Looking around at the headlines this morning, everyone’s talking about oil prices “plunging” or “slumping” below $50 (example). Whether oil is $49 or $51 doesn’t make that much of a difference for industry participants themselves – be they oil service firms or E&Ps they serve. To be sure, there may be …
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Weatherford Swipes Halliburton CFO, Strengthening Its Turnaround Story And Catching Everyone By Surprise
In an unexpected announcement Monday evening, Weatherford welcomed of Mark McCollum, Halliburton’s CFO, as its new permanent CEO and director. For Weatherford, choosing between interim CEO Krishna Shivram and McCollum was a win/win. Shivram impressed everyone during his stint at the helm, but McCollum is the stronger candidate. So when the board realized …
Read More »Can Weatherford & Nabors Steal Schlumberger’s Thunder?
On Wednesday afternoon, Weatherford announced that a new alliance has been formed with Nabors Industries to integrate drilling rigs and services in the US land market. This new service model is something Schlumberger has been talking about and working on for several years now. In this update, we offer our take …
Read More »The Great Permian Migration Continues With SM Energy Deal
The shale industry kicked off the new year with a continuation of the great migration to the Permian Basin. This morning SM Energy announced the sale of its third party operated assets in the Eagle Ford, including its ownership interest in related midstream assets, for $800 million. In this update we …
Read More »A Deal Before Year-End: Patterson-UTI Pays Top Dollar For Seventy Seven Energy
Land drilling / pressure pumping hybrids Patterson-UTI and Seventy Seven Energy have agreed to join forces as 2016 draws to a close. Patterson-UTI will purchase Seventy Seven Energy for $1.76bn in an all-stock deal that includes the assumption and repayment of $336mm of net debt. This deal isn’t a bargain, as …
Read More »BJ’s Back As Goldman Sachs Buys Frac For Pennies On The Dollar
BJ Services returned to the scene as a standalone company late Tuesday as Baker Hughes announced the pressure pumping divestiture they talked about before the GE deal and confirmed during the GE announcement. We break down the deal including observations about value, Goldman Sach’s interesting history with BJ Services, and some …
Read More »Weatherford Captures The “Bernard” Effect By Raising A Billion Bucks In 24 Hours
On Wednesday morning (11/16), Weatherford sold 84.5mm shares at $5.40/share in a registered direct equity offering for $456mm. Last week, Infill Thinking predicted that Weatherford would raise equity capital following the stock’s 33%+ gain on CEO Bernard Duroc-Danner’s departure. The market reacted positively to today’s equity raise, Weatherford’s stock rising another 3% …
Read More »Weatherford CEO Walks Away. Here’s What We Know (And What We Think We Know)
Developing November 9, 2016 4pm central. What Happened: On Wednesday afternoon, Weatherford announced the departure of Chairman and CEO Bernard Duroc-Danner, 63, effective immediately. We explore why and what’s next. There’s a lot more to this story… Login to see the full update… To read this update and receive our research newsletters, you must …
Read More »GE & Baker Hughes – Initial Reaction To The Deal
After four days of speculation and head scratching over what kind of deal GE and Baker Hughes might be concocting, the companies announced an extensive partnership Monday morning, essentially a merger of GE O&G with Baker Hughes. The deal is more extensive than we (and many others) originally expected late last week. …
Read More »GE Looks At Partnering With Baker On Frac? Makes Sense To Us…
We discuss the breaking news that GE has come forward as a potential partner for Baker Hughes and evaluate the merits and fit of such a partnership. There’s a lot more to this story… Login to see the full update… To read this update and receive our research newsletters, you must …
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