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The Zacks Analyst Blog Highlights: Halliburton, Schlumberger, Diamond, Transocean and Pioneer Natural

Zacks Equity Research
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For Immediate Release

Chicago, IL –January 14, 2019 – 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: Halliburton Company HAL, Schlumberger Limited SLB, Diamond Offshore Drilling, Inc. DO, Transocean Ltd. RIG and Pioneer Natural Resources Company PXD.

Here are highlights from Friday’s Analyst Blog:

U.S. Rig Count Increases for the 4th Consecutive Month

Baker Hughes recently declared the rig count for December 2018. In the United States, the total number of rigs increased from the previous month, owing to a higher number of offshore rigs. This is the fourth consecutive increase in the U.S. monthly rig count.

More on the Rig Count

Baker Hughes’ data, issued at the end of every week since 1944, facilitates energy service providers gauge the overall business environment of the oil and gas industry.

A change in the Houston-based oilfield services players’ rotary rig count affects demand for energy services like drilling, completion and production provided by companies like Halliburton Company, Schlumberger Limited, Diamond Offshore Drilling, Inc. and Transocean Ltd.

Analysis of the Data

North America Rig Count

Total rig count in North America (the United States and Canada) for December 2018 was 1,219. The reported figure was lower than the November 2018 count of 1,275, but, higher than the year-ago level of 1,135.

U.S. rig:Total number of rigs in the United States was 1,078. This was higher than 1,077 rigs in November and 930 in the year-ago period.

Of the total U.S. rigs, land rigs were 1,054. This is lower than 1,055 rigs in the prior month, but, higher than 911 rigs in December 2017.

The number of U.S. offshore rigs in December 2018 was 24. This was higher than 22 rigs in November 2018 as well as 19 rigs in December 2017.

Canada rig: In Canada, the total rig count of 141 was lower than 198 in November 2018 and 205 in December 2017.

International Rig Count

Total international rig count (offshore and land) for the month of December came in at 1,025. The count was up by 34 in November. It is also higher than the tally of 954 recorded in December 2017.

Offshore rig: The offshore rig count for December 2018 was 234, higher than 206 in November and 191 in the prior-year comparable month.

Land Rig: The land rig count was 791 compared with 785 in November 2018 and 763 in December 2017.

Conclusion

After plummeting below $45-a-barrel, the price of West Texas Intermediate (WTI) crude is approaching $55, hoping the ongoing Trade war between China and the United States will settle down and will in turn strengthen global commodity demand.

Notably, the weak crude pricing scenario has not made any significant impact on the U.S. shale drillers as with the advancement of technologies, well costs have declined drastically. Since, breakeven oil price in the Permian play is lower than $30 a barrel — per Pioneer Natural Resources Company — it will be a wise decision to keep a track on drillers operating in the prolific resource.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.  

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.


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