- Nabors Industries (NYSE:NBR) -3.1% pre-market, one of eight oilfield service stocks downgraded at Raymond James, which says 2019 E&P cash flow and capex outlooks for the sector are far more bearish now than just a month ago.
- Ray Jay now expects overall initial U.S. E&P budgets to decline by 10%-15% Y/Y and that near-term consensus oilfield service estimates still need to come down, adding credit markets currently are not "accommodative for the more highly levered names."
- The firm downgrades eight stocks it says are most exposed to a short-term activity slowdown: NBR, CCLP, NCSM, RES, SPN, TTI, UNT and WFT.
- J.P. Morgan downgraded five oil servicers earlier this week, citing a moderating pace of U.S. activity.
- Source: Bloomberg First Word