Banner
Oil and Gas Equipment and Services

Archrock, Inc. (NYSE: AROC) – FYE 12/2016 – UNDER VALUED – The stock is trading at levels below my current $57 fair value estimate – Please See Linked Worksheet


Baker Hughes, Inc. (NYSE: BHI) – FYE 12/2016


Basic Energy Services, Inc. (NYSE: BAS) – FYE 12/2014


Cameron International Corporation (NYSE: CAM) – FYE 12/2014

CARBO Ceramics, Inc. (NYSE: CRR) – FYE 12/2016


(02/21/18)Core Laboratories NV
I wish there was something about this company to get excited about, but other than the announcement that their CFO is retiring at the end of 2018, there just isn’t. Any maybe that’s a good thing, maybe a company that does the same thing year in and year out is what a portfolio needs. I have to say, y-o-y numbers were very good, with sales up 11%, earnings up 20%, and free cash flow up 7%. Debt for the period was also up, a modest 5%. In the end, everyone that owns an oil well, can benefit from what the company provides. Too bad, so sad for me, that I don’t own one.

So what’s this deal? My short-term (3-6 week hold) target price for the stock is $115.73, with an initial trailing stop at $102.97. My current future target price for the stock (a 5 year hold) is $134, which is an average annual return of 5%. A prior five year hold of the stock would have returned an average of less than 1% per year. As is always the case, please keep in mind that any investment has the potential for loss and that past performance is no guarantee of future results.

Core Laboratories NV (NYSE: CLB) – FYE 12/2017 – OVER VALUED – The stock is currently trading at levels above my most recent $34 fair value estimate – Please See Linked Worksheet
posted 02/22/18


Dawson Geophysical Company (Nasdaq: DWSN) – FYE 12/2016


FMC Technologies, Inc. (NYSE: FTI) – FYE 12/2015


Halliburton Company
The company made acquisitions during FY17 that management says will strengthen the company’s service offerings, as well as provide the company with greater market share. I’m don’t see that happening because to me, the company is simply to large for these acquisitions to have that much of a bottom line impact. Also during FY17, the company made their final payment for the Macondo well incident and have now met all of their agreed to financial obligations related to that tragic event. Several things to note going forward regarding the company’s y-o-y financial results were an increase in revenues of 30%, a decrease in earnings of 115% (in a year that saw the company spend $628M on acquistions), a decrease in free cash flow of 300%, and decrease in debt of 11%. Not exactly stellar returns, which is probably why that stock price is down 3% since the start of the year.

So here’s the deal. A prior five year hold of the stock would have returned an average of 9% per year. My current future target price for the stock based on a five year hold is $75, an average annual return of 11%.

Halliburton Company (NYSE: HAL) – FYE 12/2017 – OVER VALUED – The stock is currently trading at levels above my most recent fair value estimate – Please See Linked Worksheet


Helix Energy Solutions Group, Inc.
Investors want this one to succeed. The bottom line is that it will not. It will fail and it suck folks that listen to the analysts instead of doing their own due diligence, right down the tube with the company. Too bad. But go look for yourself. Negative free cash flow since FYE 2012. Constant changes to their FYE 10-K filings, increase in sales one year, increase in toilet paper the next. Yet every year, an increase the company’s backlog. It’s all bull. And soon enough investors that still own this one are going to find that bull inside their boots.

Helix Energy Solutions Group, Inc. (NYSE: HLX) – FYE 12/2016 – OVER VALUED – The stock is currently trading above my ($3) fair value estimate – Please See Linked Worksheet


Hornbeck Offshore Services, Inc. (NYSE: HOS) – FYE 12/2016 – UNDER VALUED – The stock is trading at levels below my current $16 fair value estimate – Please See Linked Worksheet


McDermott International, Inc. (NYSE: MDR) – FYE 12/2016


MRC Global, Inc. (Nasdaq: MRC) – OVER VALUED The stock is currently trading at levels above my most recent $3 fair value estimate. Please See Linked Worksheet


National-Oilwell Varco, Inc. (NYSE: NOV)
OVER VALUED The stock is currently trading at levels above my most recent ($-5) fair value estimate. Please See Linked Worksheet


Oceaneering International (NYSE: OII) – FYE 12/2016


Oil States International, Inc. (NYSE: OIS) – FYE 12/2017 OVER VALUED The stock is currently trading at levels above my most recent $4 fair value estimate. Please See Linked Worksheet
Posted on 03/21/18


Schlumberger Limited (NYSE: SLB) – FYE 12/2016


Superior Energy Services, Inc. (NYSE: SPN) – FYE 12/2017 UNDER VALUED The stock is currently trading at levels below my most recent $17 buy target. Please See Linked PDF Worksheet
Posted on 04/07/18


Tidewater, Inc. (NYSE: TDW) – FYE 03/2017

Please note that worksheets are updated basis the most current SEC 10-K ANNUAL filing.