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)
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.
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. 17, 2014, 5:40 PM
Jul. 28, 2014, 3:28 PM
- Basic Energy Services (BAS +1.8%) recovers a bit of Friday's 10% loss, as shares are upgraded to Accumulate from Neutral at Global Hunter after the "overreaction to a fairly benign [Q2] earnings report."
- Q2 results were below expectations in fluid services, and outlook commentary was somewhat disappointing in completion and remedial services relative to elevated expectations, the firm says in explaining the reason behind Friday's fall.
- The conservative C&R guidance and dialed back fluids services assumptions may have left ample room for positive revisions to top line guidance, the firm says.
- Raymond James also raises BAS shares to Outperform from Market Perform.
Jun. 10, 2014, 9:13 AM
Jun. 9, 2014, 5:02 PM| Comment!
Apr. 15, 2014, 2:44 PM
- Basic Energy Services (BAS +3.8%) is upgraded to Hold from Sell with a $27 price target, up from $19, at Wunderlich, citing better market conditions while noting that much of the improvement is priced in.
- With weather improving from early 2014 and E&P budgets remaining robust, the firm believes most E&P companies are cramming 12 months of solid activity into 9-10 months, and the increase in spending should benefit players like BAS.
- The company's monthly update saw strong growth as the weather improved.
Apr. 8, 2014, 11:32 AM
- Basic Energy Services (BAS +3.5%) says it expects Q1 revenue to come in 8%-9% higher Q/Q compared to previous guidance of 4%-5%, mainly attributable to better than expected utilization levels across all business segments along with moderate weather conditions.
- BAS also reports an increase in well-servicing rig hours, rising to 74,800 in March from 68,100 in February, and a 76% rig utilization rate in March vs. 73% in February and 74% in March 2013.
Feb. 20, 2014, 12:47 PM
Jan. 14, 2014, 9:58 AM
- Basic Energy Services (BAS +3.6%) reports that its December activity was ahead of plan, and increased work toward the end of the month leads to higher revenue guidance.
- BAS now expects Q4 revenues to fall 5%-6% Q/Q vs. its previous guidance of a 7%-8% decline; "We expect this healthier pace of activity to continue this year as many of our customers have announced increases in their spending for 2014."
- Cowen notes that with nearly 50% of revenue tied to the Permian, BAS is well positioned to benefit from increases in spending; with high operating and financial leverage, BAS is one of the most targeted ways to gain exposure to changes in supply/demand for services in the Permian (Briefing.com).
Nov. 18, 2013, 2:29 PM
- Onshore-focused oil service companies have been strong stock gainers YTD, but Global Hunter thinks it's prudent to take some chips off the table as it downgrades Halliburton (HAL -2.9%), Pioneer Energy (PES -5.3%), Key Energy (KEG -4.2%), Basic Energy (BAS -1.7%) and Superior Energy (SPN -2.5%) to Neutral (Briefing.com).
- The firm sees activity up next year, but believes expectations of 10%-plus D&C capex growth and 20%-plus EBIT improvement on ~40% incremental margins for the group has set a high bar, particularly when pricing is unlikely to move back in favor and given its belief the rate of change to Street numbers likely has a bias lower.
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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