Energy Prospectus

Analyst Actions: Patterson-UTI Energy Downgraded to Hold from Buy at Jefferies 11/29 06:10 AM

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07:10 AM EST, 11/29/2011 (MidnightTrader) -- Patterson-UTI Energy (PTEN:$19.77,00$0.66,003.45%) has been downgraded to Hold from Buy at Jefferies.

The firm has lowered price target to $22 from $25.

Price: 19.77, Change: 0, Percent Change: 0

GO FIGURE!

Analyst Actions: Schlumberger Initiated with a Buy at Jefferies; Shares Up in Pre-Market 11/29 07:15 AM

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08:15 AM EST, 11/29/2011 (MidnightTrader) -- Schlumberger (SLB) has been initiated with a Buy at Jefferies.

Price target is $90.

Shares are up 0.27% to $69.41 in pre-market trading.

Price: 69.41, Change: +0.19, Percent Change: +0.27

http://www.midnighttrader.com

I guess pten forgot to shower??

I spent several hours working on HP yesterday and looking at all the onshore drillers. IMO they are all great buys at today's share prices. Assuming oil prices stay high, the demand for high quality rigs is getting stronger each day.

Read my profile on HP, which should be sent to all EPG members tomorrow. It would have gone out today but we've had several "issues" to deal with around here.

Patterson-UTI Energy Inc. (PTEN)

Like most energy companies the Great Recession really hurt earnings for land drilling services provider, Patterson-UTI Energy. Since having negative earnings in 2009, the company’s earnings are starting to get back on track. Now trading for 9.9 times forward earnings, this company is starting to look attractive again. This multiple is significantly lower than competitors Baker Hughes Incorporated (BHI) and Helmerich & Payne Inc. (HP) at 12.4 and 12.1 times forward earnings, respectively. Like Nabors, Patterson-UTI has shelled out a lot of cash over the last quarter. Instead of paying back debt like Nabors did, Patterson-UTI’s cash mainly went to capital expenditures. The trouble is these expenditures brought cash levels extremely low. This could be a sign of too much risk-taking or that management believes the future outlook is bright and this is the time to invest heavily in capital. Only time will tell, but the outlook for the industry and company look good. This is another company worth looking at.

from ---

http://seekingalpha.com/article/312325- ... urce=yahoo

PTEN and HP are spending capital on new rigs. Large E&P companies are waiting in line for these rigs that go out on long-term contracts as soon as they are tested and ready to go to work.

Read our new profile on HP.

I also like UNT and UDRL (higher risk / reward on this small-cap).

Analyst Actions: Patterson-UTI Energy Upgraded to Overweight from Equalweight at Barclays; Shares Up 1% in Pre-Market 12/19 07:29 AM

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08:29 AM EST, 12/19/2011 (MidnightTrader) -- Patterson-UTI Energy (PTEN:$18.89,00$0.66,003.62%) has been upgraded to Overweight from Equalweight at Barclays.

Price target is $35.

Shares are up 1.80% to $19.23 in the pre-market session.

Price: 19.23, Change: +0.34, Percent Change: +1.80

http://www.midnighttrader.com

THP comments on PTEN (Keep in mind that pressure pumping generates about a third of PTEN's revenues):

PTEN Q4 update ($18.89 – B) – Like the land rig exposure and not paying anything for pressure pumping right now. Raising 2012 eps 16c (becomes $2.28) on lower opex as Q3 issues subside. Stock at 3x our $1.08B 2012 EBITDA; remains cheap and $3.3B in investments over past 5 years have renewed PTEN's rig base. Like lower risk profile cycle to cycle with greater contract coverage. Rig utilization continues to improve. Pressure pumping still strong but Northeast more balanced than Southwest and remaining capacity additions (~140k hp) tilted towards Texas.

Patterson-UTI Q4 follow up (PTEN – $18.89 – B) Joe Hill jhill@tudorpickering.com<https://webmail.smu.edu/owa/UrlBlockedError.aspx>, John Lawrence jlawrence@tudorpickering.com<https://webmail.smu.edu/owa/UrlBlockedError.aspx>

· Stock thoughts – Stock has lagged dramatically the last three months (-16%, vs. -8% for NBR and +4% for HP) as investors flee/pair up PTEN’s pressure pumping exposure. What was an asset last year has turned into a millstone as the market waits for the inevitable overcapacity driven downturn. The land rig business looks much better, with only 167 rigs in the public company newbuild pipeline, or 7% of working capacity. Valuing just land rigs/E&P, investors are paying 4.5x 2012 EBITDA for the biz, which we think is reasonable in and of itself (and it could be potentially cheaper than this, if the forecast rig count reduction we have modeled does not come to pass), but are getting pressure pumping for FREE. When taken in the context of a 14% net debt/capitalization ratio, and contract coverage of 94 rigs average for 2012 (41% of our active rig forecast for the company), we think the market is overly bearish on PTEN’s prospects.