April 11, 2018 / 11:32 AM / 5 months ago

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

    ** 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 said in Feb its Q1 earnings will be
reduced by 10 cents/share due to delays in deliveries of sand
used in fracking
    ** 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 (bit.ly/2jn96X0)
    ** Land drillers, like Helmerich & Payne and Nabors
Industries, 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                 $40         $41
 Keane Group Inc                         $23         $24
 Liberty Oilfield Services Inc           $25         $27
 Nabors Industries Inc                   $9          $8.50
 Precision Drilling Corp                 $4.25       $4.50
 Source Energy Services Ltd              C$12        C$13
 U.S. Silica Holdings Inc                $43         $47
 PT revision of Helmerich & Payne Inc       
                                         Current     Previous
 Morgan Stanley                          $60         $56
 Wells Fargo                             $64         $60
    

 (Reporting by Anirban Paul)
  
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