Dec. 19, 2014, 12:56 PM
- The Delaware Supreme Court overturns a lower court ruling that had halted a deal by C&J Energy Services (CJES +0.7%) and Nabors Industries (NBR +6.1%), saying there was not enough evidence showing the C&J board had short-changed its shareholders.
- A lower court last month held up C&J’s merger with a Nabors unit, finding C&J’s board did not adequately shop the company; the situation was unusual in part because C&J's board and management would keep control, while the new entity is to be incorporated in NBR’s home of Bermuda and 53% controlled by NBR.
Dec. 5, 2014, 6:41 PM
- C&J Energy Services (NYSE:CJES) postpones a $650M acquisition loan intended to fund the purchase of a unit of Nabors Industries (NYSE:NBR) due to the uncertainty of current market conditions, but says the decision "in no way impacts our ability to finance or complete the deal.”
- C&J agreed in June to buy NBR’s completion and production services business in the U.S. and Canada in a cash and stock deal then valued at $2.86B; C&J obtained a $1.3B commitment from Citigroup to finance the cash portion of the transaction and refinance debt.
- CJES shares fell 3% to a record low of $13.49 in today's trade and have plunged 60% from this year’s peak of $33.78 at the end of June.
- Earlier this week, a unit of Atlas Energy (NYSE:ATLS) is said to have put on hold a $155M loan it was seeking to refinance debt.
Nov. 28, 2014, 10:35 AM
- Oil service companies mull OPEC's threat to the U.S. shale boom by its decision to hold production and the resulting tumble in oil prices.
- C&J Energy (CJES -17.6%), RPC, Inc. (RES -14.5%), GreenHunter Resources (GRH -9.5%), Seventy Seven Energy (SSE -16.5%), Pioneer Energy (PES -13%).
- Larger names: Halliburton (HAL -11.5%), Schlumberger (SLB -9.7%), Superior Energy (SPN -15%), Baker Hughes (BHI -9.1%).
Nov. 26, 2014, 5:37 PM
Nov. 25, 2014, 10:13 AM
- C&J Energy Services (CJES +3.6%) says it plans to appeal a Delaware court ruling that requires it to solicit offers from other buyers for 30 days before it can merge with a unit of Nabors Industries (NBR -0.5%).
- NBR announced in June that it would merge its completion and production business with CJES and receive $2.86B in cash and stock; the deal is structured as a Reverse Morris Trust, a transaction that allows a parent company to sell its unit in a tax-efficient manner.
- But CJES shares are higher, as investor appetite for the deal had been waning given the integration risk and less favorable industry outlook.
Nov. 24, 2014, 9:49 PM
- A Delaware court today ordered a 30-day hold on the C&J Energy (NYSE:CJES) acquisition of a Nabors Industries (NYSE:NBR) unit, finding C&J’s board did not adequately shop the company and telling it to feel out other potential buyers, WSJ reports.
- The deal, announced in June, was unusual as CJES was the nominal buyer, agreeing to pay NBR 62.5M shares and $940M in cash for the fracking services unit, but NBR is to retain control of the combined entity with a 53% stake to CJES shareholders’ 47%.
- The judge found that because CJES shareholders essentially were turning over control of their investment to NBR, the deal was subject to a corporate law theory that required the board to take steps to get the best possible price.
Nov. 11, 2014, 2:36 PM
- Nearly $17B in energy company debt has been sold in the U.S. so far this month, tapping into debt capital markets despite a rise in borrowing costs as they seek to refinance or pay off existing debt amid a slump in oil prices.
- Just this week, Chevron (NYSE:CVX) offered $4B in six tranches to repay commercial paper, while Freeport McMoRan (NYSE:FCX) sold $3B in bonds in part to refinance existing debt; last week's ~$10B of energy bonds sold included a $3B offer by ConocoPhillips (NYSE:COP) also intended for refinancing purposes.
- Other energy-related deals in the pipeline for the coming days include a new loan facility for C&J Energy Services (NYSE:CJES).
- Energy bonds have been under pressure in the past couple of weeks as oil prices skid; investors are worried that a further drop in oil prices could put pressure on the highly indebted companies in the sector and potentially trigger a wave of debt restructurings.
Nov. 10, 2014, 11:45 AM
- A new research report from Jefferies discusses four oil services stocks which it sees having huge potential upside, even as oil prices have taken a beating.
- Jefferies believes Schlumberger (NYSE:SLB) could be poised for years of solid growth despite the recent trend in oil pricing, and thinks the company will continue to drive margins on execution, technologies and efficiencies.
- Halliburton (NYSE:HAL) leads industry peers with North American margins of 18.2% and a plan to increase its allocation for its operations in North America.
- Baker Hughes (NYSE:BHI), which reported solid numbers for the quarter although some analysts were disappointed by margin guidance, while C&J Energy (NYSE:CJES) reported a very impressive earnings beat last week.
- The firm expects stock price increases of more than 40% for each of its selections.
Oct. 29, 2014, 5:44 PM
Oct. 29, 2014, 4:52 PM
Oct. 28, 2014, 5:35 PM
- ABX, ACGL, ACHC, ACMP, AEGN, AEM, AFOP, AHL, AIZ, AKAM, ALDW, ALL, ANIK, ARAY, ARII, ARRS, ASGN, ATML, AUY, AXS, BGC, BIDU, BLKB, BMR, CACI, CALX, CAR, CATM, CAVM, CBG, CBL, CEMP, CENX, CHDN, CJES, CLD, CLUB, CMO, CNW, CRL, CRUS, CSGP, CSII, CUZ, CW, CWT, DAC, DRE, DRIV, DWA, EQIX, EQY, ESRT, ESV, EXL, EXR, FBHS, FFIV, FISH, FLEX, FLTX, FMC, FNF, FORM, FORR, FR, GLUU, HBI, HOS, HT, IPI, IRG, ISIL, JDSU, KEX, KRFT, KS, LGCY, LNC, LOCK, LOPE, MAA, MANT, MASI, MDAS, MEOH, MET, MOBL, MTGE, MUR, NCLH, NE, NEU, NEWP, NSIT, OII, PDM, PEIX, PGTI, PPC, PRXL, PSMI, PVA, QGEN, QTM, QUIK, RFMD, RGR, RJF, RNG, RRC, RRTS, RST, SCI, SFLY, SGI, SIMO, SLCA, SPN, SPRT, SSNC, SSS, STR, SU, TEX, TFSL, TGB, TGI, THG, TRLA, TTMI, TTWO, UNM, V, VECO, VGR, VPRT, VR, WLL, WMB, WPZ, WSTL, WTW
Oct. 10, 2014, 6:55 PM
- Reports that Iran will follow Saudi Arabia in cutting oil prices likely will create "stiff headwinds" for companies in the oilfield services industry (NYSEARCA:OIH), according to a new report from Sterne Agee's Stephen Gengaro, though bigger players such as Schlumberger and Halliburton should hold out better than others.
- Although crude oil prices pared their big drops today, the analyst expects price weakness to continue in the short-term amid tensions within the OPEC cartel that are leading to an "apparent price war."
- While Gengaro expects minimal impact on oilfield activity for the balance of 2014, a continued slide in crude oil prices probably would hurt in 2015, especially in North America.
- Sector names finished broadly lower today: SLB -1.9%, HAL -5.2%, OII -0.5%, BHI -3.2%, SPN -3.9%, TTI -4.4%, CJES -3.5%, RES -6.2%, KEG +0.9%.
Jul. 30, 2014, 4:41 PM
Jul. 29, 2014, 5:35 PM
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Jun. 26, 2014, 9:17 AM
Jun. 25, 2014, 5:57 PM
- C&J Energy (CJES) +8% AH and Nabors Industries (NBR) +6.2% after the companies agree to merge, creating a diversified completion and production services provider.
- NBR will receive total consideration of $2.86B in cash and stock, comprised of ~62.5M CJES shares and $940M in cash; the combined company will retain the C&J Energy name and management team.
- CJES expects the deal to be accretive to EPS during the first full year of combined operations, as it will leverage identifiable cost and revenue synergies through the achievement of operational efficiencies and capex savings.
CJES vs. ETF Alternatives
C&J Energy Services Inc provides hydraulic fracturing, coiled tubing, well stimulation and cased-hole wireline services. The Company also manufactures refurbishes & repairs equipment's & provides oilfield parts & supplies to own & third-party customers.
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