Oil and Gas Service Cos.
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Posted: Wednesday Jul 19 10:04:27PM 2006
I am finding they are all selling off.
I have added close to 10K of HYD the last few days, much in the 2.21 to 2.25 cent range.
Even with dilution HYD should still do close to .30 eps for the year.
Posted: Wednesday Jul 19 8:08:37AM 2006
Sure it will but that is of course company dependent and their focus on gas drilling. With oil at an all time high and natural gas prices falling I would suspect we will see a lot of commodity switching where companies will switch their development and exploration programs to oil wells (much like the movement toward natural gas over the last 5 years). Those service companies which can adapt to servicing oil drilling activity will obviously be the beneficiaries. I think there is already a pretty big discount being given service companies as several trade in the 3 to 5 times current earnings range.
Posted: Wednesday Jul 19 4:07:26AM 2006
Doren, are you expecting lower gas prices to have an effect on service co. earnings. With exploration expenditures of some cos. being curtailed, will it negatively affect earnings of service companies? Thanks.