Even the best companies can find that expectations get so high that it's almost impossible not to disappoint the Street. Helmerich & Payne (NYSE:HP)
is certainly one of the best companies in the energy services sector,
as its AC drive FlexRigs have allowed the company to claim leadership in
U.S. onshore contract drilling on the back of the surge in horizontal
drilling in unconventional shales. Helmerich & Payne was hardly the
only service company to sell off on calendar second quarter earnings but
the shares aren't strikingly cheap today, even considering the
company's growing international drilling business and its strong record
of dividend growth.
Read the full article here:
Have Expectations Exceeded Helmerich & Payne's Capacity To Outperform?
Showing posts with label Patterson UTI. Show all posts
Showing posts with label Patterson UTI. Show all posts
Wednesday, August 6, 2014
Thursday, April 17, 2014
Seeking Alpha: Unit Corp. Still Not Getting Its Full Due
About six months ago, I thought that Unit Corp. (UNT) was undervalued by about 20% to 25% as the company's awkward mix of E&P, land drilling, and midstream assets led it to being overlooked. The shares have risen more than 27% since then, with much of that coming on good fourth quarter results and a significant improvement in sentiment for land drillers and service providers. Enthusiasm over land drillers may be getting a little overdone, but Unit still looks too cheap on a sum-of-the-parts basis and offers worthwhile upside from its E&P drilling program.
Click the link for more:
Unit Corp. Still Not Getting Its Full Due
Wednesday, July 10, 2013
Investopedia: Best-Of-Breed Status Keeping Helmerich & Payne Near Fair Value
The past two- and five-year periods haven't been kind to the land drilling industry, but Helmerich & Payne (NYSE:HP) has fared quite a bit better than most. While rivals like Nabors (NYSE:NBR), Patterson-UTI (Nasdaq:PTEN), Precision Drilling (NYSE:PDS), and Pioneer Energy (NYSE:PES)
have seen their shares decline from between 30% and 70% over the last
two to five years, Helmerich & Payne is close to breakeven.
HP owes its success to a program of focused differentiation – namely, building high-spec rigs that not enable operators to drill the horizontal wells that are increasingly necessary to exploit oil and gas reservoirs, but to do so faster and with fewer drilling days. A significant recent increase in the dividend has demonstrated management's willingness to share success with shareholders, but the quality of this company is never far from the minds of Wall Street. Consequently, the shares don't look like a tremendous bargain today.
Please read the full article here:
http://www.investopedia.com/stock-analysis/071013/bestofbreed-status-keeping-helmerich-payne-near-fair-value-hp-nbr-pten-pds-pes.aspx
HP owes its success to a program of focused differentiation – namely, building high-spec rigs that not enable operators to drill the horizontal wells that are increasingly necessary to exploit oil and gas reservoirs, but to do so faster and with fewer drilling days. A significant recent increase in the dividend has demonstrated management's willingness to share success with shareholders, but the quality of this company is never far from the minds of Wall Street. Consequently, the shares don't look like a tremendous bargain today.
Please read the full article here:
http://www.investopedia.com/stock-analysis/071013/bestofbreed-status-keeping-helmerich-payne-near-fair-value-hp-nbr-pten-pds-pes.aspx
Thursday, August 4, 2011
Investopedia: Investors Gush Over Cameron
Although energy prices have stayed pretty healthy in 2011, the energy services and equipment sector has been waiting for big producers to move ahead with new projects. As time has ticked by, analysts and investors have lost some patience and increasingly pushed equipment order announcements into 2012 and beyond. Based on the second quarter, though, it looks like Cameron (NYSE:CAM) is starting to see some of those long-awaited orders hit its books.
Q2 Better on Many Fronts
Cameron reported that revenue rose 16% on a sequential basis, beating the average analyst estimate. The valve and measurement business was strongest in terms of reported growth (up 26% from the first quarter), while the drilling and production business continues to be the largest contributor to sales and profits and saw revenue rise 16% sequentially. The process and compression systems business saw more modest 5% sequential growth.
To read the full piece, click below:
http://stocks.investopedia.
Q2 Better on Many Fronts
Cameron reported that revenue rose 16% on a sequential basis, beating the average analyst estimate. The valve and measurement business was strongest in terms of reported growth (up 26% from the first quarter), while the drilling and production business continues to be the largest contributor to sales and profits and saw revenue rise 16% sequentially. The process and compression systems business saw more modest 5% sequential growth.
To read the full piece, click below:
http://stocks.investopedia.
Wednesday, May 4, 2011
Investopedia: Chesapeake Making The Best Of A Tough Situation
Here's a question for natural gas investors to ponder: How much growth do you really want? Natural gas prices are still low and reserves are a limited asset, so does it really make sense for these companies to cash out a meaningful amount of these assets too cheaply? Certainly, these companies need to fund their operations and establish enough production to hold valuable leases, but production at below-trend prices is a mixed blessing.
Chesapeake Energy (NYSE:CHK), one of the largest independent natural gas producers, continues to walk that tightrope while remaining very highly leveraged to future rises in natural gas. (For more, see Natural Gas Industry: An Investment Guide.)
Decent Q1 Performance
Chesapeake reported over 6% sequential production growth for the first quarter, with realized prices up about 2%. Within those numbers, the company reported strong growth in its oil and liquids production - up nearly 9% on a sequential basis and up 56% from last year.
To read the full piece, please click below:
http://stocks.investopedia.
Chesapeake Energy (NYSE:CHK), one of the largest independent natural gas producers, continues to walk that tightrope while remaining very highly leveraged to future rises in natural gas. (For more, see Natural Gas Industry: An Investment Guide.)
Decent Q1 Performance
Chesapeake reported over 6% sequential production growth for the first quarter, with realized prices up about 2%. Within those numbers, the company reported strong growth in its oil and liquids production - up nearly 9% on a sequential basis and up 56% from last year.
To read the full piece, please click below:
http://stocks.investopedia.
Wednesday, March 2, 2011
Investopedia: Hot Stocks To Start 2011
So far 2011 is off to a great start.
Fears of a U.S. federal government shutdown? No problem. North Africa and the Mideast in an uproar? Not to worry. Rising inflation and decreasing fears about equities? It's all good.
Not only have the markets climbed the wall of worry quite easily so far this year, they all appear to be using the same rope. The Dow Jones, S&P 500 and Nasdaq are all up about 5% so far this year. But as is always the case, markets operate like ducks on a pond - things seem quiet and steady on the surface, but there are a lot of little feet madly paddling away out of sight. With that in mind, let us look at some of the top performers in 2011.
Solar - The Sun Has Come Out Tomorrow
Solar carries the rap for being economical and attractive only because of heavy government subsidies - subsidies that will presumably go away in the newly frugal world of 2011. It's not bothering the stocks, though, as this sector is up more than 36% so far this year. While tiny solar companies have seen the sun shine, large players like Jinko (NYSE:JKS) and LDK (NYSE:LDK), with the former announcing a 23% sequential revenue jump in Monday's earnings report. (For more, see Top Solar Stocks To Watch.)
Continue to the full piece here:
http://stocks.investopedia.
Fears of a U.S. federal government shutdown? No problem. North Africa and the Mideast in an uproar? Not to worry. Rising inflation and decreasing fears about equities? It's all good.
Not only have the markets climbed the wall of worry quite easily so far this year, they all appear to be using the same rope. The Dow Jones, S&P 500 and Nasdaq are all up about 5% so far this year. But as is always the case, markets operate like ducks on a pond - things seem quiet and steady on the surface, but there are a lot of little feet madly paddling away out of sight. With that in mind, let us look at some of the top performers in 2011.
Solar - The Sun Has Come Out Tomorrow
Solar carries the rap for being economical and attractive only because of heavy government subsidies - subsidies that will presumably go away in the newly frugal world of 2011. It's not bothering the stocks, though, as this sector is up more than 36% so far this year. While tiny solar companies have seen the sun shine, large players like Jinko (NYSE:JKS) and LDK (NYSE:LDK), with the former announcing a 23% sequential revenue jump in Monday's earnings report. (For more, see Top Solar Stocks To Watch.)
Continue to the full piece here:
http://stocks.investopedia.
Tuesday, August 10, 2010
A Nabor-ly Deal For Superior Well Services
Give credit where credit is due - Nabors Industries (NYSE:NBR) is not messing around. Not content to just be the largest land-based driller in the world, the company is now moving more aggressively into services as well. With the acquisition of Superior Well Services (Nasdaq:SWSI), Nabors is definitely taking a significant step towards enhancing the breadth of services the company can offer.
The Deal
Before the open on Monday, Nabors announced that it was offering to pay $22.12 per share in cash in a tender offer for Superior Well Services. This deal has the support of Superior and roughly one-third of Superior's existing shareholders. All told, this will represent a roughly $900M cash outlay for Nabors, but the company will also be assuming over $160 million in debt on Superior's books.
For the full piece, please go to:
http://stocks.investopedia.
The Deal
Before the open on Monday, Nabors announced that it was offering to pay $22.12 per share in cash in a tender offer for Superior Well Services. This deal has the support of Superior and roughly one-third of Superior's existing shareholders. All told, this will represent a roughly $900M cash outlay for Nabors, but the company will also be assuming over $160 million in debt on Superior's books.
For the full piece, please go to:
http://stocks.investopedia.
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