Seeking Alpha: RPC Hoping That The Worst Is Soon To Be Past

I didn't see a reason to be in a rush to buy RPC (NYSE:RES) back in February and the slightly negative move in the shares since then doesn't really have me regretting that viewpoint. Investors certainly could have done worse in the oil services space (C & J Energy Services (NYSE:CJES), Basic Energy (NYSE:BAS), and Superior (NYSE:SPN) have all fared worse) and not too many names have done all that much better during this awful stretch, but this is still a tough market for bulls.

I continue to believe that RPC is an uncommonly well-run company in the space and a prime beneficiary of a recovery in rig counts and increased well completions … whenever that takes place. To that end, I like RPC for its strong leverage to a U.S. onshore recovery and the limited downside created by its strong balance sheet and very strong service reputations. Names like Basic Energy, Key Energy (NYSE:KEG), Superior, and even Weatherford (NYSE:WFT) offer more upside punch to a sharper turnaround, but with RPC it really doesn't seem that investors need to worry about survivability, accountability, or operational performance.

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RPC Hoping That The Worst Is Soon To Be Past

Seeking Alpha: Weatherford Slowly Changing The Tone

To be clear from the outset, Weatherford (NYSE:WFT) has given investors ample reason over the years to hate the management and have nothing to do with the stock. It's likewise entirely fair to say that a leader who presided over the making of an epic mess is rarely the person to lead the company out of it.

That said, I believe there is more than a little stubbornness out there regarding Weatherford and I believe that ignoring the cost and management improvements made by the company is a mistake. The current state of the North American onshore market is lousy, but I had already expected that, and I still believe that Weatherford shares ought to trade closer to the mid-teens. There is most definitely a real risk that the onshore market(s) stay weaker for longer, but I likewise believe there is an opportunity for a new and improved Weatherford to emerge as a viable new Top Three player in a market that wants one.

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Weatherford Slowly Changing The Tone

Seeking Alpha: Weatherford Still Pinning Its Hopes On Better Performance

Say this much for Weatherford (NYSE:WFT) - expectations had gotten tamped down enough that the stock has actually managed to outperform peers like Schlumberger (NYSE:SLB), Halliburton (NYSE:HAL), and Baker Hughes (NYSE:BHI) since my last piece. Of course, stretch that comparison out over time, and Weatherford emerges as a notable laggard. This underperformance was well-deserved, as the company consistently posted underwhelming performance from a business that was pretty much structurally incapable of doing well (by virtue of being more focused on more competitive and/or lower value-added segments).

This was supposed to be a new beginning for a leaner, better-focused Weatherford, but then the North American onshore market had its legs swept out from under it by a sudden and significant drop in oil prices. So here we are, looking at first quarter earnings, where Weatherford once again missed, and contemplating the future. I continue to believe that the company is undervalued, even if it takes until 2018 for profits to recover to last year's level, and I believe that ignores the potential upside of a business that may be more stable than believed, and better able to grow when oil prices and activity levels recover.

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Weatherford Still Pinning Its Hopes On Better Performance

Seeking Alpha: Weatherford Fixing Its Credibility Gap, But Now Market Conditions Weigh Heavily

Things were going pretty well for Weatherford (NYSE:WFT) six months ago. Management was making real progress with its efforts to streamline the business and reduce costs and talk of substantial free cash flow generation was just what Wall Street wanted to hear.

And then it all went south. Management communication issues over its free cash flow guidance brought back bad memories for a lot of investors and the steep fall in oil prices has gutted E&P budgets for 2015 and expectations for earnings in the oil services sector.

I continue to believe that Weatherford is a legitimate self-improvement story. While the sharp decline in oil prices will lengthen the timeline to meaningful cash flow, management has continued to make good decisions with respect to the company's cost base and business mix.

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Weatherford Fixing Its Credibility Gap, But Now Market Conditions Weigh Heavily

The Motley Fool: Weatherford International Rebuilding Trust, but Needs to Rebuild the Business

For a company with a long and unfortunate history of disappointing its shareholders, Weatherford International has come back strong on the back of a comprehensive turnaround and restructuring plan that is seeing the company sell or spin off lower margin and less competitive businesses. Weatherford is by no means finished with this process and still needs to prove that it can maintain its leadership in areas like tubular running, cementation, and artificial lift as well as improve operations like pressure pumping. Even so, and despite a good run over the past year, these shares still hold some appealing upside.

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Weatherford International Rebuilding Trust, but Needs to Rebuild the Business

Seeking Alpha: More Addition By Subtraction At Weatherford

I've long been fond of the expression "if it doesn't make dollars, it doesn't make sense," and I'm glad to see that Weatherford (NYSE:WFT) has gotten serious about adopting a similar philosophy. Back in March, the company sold its pipeline and specialty service business to Baker Hughes (NYSE:BHI) and before that the company sold its Russian ESP business for about $400 million. Now Weatherford has sold its Russian and Venezuelan drilling rigs and in doing so not only got a decent price but also improved the prospects for its drilling rig IPO. Weatherford has done quite well on the back of increasing optimism around energy services and for its specific restructuring opportunities and there is still more upside from here.

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More Addition By Subtraction At Weatherford

Seeking Alpha: Dover Still Excellent, But Not Currently A Bargain

If you love drilling into the minutiae of what industrial companies do, Dover (DOV) can be a bonanza. With nearly 30 major operating businesses, Dover is not particularly easy to benchmark. Luckily, the company's consistent earnings quality, strong margins, and good returns on capital make up for some of the difficulties in really drilling down into the details. Dover is looking at some good opportunities in areas like refrigeration, fluid control, and energy, but the shares already reflect a pretty high level of Wall Street affection. Though Dover isn't the most expensive quality industrial out there, I'd likely wait for a better discount to fair value before jumping in with my own money.

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Dover Still Excellent, But Not Currently A Bargain

Seeking Alpha: Amidst Restructuring Efforts, Weatherford Still Thinking About Growth

Energy services company Weatherford (WFT) has come a long way since my February 2013 piece, with the company not only putting tax and accounting issues behind it, but also moving forward with a sizable restructuring effort. Weatherford is selling, spinning off, or shutting down non-core operations where either the company's market position or margin potential isn't good enough to warrant ongoing operations.

Amidst these turnaround efforts, though, the company is not ignoring the need to keep the company in position for future growth.

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Amidst Restructuring Efforts, Weatherford Still Thinking About Growth

The Motley Fool: The Clouds Are Parting for Weatherford International

The first-quarter earnings report for the fourth-largest energy services provider, Weatherford International (NYSE: WFT  ) , was not flawless in terms of growth or margins. What was, and is, more important is that the company has very clearly put itself on a path of serious self-improvement and is remaking itself into a high-margin provider of services with relatively little overlap with the big three -- Schlumberger (NYSE: SLB  ) , Halliburton (NYSE: HAL  ) , and Baker Hughes (NYSE: BHI  ) .

With this progress, the penalty to Weatherford's earnings before interest, taxes, depreciation, and amortization multiple no longer seems as appropriate, and these shares continue to look undervalued as an improving play on unconventional reservoirs.

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The Clouds Are Parting for Weatherford International

Seeking Alpha: Superior Energy Services Needs U.S. Land To Turn

Investors have gotten quite a bit more bullish about prospects for the energy service companies over the last three to six months, largely due to increased optimism that U.S. land conditions really are improving. That should be good news for Superior Energy Services (SPN), as should the signs that deepwater Gulf of Mexico activity is turning around. The real question for Superior, though, is whether the company can better leverage its "integrated lite" operating structure and start delivering better returns for shareholders.

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Superior Energy Services Needs U.S. Land To Turn

Seeking Alpha: Parker Drilling Starting Slow, But On A Better Path

I liked Parker Drilling (PKD) and its turnaround/self-improvement story about six months ago, and while the idea worked pretty well for a short time (the stock rose about 30% in the first month after that article), performance has trailed off noticeably since March as the company warned that 2014 would be off to a slower start. With that, the shares have been left behind by other small-cap energy service providers and contract drillers.

The sluggish start to 2014 is disappointing, but the Parker Drilling story is still worth a closer look. The company is the leading player in domestic drilling barges, earning a dayrate premium for the quality and capabilities of its rigs. The company's international land rig business is seeing better utilization, and there is a significant opportunity in the tool rental business from expanding operations in the Gulf of Mexico (or GOM) and improved margins in the international business (or ITS). A fair value of around $8 may not scream "must own" today, but it is worth a look as a relative laggard in the space.

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Parker Drilling Starting Slow, But On A Better Path

The Motley Fool: Stormy Weatherford International Ltd Moving in the Right Direction

If you own shares of Weatherford (NYSE: WFT  ) , there have likely been many occasions that left you scratching your head and wondering, "what possessed me to do that?" To management's credit, though, it is no longer pursuing a strategy of bigger-must-be-better and is instead examining where the company's core competencies and profit opportunities really lie.

The second half of 2013 was volatile and largely disappointing as the company missed margin and cash flow generation guidance. This next year is likely to be challenging as well, as the company looks to enact a large headcount reduction as well as the sale/spinoff of multiple non-core businesses. Weatherford's many self-inflicted wounds have obscured that it does in fact do many things well, and investors looking to play a still-undervalued turnaround story in oil services may want to check this one out.

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Stormy Weatherford International Ltd Moving in the Right Direction

Seeking Alpha: Superior Energy Services Looks To Live Up To Its Name

Energy service stocks have had a pretty good run in 2013, even despite the fact that the expected second-half recovery in rig counts and activity doesn't seem to be materializing and pricing pressures are combining with cost inflation to squeeze margins in the U.S. land market. Even though Superior Energy Services' (SPN) shares are up more than 30% over the last twelve months, the stock still appears to be undervalued on the basis of good growth in offshore and international markets and the prospects for a recovery in the U.S. onshore market in 2014. Couple that with strong margin discipline and a commitment to return capital to shareholders, and I believe this name still deserves consideration from investors looking to add energy exposure.

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Superior Energy Services Looks To Live Up To Its Name

Seeking Alpha: There's Still Room For Parker Drilling To Outperform

Parker Drilling (PKD) has been a public company for quite some time, but the company hasn't had what you'd call a consistent record of performance. Energy services, and drilling particular, has always been a volatile, cyclical business, but I would estimate that the company has only earned its cost of capital once or twice over the last decade. Maybe it's not altogether surprising then that the stock has stayed pretty much stuck in a band between $4 and $6 over the past four years.

These shares dipped slightly below that range in April of this year, only to exceed it slightly in July and here again more recently, but I believe these shares may yet be undervalued. Demand for drilling barges in the Gulf of Mexico has picked up, and so too has demand for rental tools (particularly for deepwater activities). At the same time, I think the company's progress with its international operations still has not been fully appreciated by the Street. Although Parker Drilling remains a "show me" story, I wouldn't be surprised if these shares trade between $8 and $9 before too much longer.

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There's Still Room For Parker Drilling To Outperform

Investopedia: Weatherford Burning Through Its Benefits Of The Doubt

Broadly speaking, there are two valid reasons to own Weatherford (NYSE:WFT). First, you believe that the company's position in markets like artificial lift, casing, and tool rental coupled with more disciplined management will lead to solid revenue and profit growth. Second, you believe that the company's process of getting its act together, including resolving tax/reporting issues, a FCPA investigation, and working capital management, will lift the penalty discount on the shares and/or prompt a buyout.

Judging by Weatherford's second quarter earnings, and the market's reaction, it seems like the second notion is in the lead. This wasn't a great quarter for the service sector, but Weatherford's quarter was pretty poor on an operating basis, and there's only just so much grace period that investors will give this management team. While I'm still content to own these shares on the basis of what I think is the underlying value to the business, the company needs to get its act together quickly.

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Investopedia: Baker Hughes Still Playing Third Fiddle

You don't have to the biggest or the best to succeed in energy services, but you do have to execute on the opportunities in front of you. On that score, Baker Hughes (NYSE:BHI) still has work to do. Although the company is making some progress with its North American pressure pumping business and the Mideast continues to be a solid source of growth, there is still the risk of a one-two punch from softer margins and less E&P spending than expected. Baker Hughes is still undervalued today and arguably has more upside from better management execution, but it's tough to work up a lot of enthusiasm for the stock.

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Investopedia: Halliburton Has Gotten Interesting Again

Slipping oil prices have definitely taken the steam out of what had been a strong seasonal move in many oil service and equipment stocks. Even so, many in the oil and gas industry seem to think that rig counts have bottomed and that exploration and production activity will start picking up again in 2013 barring a major economic downturn. While the timing and magnitude of that recovery does present some risk to Halliburton (NYSE:HAL) investors, today's valuation looks like a pretty attractive entry point to play an eventual recovery in the services and equipment sector.

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Investopedia: GE Pays Up To Get Into Another Attractive Energy Business

General Electric (NYSE:GE) is not messing around when it comes to making itself into a leading manufacturer of equipment for the oil and gas industry. Having already established a strong presence for itself in areas like subsea and surface equipment, GE is taking a deeper dive into artificial lifts with its high-priced acquisition of Lufkin Industries (Nasdaq:LUFK).

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Seeking Alpha: Forum Energy Technologies Building A One-Stop Energy Shop

In recent years, major energy sector equipment manufacturers like Cameron (CAM), National Oilwell Varco (NOV), and FMC Technologies (FTI) have had to make way for new competitors. Most investors are probably already familiar with General Electric's (GE) ambitious growth in the offshore/subsea equipment sector, but Forum Energy Technologies (FET) may not be as familiar to readers. While there are certainly ample risks attendant with a debt-fueled roll-up strategy in a very cyclical industry, investors may want to get up to speed on a company that looks to offer a rare "soup to nuts" array of equipment and exposures in the energy space.

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Forum Energy Technologies Building A One-Stop Energy Shop

Seeking Alpha: Patience With Weatherford Should Pay Off

Energy services company Weatherford (WFT) has shown it has ample capabilities in digging deep holes - both for its oil and gas clients and for investors. Years of "growth at any cost" spending, lax (if not wholly inadequate) accounting, and various other accounting misdeeds created some large problems that have been coming home to roost more recently.

There looks to be a light at the end of the tunnel, though, and I don't believe it's an oncoming train. Weatherford has largely cleaned up its tax issues, appears close to resolving its internal accounting control problems, and should soon have closure on matters related to illegal transactions with sanctioned countries. More significantly, management has smartened up about capital allocation and profitable growth, and divestitures should lead to a more focused, more profitable, and less debt-ridden firm.

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Patience With Weatherford Should Pay Off