Service Bundles Drive Profits for Selected Stocks in 2014: A Wall Street Transcript Interview with Edward C. Muztafago, a Vice President of Investment Research in the Oilfield Services and Equipment Sector at Societe Generale
67 WALL STREET, New York - January 7, 2014 - The Wall Street Transcript has just published its Oil & Gas: Drilling Equipment and Services Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: Oil Price Expectations - Shale, Offshore and Deepwater Drilling - Unconventional Resources - Bundled Oil and Gas Services - Oil and Gas Transportation Services - Dividend Yields for Energy Investors - Domestic Crude Prices - International Energy Opportunities
Companies include: Halliburton Company (HAL), Schlumberger Limited (SLB), Weatherford International Ltd. (WFT), FMC Technologies, Inc. (FTI), Cameron International Corporat (CAM), National Oilwell Varco, Incorp (NOV), Oceaneering International, Inc (OII), Ensco International Inc. (ESV), Noble Energy, Inc. (NBL), Rowan Companies Inc. (RDC)
In the following excerpt from the Oil & Gas: Drilling Equipment and Services Report, an expert analyst discusses the outlook for the sector for investors:
TWST: You cover a few different segments within oil and gas. Which part of the sector are you most bullish about right now and why?
Mr. Muztafago: We currently cover what I would classify as three main subsectors, which is the multiservice companies, Halliburton (HAL), Schlumberger (SLB), Baker Hughes (BHI), Weatherford (WFT); and the what I would coin as equipment/subsea providers, so that's FMC Technologies (FTI), Cameron International (CAM), National Oilwell Varco (NOV) and Oceaneering (OII); and then a small group of the offshore drilling companies, which would be Ensco (ESV), Noble (NE) and Rowan Corp (RDC).
And I would certainly say that when I look at those three subsectors of the market, we are by far the most bullish on the multiservice companies. I think from a valuation, risk/reward profile, we see the most upside in those companies from here. The environment is certainly decent, although not robust, and I think there's a lot of upside potential in those companies yet when the environment starts to tighten up a little bit as we get particularly toward the back half of 2014.
TWST: In your last interview with us, you talked about the market shifting more toward integrated or packaged servicing. Can you discuss that trend a bit more? Which companies are poised to benefit as it plays out?
Mr. Muztafago: Certainly that does favor the three larger multiservice companies, again Halliburton, Schlumberger and Baker. That trend has clearly continued to gain momentum. In fact, I think Halliburton in a recent event mentioned that somewhere around 80% of their revenue in North America is now driven by bundled services, so three product lines or more...
For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
