losses to move higher.
Nov. 28, 2014, 7:48 AM
- The oil market will need to balance via slower U.S. shale growth and OPEC cuts at some later date (their next meeting is on June 5), says Goldman's Brian Singer, maintaining his team's WTI oil price outlook of $70-$75 per barrel for next year.
- Among the energy sub-sectors, refiners and pipelines continue as favorites, and five of Goldman's eleven energy and utilities stocks on the Americas Conviction Buy list are from midstream/refining: KMI, MWE, PAGP, TRGP, TSO (all are lower premarket on oil's tumble).
- Not buyers of oil services and E&P names, Goldman nevertheless does have favorites in these areas: CRR, BAS, RIG.
Oct. 27, 2014, 8:55 AM
- Goldman Sachs lowers its ratings on the oil services sector (NYSEARCA:OIH) to Cautious from Attractive and downgrades several specific stocks as it cuts its 2015 oil price forecast.
- U.S. land activity will suffer the biggest impact of the lower price deck, Goldman says, with customer capital spending expected to decline 6% next year vs. its prior outlook for a 9% increase; as a result, the firm now forecasts the horizontal U.S. rig count to fall 7%, or ~200 rigs, over the next 12 months.
- Goldman downgrades Parsley Energy (PE -3.8% premarket), Diamond Offshore (DO -1.5%), Laredo Petroleum (LPI -9%) and Basic Energy Services (BAS -6.2%) to Sell with sharply lower price targets; Patterson-UTI (NASDAQ:PTEN), Pioneer Energy (NYSE:PES) and Emerge Energy (NYSE:EMES) are cut to Neutral.
- The firm adds Oceaneering (OII -0.3%) to its Conviction Buy list; it also removes Halliburton (HAL -1.5%) from the list but maintains its Buy rating on the stock.
Oct. 23, 2014, 7:17 PM| Comment!
Oct. 22, 2014, 5:35 PM
- ADES, ALGN, ALTR, AMZN, BAS, BJRI, BLDR, BMRN, CB, CBI, CERN, CLMS, CLNE, CNMD, CPWR, CTCT, CYN, DECK, DLB, DV, ECHO, ELY, EW, FET, FII, FLS, FSL, GHL, GIMO, HBHC, HUBG, HWAY, IM, INFA, JNPR, KLAC, LOGM, LSCC, MSFT, MTSN, MXIM, MXWL, N, NCR, NTGR, OLN, P, PACB, PCCC, PDFS, PEB, PFG, PFPT, POL, QLIK, RMD, RUBI, RVBD, SHOR, SIVB, SPNC, SRCL, SWFT, SWN, SYNA, VMI, VRSN, WOOF, WRB, WRE, WRI
Oct. 17, 2014, 5:40 PM
Sep. 20, 2014, 8:25 AM
- Deutsche Bank analysts say they came away encouraged after hosting a series of one-on-one meetings with top energy companies; despite recent negative sentiment on the group, it paints an optimistic outlook for oil service companies, which see continued strength in the overall spending outlook from customers, even with the move down in commodity prices.
- Among the firm's top Buy-rated stocks in the group is Schlumberger (NYSE:SLB), down 12.5% since July 1; despite a slowdown from Libya, Iraq and Russia, the DB team likes the outlook for Latin America, with a recent contract win in Brazil in wireline and better pricing in its drilling contract, and eyeing start-up work in Mexico.
- DB also likes Hercules Offshore (NASDAQ:HERO), which has cratered 63% YTD; the company expects slow going in the Gulf of Mexico until the end of this year’s hurricane season, but opportunities look much brighter in 2015.
- Rounding out the firm's favorites: BHI, BAS, EXH, FET, PES.
BAS vs. ETF Alternatives
Basic Energy Services Inc provides well site services to oil and natural gas drilling and producing companies, including completion and remedial services, fluid services, well servicing and contract drilling in the United States.
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