Weather, rail delays to weigh on Q1 earnings of oil services firms - MS

Source Energy Services

11/04/2018 12:25

** Morgan Stanley says certain factors affecting oil
services, drilling and equipment companies to weigh on Q1
results but expects performance to improve in Q2; Revises PTs
    ** Pressure pumpers and sand suppliers feeling the effects
of freezing weather, rail delays, and delays in ramping up new
sand mines - MS
    ** Halliburton  HAL.N  said in Feb its Q1 earnings will be
reduced by 10 cents/share due to delays in deliveries of sand
used in fracking  urn:newsml:reuters.com:*:nL4N1Q542X
    ** MS says ~25 pct more wells have been drilled than
completed in the Permian over last 12 months which suggests a
drilling slowdown or increasing completions by year-end
    ** Number of drilled but uncompleted wells (DUCs) in the
Permian is expected to rise to 2,937 in April from 2,815 in
March - U.S. Energy Information Administration (https://bit.ly/2jn96X0)
    ** Land drillers, like Helmerich & Payne  HP.N  and Nabors
Industries  NBR.N , to not face effects of bottlenecks directly
    ** Wells Fargo upgrades Helmerich & Payne to 'market
perform' from 'underperform', says land rig industry experiences
improving demand, upward dayrate movement and tight market
conditions 
    
 Morgan Stanley PT revisions of oil services firms
                                         Current     Previous
 C&J Energy Services Inc  CJ.N           $40         $41
 Keane Group Inc  FRAC.N                 $23         $24
 Liberty Oilfield Services Inc  LBRT.N   $25         $27
 Nabors Industries Inc  NBR.N            $9          $8.50
 Precision Drilling Corp  PDS.N          $4.25       $4.50
 Source Energy Services Ltd  SHLE.TO     C$12        C$13
 U.S. Silica Holdings Inc  SLCA.N        $43         $47
 PT revision of Helmerich & Payne Inc  HP.N 
                                         Current     Previous
 Morgan Stanley                          $60         $56
 Wells Fargo                             $64         $60
    

 (Reporting by Anirban Paul)
 ((Reuters Messaging:
anirban.paul.thomsonreuters.com@reuters.net))