Standard & Poor's Equity Research has maintained a Hold recommendation shares of Nabors Industries Ltd., Hamilton, Bermuda (NYSE: NBR).
S&P analyst Michael Kay says first quarter earnings per share, before special items, of $0.65 versus $0.81 beats S&P’s estimate by $0.09 on cost controls and higher results in U.S. offshore and Alaska. Nabors averaged 193 U.S. land drilling rigs in the first quarter and now has 137 rigs employed, a 40% utilization rate.
On lower utilization, weak fundamentals in Canada, and a lower well-servicing outlook, S&P cut its 2009 earnings-per-share estimate by $0.18 to $1.54, and reduced 2010’s by $0.55 to $1.45 on the firm’s expectation of an extended downturn in drilling. On multiple expansion and its view that Nabors is better positioned than peers, S&P lifted its target price by $5 to $16.
The Nabors companies operate a fleet of approximately 525 land drilling and approximately 700 land workover and well-servicing rigs in North America.
Recommended Reading
US Shale Basins Boast $54/bbl Average Breakeven Price
2023-03-24 - The average full-cycle breakeven for U.S. shale basins is approximately $54/bbl, while the average for public E&Ps and private operators is $53/bbl and $58/bbl, respectively, Wells Fargo said, citing Rystad Energy data.
Dawson Geophysical Purchases Seismic Firm Breckenridge Geophysical
2023-03-24 - Wilks Brothers-controlled Dawson will purchase Breckenridge Geophysical — owned by Wilks Brothers — in an all-stock deal worth more than $10 million.
Oil is Sticking Around, Rystad and WoodMac Say
2023-03-24 - Rystad Energy and Wood Mackenzie executives said during an AAPG-Energy Opportunities event in Mexico City that oil will still be needed through 2050 and that the energy transition will take time.
Investors Waiting Out AMLO’s Tenure, Eyeing Future Mexican Leader
2023-03-24 - Energy investors in Mexico continue to wait out the tenure of President Andrés Manuel López Obrador, which comes to an end next, with an eye on a new leader and potential policy changes.
Wave of New LNG Export Plants Threatens to Knock Gas Prices
2023-03-14 - "When you hear people say 'there is no way we will overbuild this,' that's when things get over-built," said Alan Armstrong, CEO of U.S. gas pipeline operator Williams Cos., which supplies gas to LNG exporters.