Wed, Apr. 29, 10:44 PM
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
Thu, Feb. 19, 7:45 PM
- Three Houston-based oilfield service firms said today they are cutting hundreds of jobs across their businesses, the latest among companies in the sector that have announced more than 40K layoffs so far in response to lower oil prices.
- Parker Drilling (NYSE:PKD), with 3,400 employees at year-end 2013, said in its earnings conference call that it has reduced headcount by 8%, which could rise to 10% by the middle of 2015; CEO Gary Rich said PKD’s U.S. barge drilling business has been operating three or fewer rigs through the last two months and has seen daily rates decline.
- Key Energy Services (NYSE:KEG), with 8,400 employees, said on its earnings call that it has cut 25% of its functional support staff and has been consolidating and closing service facilities; CEO Richard Alario says he and other top managers are taking salary cuts.
- Oil States (NYSE:OIS), with 9K-plus employees, said it has cut an undisclosed chunk of its well services workforce and has been reviewing its staffing options.
Wed, Feb. 18, 4:57 PM
Tue, Feb. 17, 5:35 PM
- ABX, ACT, AMTG, ARII, ARRS, ASGN, AVG, AXLL, BGS, BJRI, CAR, CDE, CSLT, CVG, CW, CYNI, DENN, DTLK, ELNK, EOG, EQC, ETE, ETP, EXAM, FNF, HSTM, HT, IAG, IPI, KEG, KEYW, LHO, LOPE, MANT, MAR, MHLD, MIC, MRO, NVMI, OGS, OIS, PAAS, PCYC, PKD, REXX, RGP, SBRA, SCTY, SIX, SNPS, SSS, STR, SUN, SUNE, SXL, TERP, THRX, TILE, TRN, TS, UAM, WES, WGP, WMB, WPZ, XPO, YUME
Dec. 18, 2014, 9:59 AM
- RBC recommends increasing weightings and exposure to oil service stocks (OIH +2.5%) heading into 2015, as it says oil prices will start to improve in H2 of next year and that oil service stocks typically discount this move by 6-9 months.
- Down cycles such as 2000-02 and 2008-09 suggest North American land drillers and service companies provide the best returns off business cycle lows, RBC says as it expects a similar dynamic this time.
- RBC upgrades Key Energy (KEG +24.6%) and Superior Energy (SPN +7.5%) to Outperform, and downgrades FMC Tech (FTI +1.8%), Franks (FI +4.9%), Oceaneering (OII +0.2%) and Oil States (OIS +2.3%) to Sector Perform; the firm also says since 1985 three of the top five performing stocks off lows have been Patterson-UTI (PTEN +6.6%), Precision Drilling (PDS +4%) and Nabors (NBR +7.2%).
Nov. 14, 2014, 12:48 PM
- Oil services companies are mostly higher as Halliburton (HAL +1.7%) is indeed in talks to buy Baker Hughes (BHI +0.5%), a deal that would provide a jolt to oilfield services companies contending with falling oil prices: SLB +0.4%, OIS +1.2%, SPN +2.3%, CAM +0.2%, FTI -0.3%, NOV -0.6%.
- Sterne Agee analyst Stephen Gengaro calls a potential HAL-BHI combo a “HAL of a Frac-ing Deal," seeing several positives for HAL including strengthening its relatively weak position in artificial lift and production chemicals which are critical to enhancing HAL’s mature field strategy, enabling it to leverage its unparalleled U.S. pressure pumping logistics chain to enhance the efficiency of BHI’s operations, and providing the opportunity for significant cost savings which likely would total $600M-$750M or more.
- While antitrust concerns could force some divestitures, Gengaro does not believe it would prevent a deal from happening.
- Other potentially attractive M&A targets among oil services companies could include Dril-Quip (DRQ +0.7%), Frank’s International (FI +2.6%) and Oceaneering (OII -0.2%), Simmons & Co. says.
Oct. 30, 2014, 5:24 PM
Aug. 4, 2014, 2:17 PM
- Oil States International (OIS +1.5%) is upgraded to Outperform from Neutral with a $72 price target, up from $60, at Credit Suisse, whose confidence in OIS for both H2 2014 and the long-term is higher due to better than expected EBITDA margins posted in Q2 and guided for Q3, an all-time high backlog of nearly $600M, and a 1:1 book-to-bill ratio.
- The firm also believes the company's completion and services business should continue to see solid demand and 30%-plus incremental margins.
Aug. 1, 2014, 5:51 AM
Jun. 2, 2014, 12:50 PM
May. 20, 2014, 9:11 AM
- Oil States International (OIS) +2.9% premarket after RBC Capital upgrades shares to Outperform from Sector Perform with a $115 price target, up from $105.
- RBC expects OIS to benefit from the growth of subsea spending, and it believes the company could be a takeover target down the road, while its Civeo unit will be a unique yield vehicle with a potential REIT conversion.
May. 1, 2014, 5:13 PM
Feb. 19, 2014, 4:39 PM| 2 Comments
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OIS vs. ETF Alternatives
Oil States International Inc provides products & services to oil & natural gas companies. It operates in oil & natural gas producing regions, including onshore & offshore U.S., Canada, West Africa, North Sea, South America and Southeast & Central Asia.
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