|Bid||0.00 x 1000|
|Ask||0.00 x 4000|
|Day's Range||38.94 - 39.42|
|52 Week Range||35.75 - 57.86|
|PE Ratio (TTM)||359.27|
|Earnings Date||Oct 22, 2018|
|Forward Dividend & Yield||0.72 (1.86%)|
|1y Target Est||52.13|
Live from the floor of the New York Stock Exchange, Keith Bliss of DriveWealth joins Yahoo Finance's Seana Smith and Dion Rabouin to discuss the latest moves.
In 2014, WTI crude oil prices were north of $100 per barrel. Not surprisingly, energy stocks, and in particular oil stocks, were doing pretty well back then. The oil market was left with this massive oversupply glut, and that sent oil prices tumbling.
In the week that ended on September 14, the oil rig count rose by seven to 867, just two fewer than its three-and-a-half-year high.
Halliburton (HAL) is trading at a forward EV-to-EBITDA multiple of ~8.6x—lower than Schlumberger (SLB) and Baker Hughes’s (BHGE) forward EV-to-EBITDA multiples. Schlumberger and Baker Hughes are trading at multiples of ~12.1x and 10.6x, respectively.
So far in 2018, oilfield services stocks have fallen broadly. The VanEck Vectors Oil Services ETF (OIH) has fallen ~9% YTD (year-to-date). Schlumberger (SLB), Halliburton (HLB), and TechnipFMC (FTI) have fallen 13%, 23%, and 6%, respectively, in 2018. Baker Hughes (BHGE) has risen ~1%. Together, the four companies form ~43% of OIH.
The number of Halliburton (HAL) shares shorted fell from ~16.7 million on August 15 to ~14.4 million on August 31—a fall of ~13.4%. According to data released on September 12, the short interest in Halliburton as a percentage of its float is currently ~1.6%. Halliburton’s short interest ratio is 2x, which shows that it will take about two days to cover all of the open short positions in Halliburton.
Curently, Halliburton’s (HAL) DE (debt-to-equity) ratio is 1.2x—the highest among the four companies that we’re comparing—Halliburton, Baker Hughes (BHGE), Schlumberger (SLB), and TechnipFMC (FTI). Baker Hughes, Schlumberger, and TechnipFMC have DE ratios of 0.2x, 0.5x, and 0.3x, respectively.
Halliburton’s (HAL) expected capital expenditure for 2018 is $2.0 billion, which is ~50% higher than its capital expenditure in 2017. In the first half of 2018, the company spent $1.1 billion on growth projects. To learn more, read Understanding Halliburton’s Capital Expenditure Focus.
In the first half of 2018, Halliburton’s (HAL) revenues grew 29% YoY (year-over-year)—compared to Schlumberger’s (SLB) 12% revenue growth during the same period. In comparison, TechnipFMC’s (FTI) revenues fell 16% YoY in the first half of 2018. Baker Hughes’ (BHGE) revenues increased 79% YoY due to the merger of General Electric’s (GE) oil and gas business and Baker Hughes—completed in July 2017. In the first half of 2018, Baker Hughes’ revenues grew 2% YoY on a combined business basis.
The global E&P (exploration and production) spend fell significantly in 2015 and 2016. The investments in E&P need to grow to meet the global demand for oil and gas. Increased E&P spend should bode well for oilfield services companies serving the sector. Between 2019 and 2021, the global E&P spend, including capital and operating expenditures, might grow at a compound annual growth rate of 9%.
Schlumberger (SLB) provides a range of products and services for hydrocarbon recovery that optimizes reservoir performance. The company operates through four segments—Reservoir Characterization, Drilling, Production, and Cameron. The Reservoir Characterization segment provides technologies involved in finding and defining hydrocarbon resources.
J.P. Morgan derivatives strategists recommend short-term option bets on Masco, Carmax, C.H. Robinson and Halliburton, based on their historic outperformance during post-hurricane rebuilding.