Mon, May 11, 11:49 AM
- It's time to "take profits and... a summer vacation" in onshore oil services stocks such as National Oilwell Varco (NOV -2.8%), Weatherford International (WFT -2.7%), Patterson-UTI Energy (PTEN -3.7%) and RPC (RES -4%), Citigroup's Scott Gruber says.
- The onshore service stocks are discounting at least 400 horizontal rigs returning to service, yet quick-to-market tight oil means supply concerns likely will manifest as soon as the rig count begins to rally, the firm says.
- Citi downgrades NOV to Sell from Neutral given risk of backlog cancellations, continued EPS compression and valuation, and believes a recovery multiple is not warranted for the stock until backlog growth resumes; the firm also cuts RPC to Sell, reiterates its Sell rating on Helmerich & Payne (HP -2%), and lowers WFT and PTEN to Neutral from Buy.
Wed, Apr. 29, 11:59 AM
- National Oilwell Varco (NOV +1%) is downgraded to Underweight from Equal Weight with a $53 price target at Morgan Stanley, following mixed Q1 results and reflecting the expected steep decline in the demand for NOV's offshore drilling equipment products.
- While NOV's emerging FPSO and wellbore technologies divisions have momentum, they are unlikely to compensate, the firm says, adding that NOV's expansion into floating production solutions offers great promise but "more is needed for this to be a meaningful needle mover."
- Stanley sees a 2015 rebound for wellbore technologies and expects the rig aftermarket and C&P solutions to turn the corner in late 2016, so it says its downgrade is a relative call vs. other earlier cycle peers.
Tue, Apr. 28, 8:26 AM
- National Oilwell Varco (NYSE:NOV) +0.9% premarket after Q1 earnings beat expectations on solid sales growth in the rig segment, its largest contributor to revenue.
- Q1 sales in the rig segment grew 12% Y/Y to $2.52B but other segments fell: revenue in the wellbore technologies segment fell 8% to $1.17B, revenue in the completion and productions solutions business fell 5% to $948M, and sales in the rig aftermarket segment fell 4% to $719M.
- Ending backlog for capital equipment orders at NOV's rig systems business was $10.43B, down 17% Q/Q and down 31% Y/Y; backlog for the completion and production segment was $1.46B.
- NOV says it performed well in the quarter despite “the significant downturn in oil price and oilfield activity” and will continue with cost-reduction initiatives to “mitigate the impact of declining revenues,” which it expects to continue through at least the new few quarters.
Tue, Apr. 28, 7:01 AM
Mon, Apr. 27, 5:30 PM
- AET, AGCO, AIXG, AKS, ALLY, AMG, AUDC, AUO, AXE, BMY, BP, BSX, CARB, CAS, CBR, CIT, CMI, CNC, CNX, COH, CPLA, CRY, DFRG, DORM, ECL, ENTG, ETR, F, FBC, FDP, FLWS, FMER, GAS, GLW, GPI, HMC, HSP, ICLR, IDXX, IIVI, IPGP, IPI, JBLU, JEC, LRN, LXK, MAS, MDXG, MHFI, MRGE, MRK, NCI, NEO, NOV, OFC, OSK, PAG, PFE, PH, PHG, POR, SALT, SC, SIR, SIRI, ST, SVU, TMUS, TXT, UBSI, UPS, UTHR, VDSI, VLO, WAT, WDR, WHR, WWW, WYN, XRS, YNDX
Thu, Apr. 23, 5:49 PM
- At least a half-dozen major industrial companies - including GE, Caterpillar (NYSE:CAT) Siemens (OTCPK:SIEGY), Honeywell (NYSE:HON), Dover (NYSE:DOV), Danaher (NYSE:DHR) and Emerson Electric (NYSE:EMR) - are said to be weighing offers for oilfield services assets worth $5B-$10B that Halliburton (NYSE:HAL) is preparing to sell ahead of its pending merger with Baker Hughes (NYSE:BHI), Bloomberg reports.
- HAL reportedly will send offering materials to those companies, as well as P-E firms and rival oilfield services providers, in the coming weeks; first up likely will be the drill bits unit and another that uses data to track and steer the direction of drills.
- These companies could own an edge over oilfield services companies that analysts have pegged as logical bidders for HAL’s castoffs - such as National Oilwell Varco (NYSE:NOV) and Superior Energy Services (NYSE:SPN) - because HAL might not want to give any more market share to companies that already offer the same services, preferring to sell to new players entering the market.
Wed, Apr. 22, 7:57 AM
- National Oilwell Varco (NYSE:NOV) appoints Scott Duff, currently VP and Chief Accounting Officer, as interim CFO following news that Jeremy Thigpen is leaving the company to become CEO of Transocean.
- Duff held accounting positions at KPMG, Ernst & Young and SBC before joining NOV in 2004, and has served as NOV's VP and Chief Accounting Officer since 2014.
- Thigpen has spent 18 years at NOV, serving as CFO since 2012.
Tue, Apr. 21, 6:57 PM
- Transocean (NYSE:RIG) names Jeremy Thigpen as its new President and CEO effective immediately, succeeding interim CEO Ian Strachan.
- Prior to joining RIG, Thigpen spent his career in various roles at National Oilwell Varco (NYSE:NOV) and became senior VP and CFO in 2012; he joined NOV in 1997.
- Strachan - also RIG's Chairman - will retire from the board at the end of his term at the 2015 annual general meeting following 16 years at the company.
- RIG -0.7% AH.
Fri, Feb. 27, 7:57 AM
Thu, Feb. 26, 6:38 PM
- Credit Suisse says the recent rally in oil prices and in oilfield services stocks (NYSEARCA:OIH) is a classic dead cat bounce, and that as soon as U.S. storage gets full - and it is close - crude prices will fall, bringing expectations and stocks down with it.
- The firm says its sector outlook is increasingly negative as companies report increased pricing pressure, a record drop in the activity barometer of the rig count, and offshore rigs and projects confronting headwinds that could take a couple of years to fix.
- Relevant stocks: SLB, HAL, BHI, CAM, HLX, SPN, NOV, FET, DRQ, FTI, OIS
Mon, Feb. 23, 12:07 PM
- Among the additions to the index (which fuels the IBLN ETF) are EMC, Google (GOOG, GOOGL), Goodyear (NASDAQ:GT), Mohawk Industries (NYSE:MHK), PVH, Time Warner (NYSE:TWX), and Yahoo (NASDAQ:YHOO). There are three health care additions as well: Allergan (NYSE:AGN), Amgen (NASDAQ:AMGN), and HCA. The lone energy name added is Consol Energy (NYSE:CNX).
- Exiting the index are energy names Halliburton (NYSE:HAL) and National-Oilwell Varco (NYSE:NOV), along with healthcare companies AbbVie (NYSE:ABBV), Aetna (NYSE:AET), Humana (NYSE:HUM), and Tenet Healthcare (NYSE:THC). Citigroup (NYSE:C), CBS, Crown Castle (NYSE:CCI), and Michael Kors (NYSE:KORS) round out those subtracted.
- IBLN tracks the highest-conviction S&P 500 picks by hot-handed billionaires who built their fortunes through hedge funds and investing. The list of billionaires tracked is updated each October, and the equity components are rebalanced each quarter after sifting through regulatory filings.
- IBillionaire Index Rebalance
Wed, Feb. 4, 3:47 PM
- National Oilwell Varco (NOV -3.6%) is slammed by at least three analyst downgrades and multiple price target reductions, as Q4 results show a declining order book that the analysts believe will remain challenged throughout 2015.
- In cutting shares to Neutral from Accumulate with a $49 price target, down from $74, Global Hunter foresees minimal newbuild orders for both onshore and offshore rigs until oil prices have rebounded substantially and rig counts have begun to recover, which it does not expect in the next few quarters.
- Credit Suisse lowers its share price target to a Street-low $40, as guidance of ~$7B in revenue out of backlog this year against an outlook of less than $2B in orders this year and the same in 2016 points to a dramatic drop in rig systems revenues.
Tue, Feb. 3, 9:17 AM
- National Oilwell Varco (NYSE:NOV) -2.3% premarket after posting better than expected Q4 earnings on strong growth in its wellbore technologies and productions segments, but warning of weakness this year tied to the decline in oil prices.
- "Looking into 2015 we face a very challenging market. Our customers are sharply reducing their oilfield activity and expenditures," CEO Clay Williams says.
- Sales in the rig segment, NOV's biggest, grew 7% to $2.56B, while rig-aftermarket revenue rose 12% to $850M; wellbore technologies revenue grew 12% to $1.53B, while sales in the completion and productions solutions business gained 15% to $1.33B.
- But in a clear sign of the industry downturn, the backlog for NOV's biggest division, rig systems, fell 13% Y/Y and 17% Q/Q to $12.5B; the backlog for completion and production equipment rose 9% to $1.78B.
Tue, Feb. 3, 7:05 AM
Mon, Feb. 2, 5:30 PM
Wed, Jan. 28, 12:33 PM
- National Oilwell Varco (NOV -4.9%) hits a 52-week low after shares are downgraded to Underperform from Neutral with a $43 price target, down from $60, at Credit Suisse, which says NOV appears to be the most negatively impacted stock by many negative data points coming through its 2-3 year outlook.
- The firm says NOV is an exceptionally well-managed company, but believes the rig systems business - 44% of estimated 2014 EBIT - will be hurt by an expected lack of new deepwater rig orders through 2016 and its exposure to slowing North American and international activity due to lower oil prices.
NOV vs. ETF Alternatives
National Oilwell Varco Inc is a provider in the design, manufacture and sale of equipment and components used in oil and gas drilling, completion and production operations, and the provision of oilfield services to the upstream oil and gas industry.
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