Analyst Actions: Helmerich & Payne Upgraded to Buy Rating at Jefferies
MIDNIGHT TRADER 12:24 PM ET 10/9/2014
Helmerich & Payne(HP) was upgraded to a buy rating from a hold at Jefferies on Thursday.
The firm maintained its $15 price target on Helmerich & Payne(HP).
Shares fell 4.5% to $85.36 in New York. The stock has traded in a range from $70.59 to $118.95 a share in the past 52 weeks.
Price: 86.18, Change: -3.23, Percent Change: -3.61
HP upgrade
Re: HP upgrade
I think the price target is $115 for HP.
Onshore drillers continue to look good to me. Demand for high end rigs remains high.
Onshore contract driller, Patterson-UTI Energy Inc. (PTEN) declared that its Sep 2014 drill rig count has increased by 3 from Aug 2014 to reach an average of 221. The company operated 211 rigs in the U.S. and 10 in Canada last month.
Patterson-UTI revealed that for the three months ending Sep 30, its rig count averaged 209 in the U.S. and 10 in Canada.
Patterson-UTI is a major onshore contract driller in the U.S. with over 275 land-based rigs that operate primarily in the oil and natural gas producing regions of North America. The company’s increasing premium land rig fleet and the expected rise in demand for such services should lead to further growth in the near term.
Moreover, owing to the emergence of major shale plays that are yielding impressive results over the last few years, there has been an overwhelming requirement of increasingly complex drilling. With its technologically advanced ‘Apex’ rigs – that command higher dayrates and utilization – constituting around 65% of its total fleet, Patterson-UTI is well poised to expand further in the shale-drilling market.
Additionally, onshore drillers like Patterson-UTI are set to benefit from growth in oil-focused horizontal drilling. The technique, which considerably improves well productivity, requires new and complex technology that enables drillers to charge higher rates. As land drilling activity continues to thrive, the booming rig demand will improve pricing across the fleet.
Patterson-UTI looks good on the earnings front as well. The company has delivered positive earnings surprises in three of the four trailing quarters with an average surprise of 25.86%. Moreover, upward revisions indicate the company’s bright prospects.
Onshore drillers continue to look good to me. Demand for high end rigs remains high.
Onshore contract driller, Patterson-UTI Energy Inc. (PTEN) declared that its Sep 2014 drill rig count has increased by 3 from Aug 2014 to reach an average of 221. The company operated 211 rigs in the U.S. and 10 in Canada last month.
Patterson-UTI revealed that for the three months ending Sep 30, its rig count averaged 209 in the U.S. and 10 in Canada.
Patterson-UTI is a major onshore contract driller in the U.S. with over 275 land-based rigs that operate primarily in the oil and natural gas producing regions of North America. The company’s increasing premium land rig fleet and the expected rise in demand for such services should lead to further growth in the near term.
Moreover, owing to the emergence of major shale plays that are yielding impressive results over the last few years, there has been an overwhelming requirement of increasingly complex drilling. With its technologically advanced ‘Apex’ rigs – that command higher dayrates and utilization – constituting around 65% of its total fleet, Patterson-UTI is well poised to expand further in the shale-drilling market.
Additionally, onshore drillers like Patterson-UTI are set to benefit from growth in oil-focused horizontal drilling. The technique, which considerably improves well productivity, requires new and complex technology that enables drillers to charge higher rates. As land drilling activity continues to thrive, the booming rig demand will improve pricing across the fleet.
Patterson-UTI looks good on the earnings front as well. The company has delivered positive earnings surprises in three of the four trailing quarters with an average surprise of 25.86%. Moreover, upward revisions indicate the company’s bright prospects.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: HP upgrade
Land drillers join offshore brethren with troublesome prospects • 3:43 PM
Carl Surran, SA News Editor
•Offshore drillers have company now that falling oil prices are hitting the shares of land drillers such as Helmerich & Payne (HP -3.7%), Patterson-UTI (PTEN -6.8%), Nabors Industries (NBR -4.7%) and Seventy Seven Energy (SSE -5%) - with good reason, Susquehanna analysts say.
•The firm views land drillers at considerable risk to estimate revisions, given high current dayrates and significant newbuild construction activity, which could be problematic if lower crude prices persist or a weaker outlook on U.S. E&P spending comes out of earnings season.
•Nevertheless, the firm finds valuations much better in land drilling for now, and it prefers PTEN and NBR at a respective 3.7x and 4.5x 2015 EBITDA.
Carl Surran, SA News Editor
•Offshore drillers have company now that falling oil prices are hitting the shares of land drillers such as Helmerich & Payne (HP -3.7%), Patterson-UTI (PTEN -6.8%), Nabors Industries (NBR -4.7%) and Seventy Seven Energy (SSE -5%) - with good reason, Susquehanna analysts say.
•The firm views land drillers at considerable risk to estimate revisions, given high current dayrates and significant newbuild construction activity, which could be problematic if lower crude prices persist or a weaker outlook on U.S. E&P spending comes out of earnings season.
•Nevertheless, the firm finds valuations much better in land drilling for now, and it prefers PTEN and NBR at a respective 3.7x and 4.5x 2015 EBITDA.