OFS - Patterson-UTI expects rig count to fall by a third in Q2 - April 2020Patterson-UTI expects its average operating drilling rig count to decline by one-third in Q2 and industrywide activity to fall by 60% or more. To maintain liquidity, PattersonUTI intends to spend under $70 million on capex in the last three quarters of the year and cut its quarterly dividend by 50%. It has also stopped stock buybacks. CEO Andy Hendricks said during the Q1 earnings conference call on April 23 that Patterson-UTI expects to exit Q2 with just above 70 rigs operating. For...
Apr 29, 2020
OFS - OFS cuts to the bone on pay, capex, staff, dividends, etc. - April 2020So is there any good news out there? For one, Apergy Corp. and ChampionX is going ahead with their $4.39 billion merger. (PG.1). Ion Geophysical Corp. said its Q1 revenue will be double that of 1Q18 (PG.7). Select Energy Services expects to see positive free cash flow in 2020 (PG.15). Beyond that, it was pretty grim. Anyone in oilfield services sees his or her share of rough times. Dril-Quip CEO Blake DeBerry entered the sector in 1982. “I tell people, ‘My first five years in the...
Apr 09, 2020
OFS - Patterson-UTI cuts pressure pumping spreads but unstacks rigs - February 2020Patterson-UTI stacked three more pressure pumping spreads during 4Q19, bringing its fleet down to 11. Even though the company ended the year with its first monthly rig increase in a year, it exited 2019 with 123 active rigs, down 20 for the quarter. Even the December rig boost came with a downside. Patterson-UTI stacked 23 rigs early in 4Q19 only to reactivate 10 of them later that quarter. This “highly unusual” situation increased costs in the quarter, CEO Andy Hendricks said during...
Feb 25, 2020
OFS - Services tell Fed activity rising, margins shrinking - April 2019A resurgent oilfield services sector
spurred a “modest” revival in energy
activity in Q1, according to a survey by
the Dallas branch of the Federal Reserve.
While services activity rose sharply, prices
and margins declined.
The oilfield services business activity
index jumped from 0.0 in 4Q18 to 16.1
in Q1, and the index for utilization of
equipment gained 15 points sequentially
to 16.4 in Q1. Positive readings in the
survey generally indicate expansion, while
readings below zero...
Apr 03, 2019