Outlook for Oil Field Services Decidedly Mixed

Energy

Published: January 8, 2013 11:18 am

Last Updated: April 28, 2020 3:19 am

Investment firm Sterne Agee this morning published its outlook for the oil field services sector, calling for limited upside in North American activity, improvement in international drilling, and a trend toward growth in deepwater activity.

The firm also made some changes to its ratings on services companies. Baker Hughes Inc. (NYSE: BHI) and Superior Energy Services Inc. (NYSE: SPN) were both downgraded from ‘buy’ to ‘neutral’ and FMC Technologies Inc. (NYSE: FTI) was upgraded from ‘neutral’ to ‘buy’. The price target for Baker Hughes remained at $46 a share, and the price target on shares of Superior remained at $24. EPS estimates for the years 2012 through 2014 were lowered for both firms. FMC’s price target was raised to $56.

Sterne Agee’s favorite names in the sector are FMC, Halliburton Co. (NYSE: HAL), and Schlumberger Ltd. (NYSE: SLB). Although the firm doesn’t offer any comments on either Halliburton or Schlumberger, these two companies share FMC’s international exposure and deepwater experience.

The more exposed a services company is to U.S. and Canadian drilling, the greater the potential drag on performance. Drilling for natural gas has been sharply curtailed in the U.S., while lower crude and liquids prices have slowed the growth in drilling for liquids. As things stand today, rising prices for crude, liquids, and natural gas are not in the near-term picture and appear only fuzzily in the longer term outlooks.

Travel Cards Are Getting Too Good To Ignore (sponsored)

Credit card companies are pulling out all the stops, with the issuers are offering insane travel rewards and perks.

We’re talking huge sign-up bonuses, points on every purchase, and benefits like lounge access, travel credits, and free hotel nights. For travelers, these rewards can add up to thousands of dollars in flights, upgrades, and luxury experiences every year.

It’s like getting paid to travel — and it’s available to qualified borrowers who know where to look.

We’ve rounded up some of the best travel credit cards on the market. Click here to see the list. Don’t miss these offers — they won’t be this good forever.