67 WALL STREET, New York - February 26, 2013 - 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 and Equity Analysts. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: Capital Expenditures and Consolidation Activity - Frontier Exploration and Development - Shale Drilling Capital Expenditures - Oil Price Expectations - Shale Drilling Dynamics - Shale, Offshore and Deepwater Drilling - Oil and Gas Price Divergence - Offshore Deepwater Oil Discoveries
Companies include: Gulfmark Offshore Inc. (GLF), Hornbeck Offshore Services, In (HOS), Tidewater Inc. (TDW), Cal Dive International Inc (DVR), Helix Energy Solutions Group, (HLX), Oceaneering International, Inc (OII), National Oilwell Varco, Incorp (NOV), Cameron International Corporat (CAM), FMC Technologies, Inc. (FTI), Weatherford International Ltd. (WFT), Petroleo Brasileiro (PBR), Key Energy Services Inc. (KEG), Diamond Offshore Drilling Inc. (DO), Transocean Ltd. (RIG), Noble Corp. (NE), Ensco International Inc. (ESV), Rowan Companies Inc. (RDC) and many more.
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: What's been your broad-brush take on earnings so far?
Mr. Stolz: It's tough to paint all of oilfield services so far this quarter with a broad brush because of the very, very different dynamics going on. But North American land, like I mentioned - there is still cautious outlook. There are some seeds of hope that are worth a good look. But in general, the market underperformed expectations in the second half 2012.
Utilization on oil services seems to be up in the first quarter, for the pressure pumpers and well-service activities. Fluid services remains oversupplied and under pressure. Then, there are individual company stories: Key Energy Services (KEG) noted recently that one of their large customers looks to be doing a lot less well service work in the first quarter. So our outlook on North American land is still cautious, although we believe over 2013, activity will ramp up, particularly this spring.
Looking offshore, while it's very favorable on the demand side, the big thing we are looking at over 2013 is opex maintenance and how the deepwater drillers manage their expenses. Certain companies are doing a very good job of that, including Diamond Offshore (DO). Others are struggling with that in the post-Macondo world.
Looking at boats, a lot of operators are going to new build phases right now, and as they bring in new builds over the course of 2013, that will have a big impact in earnings. We're keeping an eye on overall supply and individual markets and how that affects utilization rates, and we're overall pretty bullish on the boat sector over the course of 2013, particularly Hornbeck and GulfMark.
The sector we like the most for the next several years is...
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.
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