Oilfield Services- Oct 10
Posted: Thu Oct 10, 2019 10:38 am
Oilfield Services & Equipment - Stiff Headwinds Persist in U.S. Land Market; Cutting Estimates and Target Prices for Oil Service Names
- Stephen Gengaro at Stifel
Headwinds persist for oil service companies, particularly in the U.S. land market as E&Ps strive to spend within cash flow. As a result of recent data points that indicate a sharp reduction in completion activity and pricing for several key oil service product lines, we are reducing our 2019-20 estimates for most names in our coverage universe and cutting target prices. Our favorite names are SLB and BHGE, our preferred small- to mid-caps are BOOM and FRAC, and our favorite value idea is SLCA.
- Stephen Gengaro at Stifel
Headwinds persist for oil service companies, particularly in the U.S. land market as E&Ps strive to spend within cash flow. As a result of recent data points that indicate a sharp reduction in completion activity and pricing for several key oil service product lines, we are reducing our 2019-20 estimates for most names in our coverage universe and cutting target prices. Our favorite names are SLB and BHGE, our preferred small- to mid-caps are BOOM and FRAC, and our favorite value idea is SLCA.