For Immediate Release
Chicago, IL – November 29, 2012 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Baker Hughes Inc. (BHI), Diamond Offshore (DO), Noble Corp. (NE), Patterson-UTI Energy (PTEN) and Helmerich & Payne (HP).
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513
Here are highlights from Wednesday’s Analyst Blog:
U.S. Rig Count Rises by 8
In its weekly release, Houston-based oilfield services company Baker Hughes Inc. (BHI) reported a rise in the U.S. rig count (number of rigs searching for oil and gas in the country). This upside can be attributed to an increase in the tally of gas-directed rigs, partially offset by decrease in oil and miscellaneous rig counts.
The Baker Hughes rig count, issued since 1944, acts as an important yardstick for drilling contractors such as Diamond Offshore (DO), Noble Corp. (NE), Patterson-UTI Energy (PTEN), Helmerich & Payne (HP), etc. in gauging the overall business environment of the oil and gas industry.
Analysis of the Data
Weekly Summary: Rigs engaged in exploration and production in the U.S. totaled 1,817 for the week ended November 21, 2012. This was up by 8 from the previous week’s rig count and indicates the third increase in as many weeks.
The current nationwide rig count is more than double than that of the 6-year low of 876 (in the week ended June 12, 2009) though it is way below the prior-year level of 2,000. It rose to a 22-year high in 2008, peaking at 2,031 in the weeks ending August 29 and September 12.
Rigs engaged in land operations climbed by 5 to 1,745, offshore drilling was up by 3 to 53 rigs, while inland waters activity remained steady at 19 units.
Natural Gas Rig Count: The natural gas rig count – which slumped to a 13-year low in early November – increased for the second successive week to 428 (a gain of 11 rigs from the previous week). Despite the weekly improvement, the number of gas-directed rigs is down 54% from its 2011 peak of 936, reached during mid-October.
In fact, the current natural gas rig count remains 73% below its all-time high of 1,606 reached in late summer 2008. In the year-ago period, there were 865 active natural gas rigs.
Oil Rig Count: The oil rig count – which was at a 25-year high of 1,432 in August – inched down by 2 to 1,388. Nevertheless, the current tally is way above the previous year’s rig count of 1,130. It has recovered strongly from a low of 179 in June 2009, rising almost 8 times.
Miscellaneous Rig Count: The miscellaneous rig count (primarily drilling for geothermal energy) at 1 was down by 1 from the previous week.
Rig Count by Type: The number of vertical drilling rigs fell by 1 to 509, while the horizontal/directional rig count (encompassing new drilling technology that has the ability to drill and extract gas from dense rock formations, also known as shale formations) was up by 9 to 1,308. In particular, horizontal rig units – that reached an all-time high of 1,193 in May this year – increased by 9 from the last week’s level to 1,114.
Zacks Rank: Among the companies mentioned above, Diamond Offshore, Noble, Patterson-UTI Energy and Helmerich & Payne are all Zacks #3 Rank (Hold) stocks, implying that these are expected to perform in line with the broader U.S. equity market over the next one to three months.
However, Baker Hughes retains a Zacks #4 Rank, which translates into a short-term Sell rating, while Transocean’s Zacks #2 Rank means that the offshore drilling contractor is likely to outperform the broader U.S. equity market over the next one to three months.
Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leon Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
Zacks Investment Research
800-767-3771 ext. 9339
More From Zacks.com