this is HUGE! OIL MARKETS ARE LOVING IT!!!!!!!!!!!!!!!!!!
Patterson-UTI Energy, Inc., through its subsidiaries, provides onshore contract drilling services to major and independent oil and natural gas operators in the United States and Canada. The company operates through three segments: Contract Drilling, Pressure Pumping, and Oil and Natural Gas Net operating cash flow has increased to $235.68 million or 30.43% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -14.20%.
36.67% is the gross profit margin for PATTERSON-UTI ENERGY INC which we consider to be strong. It has increased from the same quarter the previous year.
The current debt-to-equity ratio, 0.30, is low and is below the industry average, implying that there has been successful management of debt levels. PATTERSON-UTI ENERGY INC reported earnings of $1.11 September 2015, the Company had an average of 99 drilling rigs operating in the United States and four rigs in Canada. For the three months ended September 30, 2015, the Company had an average of 105 drilling rigs operating in the United States and four rigs in Canada. five-year low of $12.81 and 66.7% off the five-year high of $38.43. The dividend yield of Patterson-UTI Energy Inc. stocks is 2.86%. 1) OIL stocks holding with 45$ oil, looks good for oil going forward. THE United States cut global output forecasts (SEPT 2 2015) and Russia, Saudi Arabia and other big producers signaled joint action to support the market. Hedge funds cut bets on falling WTI prices 2) “The market’s not as oversupplied as we think it is,” David Pursell, a managing director at investment bank Tudor Pickering Holt & Co. in Houston, said in a phone interview. “The news out of OPEC is more bullish, U.S. production is falling and demand is great right now.” it's market manipulation and not an equilibrium. Shorts have not been investing but driving. Even GS is not that crazy to think it can stay below 40. 3) OPEC assumes crude prices will rise by about $5 a year through 2020. That’s 80 dollar oil and a big return for those who are long. Production from nations outside the group will be 58.2 million barrels a day in 2017, 1 million lower than previously forecast, according to an internal report. The impact of low prices is “most apparent on tight oil, which is more price reactive than other liquids sources,” according to the report. 4) There have been $323 billion in announced or proposed oil-and-gas mergers so far this year, the most on record for a similar period by nearly $100 billion, according to Dealogic. Oil and gas is the third-most-active sector for M&A this year and has helped drive overall announced deal volume to $3.2 trillion world-wide, putting 2015 on pace to roughly match the record of $4.3 trillion set in 2007.
5) Jim Rogers said oil may be near the bottom when bad news Friday October 2, 2015 didn’t move oil stocks down with the barrel of oil falling a buck. Stocks actually rose with bad sentiment. Later that day oil had a huge run as a sector. A weakening dollar added support for oil, aside from bets that the U.S. oil rig count could tumble again this week after last week's unexpectedly sharp decline of 26 rigs. Global oil demand will grow by the most in six years in 2016 while non-OPEC supply stalls, according to a monthly U.S. energy report that suggests a surplus of crude is easing more quickly than expected. Cutting CAPX could meen demand in the future with out additions.
7 M&A activity in the oil-and-gas sector has continued apace despite a nearly 60% decline in oil prices since early last year. The sharp decline in oil prices in the past year has put a damper on many big energy producers' prospects, but that hasn't kept them from joining the gusher of mergers-and-acquisitions activity.
When companies are under pressure, the value of the so-called cost and other synergies that come from combining with rivals increases, said Jay Horine, head of North American energy investment banking at J.P. Morgan Chase & Co. There also is a natural desire to get larger during such periods because bigger companies typically outperform smaller peers when times are tough.
8) OPEC and the Petroleum Exporting Countries assumes crude prices will rise to $80 by 2020 as output falls elsewhere. U.S. production could sink by the most in 27 years in 2016 as the price rout extends a slump in drilling. "We have reduced the probability of a return to the $37-$38 area per nearby WTI," said Jim Ritterbusch of oil consultancy Ritterbusch & Associates in North Wabash, Chicago.
9) Banks are working with oil companies. Now OPEC and Russia are all interesting in supporting oil and work together to support prices, according to Reuters . On Monday, Russia's energy minister said the country talks with Saudi Arabia about the oil market in a meeting last week, according to the news service. 10) OIL holding 45 dollars with bad news is considered a turning point by many. When oil goes up on a down oil day you must pay attention. (Friday OCTOBER 2, 2015) 11) Of course news of lower U.S. production and OPEC’s expected production cut spread positive vibes. OPEC has a lot higher target of 70 dollar oil. But what added momentum to crude is the story of short covering. By definition, short covering indicates the purchase of commodities which have already been sold short. This is usually done when prices witness an upward movement.
drillers- challenging environments is when you buy these. ITS clear this is the driller with the biggest POP or return coming when the markets turn. Many say its right now ( YOU must act) ! The markets do also with the oil sector going up on a down day FRIDAY.
The firm also continues to rate Pacific Drilling (aug -2015) at Market Perform, even as the offshore drilling contractor continues to post solid operational performance, with revenue efficiency again coming in near the top of guidance and lower-than-expected operating costs.
But the PACD's outlook remains a concern, the firm says, because of anemic demand and the company’s availability, with up to four rigs with availability to start 2016 and very limited demand on the horizon. Credit Suisse Sept-2015 –Neutra rating on PACD , with a $5 price target, cut from a previous $7, and Pacific Drilling to Neutral from Outperform with a $3 target, down from $4 earlier, while maintaining an( Underperform rating on the overall offshore drilling sector.) Summary---
• (Aug-17, 2015)PacificPacific Drilling reported total contract drilling revenue of $273.9 million. The company reported a second quarter 2015 EBITDA of $149.8 million. This represents an increase over the company's first quarter 2015 EBITDA of $147.3 million. Pacific Drilling reported a net income of $47.1 million in the second quarter 2015. This is a decline from the first quarter 2015's net income of $51.7 million.
• Pacific Drilling's net income works out to $0.22 per diluted share in the quarter.
• The company achieved an impressive revenue efficiency of 95.5% in the second quarter 2015.
Drilling's earnings results compared favorably to the previous quarter, due largely to the company's cost-cutting program that it implemented to allow itself to weather the industry conditions.
The end of the Pacific Mistral's contract reduced revenue, but the company still managed to increase its EBITDA.
Pacific Khamsin comes off contract later this year and that will further reduce cash flow.
Pacific Bora goes off contract in the middle of next year, which will have the same effect.
Pacific Drilling has sufficient liquidity to weather the next two years, even without contracts on these rigs.
On Thursday, August 6, 2015, ultra-deepwater drilling specialist Pacific Drilling (NYSE:PACD) announced its second quarter 2015 results. In some ways, these results were largely as expected, but Pacific Drilling has also implemented some measures during the quarter than allowed it to do an impressive job of maintaining its profitability as it faces a very challenging market.
7/ 7/ 15 - PACD) as this stock is looking especially impressive right now. And while there are numerous reasons why this is the case, we have highlighted three of the most vital reasons for PACD’s status as a solid value stock below: Pacific Drilling beats by $0.03, beats on revs; reaffirms 2015 EBITDA guidance
• Reports Q2 (Jun) earnings of $0.22 per share, $0. 03 CENTS BETTER.. then Capital IQ Consensus Estimate of $0.19; revenues rose 5.0% year/year to $273.9 mln vs the $268.98 mln consensus.
• "During second-quarter 2015, cash flow from operations was $60.6 million. Cash balances totaled $105.3 million as of June 30, 2015, and total outstanding debt was $3.0 billion." They Reaffirmed 2015 EBITDA guidance of $575-615 million, among other metrics. Contract backlog as of July 2015 was approximately $1.9 billion, with 78% utilization in 2015 and 52% in 2016.
EBITDA margin of 54.7%. Our net income was $47.1 million, or $0.22 per diluted share. Our EBITDA margin is an increase over the first quarter and the second highest margin in our Company's history.
Price to Forward Sales for Pacific Drilling
Market Cap (intraday)5: 470.64M
Enterprise Value (Aug 7, 2015)3: 3.38B
Trailing P/E (ttm, intraday): 2.20
Forward P/E (fye Dec 31, 2016)1: N/A
PEG Ratio (5 yr expected)1: 0.10
Price/Sales (ttm): 0.40
Price/Book (mrq): 0.17
Enterprise Value/Revenue (ttm)3: 2.95
Enterprise Value/EBITDA (ttm)6: 5.48
This is a a gift but people believe it may be cheaper tomorrow. Many do not have the discipline to wait for better days as that is what investing is about. It will help if these three things happen. One, the stabilization of the commodity price above $60 for a sustained period of time. Many analyst believe it will happen . Two, a reduction in the global floater fleet, which will require a retirement of a substantial number of units. And three, a return to exploration drilling. With respect to commodity price, unfortunately, we retreated from the gains seen earlier this year and continue to experience an oversupply of oil. It will take time and it is very hard to predict. 2016, 2017: The firm also continues to rate Pacific Drilling (PACD +9.1%) at Market Perform, even as the offshore drilling contractor continues to post solid operational performance, with revenue efficiency again coming in near the top of guidance and lower-than-expected operating costs.
But the PACD's outlook remains a concern, the firm says, because of anemic demand and the company’s availability, with up to four rigs with availability to start 2016 and very limited demand on the horizon.
They think this is like all the other OIL STOCK . This is not losing money . They cant read a balance sheet or understand the KEY statistics that show the company makes money. Take a look and make sure you have enough shares here.
to bad for them. This stock is one I figured would pop the highest return. The financials look better here then my highest runners. I think this will catch fire with attention sooner or later. The industry is starting to call bottom. "I see the first mixed signs for recovery of oil prices," Ben van Beurden told an oil industry conference in London, CEO RDS.
its been a bad week for them as gas at the pumps is going up. UP 9 cents here. The CEOs are seeing light now. The worst seems to be over and the survivors will reap the benefits. The PPS turn offers huge gains, "I see the first mixed signs for recovery of oil prices .; (CEO- RDS) Ben van Beurden told an oil industry conference in London.
The RDS CEO had some light at the end of the tunnel. These are down so far , just the short covering and Market Makers refilling will take us a lot higher. "I see the first mixed signs for recovery of oil prices," Ben van Beurden told an oil industry conference in London.
Industry giants are recognizing the turn around. This is great for the ones in early as the gains are biggest then. This has a lot of room to run. The CEO ROYAL DUTCH SHELL "I see the first mixed signs for recovery of oil prices," Ben van Beurden told an oil industry conference in London.
The turn is starting to be confirmed by the industry. The big money is made in the first of the uptick just starting now. RDS exec- "I see the first mixed signs for recovery of oil prices," Ben van Beurden told an oil industry conference in London.
This is hurting the shorts as it has not given them a pull back. Hedge funds, market makers along with shorts are all having to buy back. Many will try to hold through this uptick. They will begin to realize , THIS IS REAL!. HOLDS TIGHT and make them chase and pay up.
I had WLL for a while and replaced it with OAS and BBG. "I see the first mixed signs for recovery of oil prices," Ben van Beurden told an oil industry conference in London.
Enough good things cant be said for the perfect storm of technology, timing , market lows and new partnerships. - The industry has had 4 down turns in the last 20 years. cheaper oil is good 60 and 70 dollar oil the new 100 dollar oil. Companies are bringing up oil much cheaper.. In the future we could see new legislation towards making oil cheaper. Shale oil and tar sand oil can make companies margins go up. New technologies and techniques are changing oil companies for the better. Companies break evens and coming down. 1) High grade shale assets 2) Shale industry analytics 3) Embracing digital information, data and monitoring 4) Decisions made by sensors and informed leadership 5) Removing crippling laws 6) friendlier international and US laws. 7) Avoid legislative hurdles. 8) Accelerate exploration on federal lands 9) Walking rigs, education, new multiple holes, 10) Better pressure pumps and optimization in timing pressure 11) ON/OFF controls on equipment 12) PADS that make drilling easier , effective ,efficient , faster 13) Optimizing fields and spacing of wells for Horizontal drills and use of pressure pumps and sand, chemicals. 14) Moving water and materials easier to maximize oil in fracking 15) adapting new technologies and industry norms changing 16) Faster drilling and the learning curve developing much faster with data based information studied 17) Sesors , automations, computers, Robotics, seismic software, drones, logistics, mapping, all are being deployed and studied. 18) New water and waist controls and methods for removal with pipelines 19) partnering for pipelines and reducing cost up to 50% Delivering oil with pipe can lower Dakota oil 15% over rail. Exploration and delivery have greatly changed.
The Company has hedges in place for more than 80% of its forecast 2015 production. Generally, it is the Company's strategy to hedge 50%-70% of production on a forward 12-month basis in order to reduce the risks associated with unpredictable future commodity prices and to provide certainty for a portion of its cash flow to support its capital expenditure program. Bill Barrett Corporation explores for and develops oil and natural gas in the Rocky Mountain region of the United States. The Company holds acreage in a number of basins with plans for drilling activity in the Powder River, Southern Alberta, Paradox and San Juan Basins. Among its four key development programs, three of the programs target oil and high British Thermal Unit (BTU) content natural gas that can be processed into natural gas liquids (NGLs), while its exploration program is exclusively focused on oil and high BTU content natural gas ******************************************************************** Bill Barrett, it has completed a multiyear transition to a liquids-weighted portfolio, with oil now representing about 70% of reserves and production. Its focus is on the top tier of the Northeast Wattenberg Field in Colorado, where the company is gaining operational momentum as results from its extended-reach lateral (XRL) program keep getting better.
The analysts detailed in the report:
Due to improved drilling efficiencies, Bill Barrett will accomplish its planned activities in the Northeast Wattenberg area for the remainder of the year with a one-rig drilling program, reducing its operated rig count from two rigs to one after completing current drilling operations on a multi-well XRL pad. It is now anticipated that 2015 capex will be ~$315-325 million vs. $320-350 million previously. This is primarily a result of drilling times for XRL wells being reduced from an average of 17 days to ~10 days (one recently drilled in 7.5 days), associated cost reductions that have lowered XRL well costs to ~$5.6 million from $8.25 million in 2014 and $6.25 million in the first half of 2015, and the timing of certain well completions.
Canaccord Genuity has a Buy rating for Bill Barrett and a $9.50 price target, implying upside of over 200% from current prices.
my guess is by Friday the way the sector has taken off right now. The industry has been coiled for some time now. A double is in order for the next two weeks. MOMENTUM, money makers scrambling for shares, hedging , covering , bottom fishers, speculators and investors all are buying with funds. This is the perfect storm. HOLD for higher ground and no mercy for shorts.